The global shortage of semiconductors or chips in the aftermath of the Covid-19 led pandemic has eased as per a report by Crisil. A development that led most automakers to cut down production significantly and postpone the launch of new models or to put them to production through 2020, 2021, 2022 and a good part of 2023 has finally eased to iron out any supply chain disruptions that may be there. 

Expected to address and improve predictive demand forecast, the better availability of chips should enable better production schedules. By FY2025-26, Crisil analysts are of the opinion that demand-supply dynamics should be more balance with additional manufacturing capacities getting commissioned. 

With the chips possessing distinct electrical properties that make them the cornerstone of all electronic equipment and devices, it is the auto industry that has come to use them for a variety of functions as automobiles turn increasingly software driven. While the computer and communication equipment (C&C) segment consumes roughly 63 percent of the chips produced, the auto industry consumes roughly 13 percent of them. The other industrial segments consume about 12 percent. 

With new developments such as autonomous and EVs, the use of semiconductors in automobiles is only slated to rise. With passenger vehicles the recipient of most technological innovations ahead of other segments such as two-wheelers, three-wheelers and commercial vehicles, it should not come as a surprise that they consume about 1,500 chips on average – the highest among all automobile types. 

As more advanced electronic features are incorporated, the use for chips increases. The electric passenger vehicles, for example, use almost twice as many chips as internal combustion engine (ICE) passenger vehicles do. The improving supply and slowing demand for computers and mobile phones is therefore looked upon as a blessing in disguise for automobiles and their manufacturers. 

Anuj Sethi, Senior Director, CRISIL Ratings, mentioned, “The chip shortage faced by Indian passenger vehicle makers is easing, with current availability at 85-90 percent of total requirement. The production loss on account of the chip shortage, which had halved to about 300,000 PVs on-year in fiscal 2023, is estimated to have further declined to under 200,000 PVs by the end of September 2023.”

Most passenger vehicle manufacturers are currently operating at near optimal capacity utilisation due to stronger-than-anticipated demand. New orders to be serviced remains high at about 700,000 units at the end of September 2023. 

The easing of chip shortage should help automakers honour new orders with better prediction and faster production. Global automobile demand, severely impacted by the Covid-19 pandemic, made a strong recovery in the latter part of FY2021-22. It caught automobile manufacturers off guard as they had not placed substantial orders for chips. 

The surge in demand for personal computers, laptops and mobile phones, driven by work from home, virtual learning and remote healthcare services, led to a significant chip procurement challenge for the automakers. 

Geographically, the chip ecosystem is skewed, with western nations dominating chip architecture, design, manufacturing equipment, specialised materials and chemicals. Semiconductor fabs1 on the other hand are concentrated in eastern nations, such as Taiwan and South Korea.

Given the criticality of chips in the defense and aerospace industries, the United States and the European Union have offered incentives of about USD 100 billion for localisation of semiconductor fabs. As a result, many global players are slated to spend about USD 360 billion towards setting up new facilities, which would be operational by 2025 and 2026. 

In the Indian context, demand for chips will continue to increase over the medium term, driven by the gradual rise in EV adoption and growing demand for advanced feature-laden ICE vehicles.

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Krafton India and Royal Enfield have announced a strategic partnership to integrate the iconic Bullet 350 and Continental GT 650 motorcycles as rideable vehicles within Battlegrounds Mobile India (BGMI) game, beginning in January 2026.

As part of the integration, Royal Enfield showcased a physical motorcycle based on the Continental GT 650, featuring a design inspired by the aesthetics of BGMI. The motorcycle was developed with a Delhi-based custom builder using metal forming and prototyping. The design includes picatinny rails, plating and tyres that reference combat and survival mechanics found in the game.

The partnership is included in the BGMI 4.2 update scheduled for 15 January 2026. Players will have access to Royal Enfield-themed content and rewards through a special format from 19 January to 22 February 2026. Available rewards include the Revel 01 Set, a P90 gun skin and the virtual versions of the Continental GT 650 and Bullet 350.

To drive participation, the collaboration introduces a login mechanic where players who remain in the application for 60 minutes daily qualify for a Royal Enfield Event Crate. Users can collect up to 34 crates during the event period, containing various items designed to reflect the brand's legacy within the game ecosystem.

Seddharth Merrotra, Head of Business Development & Partnerships, Krafton India, said, “This strategic partnership with Royal Enfield embodies BGMI’s vision of creating culturally meaningful and locally rooted experiences. 2026 will be a year of many firsts and we’re kicking it off with one of our most ambitious brand integrations yet, while fundamentally elevating how partnerships enhance player engagement and drive shared value. Royal Enfield is an iconic name in the global automotive universe and its deep community roots with evolving digital ethos make it a natural ally for BGMI’s player-centric universe. Together, we are weaving storytelling, lifestyle, and digital culture into gameplay in a way that truly reflects the aspirations of modern Indian youth. Looking ahead, this collaboration sets a strategic foundation for future partnerships that are experiential, immersive, and deeply connected with our community’s passions across movies, sports, FMCG and lifestyle landscapes.”

Adrian John Sellers, Head - Custom & Motorsports, Royal Enfield, said, "Partnering with BGMI is about more than just presence; it’s about meeting our community in their element and amplifying the shared values of thrill, freedom, and self-expression. The custom-built Continental GT 650 is the physical heartbeat of this collaboration—an intersection where the raw, tactical aesthetic of gaming meets the soul of custom motorcycling. By blending BGMI’s battle-ready elements with Royal Enfield DNA, we have created a machine where imagination isn't limited by reality. It is a celebration of creative exploration for a community that thrives on both the digital and the open road."

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German chemical major BASF has announced the results of long-term material testing that predicts a service life exceeding 100,000 hours for its latest generation of polyamides used in electric vehicles (EVs).

The shift toward e-mobility has increased durability requirements for plastic components under the bonnet, with components now requiring a lifespan of 45,000 to 55,000 hours, compared to 5,000 hours for internal combustion engines (ICE).

The increase in required service life is driven by battery charging processes that require constant temperature regulation. To verify performance, BASF transitioned from standard air-heat testing to hydrolysis storage, which involves ageing materials in water-glycol mixtures. The company employs the Arrhenius equation to determine the relationship between temperature and reaction rate, allowing for the extrapolation of service life under standard operating conditions.

The material tested, Ultramid, features glass fibre reinforcement and a low halogen content. Testing initiated in August 2020 indicates that the hydrolysis resistance of this polyamide allows it to maintain its properties for over 100,000 hours. These components are typically utilised in vehicle pumps and valves.

The data provides the automotive and haulage sectors with verification that plastic components can withstand the chemical and thermal demands of long-term EV operation.

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Bengaluru-based electric vehicle and technology company Ultraviolette Automotive has unveiled its voice assistant, christened ‘Violette’, at the Consumer Electronics Show (CES) 2026. Developed in partnership with Soundhound AI, the system allows riders to interact with the F77 electric motorcycle using voice commands to manage vehicle functions and access data.

The technology was demonstrated through the wake phrase ‘Violette’, enabling users to switch riding modes, start navigation and retrieve information from the user manual, such as tyre pressure specifications and service instructions. The system also provides proactive alerts, ride statistics and pre-ride checks via voice interface.

To facilitate interaction without visual distraction, the voice assistant operates through an audio-integrated helmet. This setup serves as the primary interface between the rider and the motorcycle, allowing for the retrieval of information while maintaining focus on the road.

Narayan Subramaniam, CEO & Co-Founder, Ultraviolette Automotive, said, “At Ultraviolette, we believe AI is going to play a pivotal role in enhancing rider safety. As a technology-first company in the mobility space, our mission has always been to redefine the riding experience by fusing cutting-edge engineering with intelligent systems. The integration of Violette A.I. with Soundhound AI marks a significant step in advancing human–machine interaction. By enabling seamless voice-led control we are creating a riding experience that is intuitive, immersive, and future-ready, allowing riders to stay fully focused on what matters most- the road ahead”.

Niraj Rajmohan, CTO & Co-Founder, Ultraviolette, said, “At Ultraviolette, we have spent years developing technologies that make a meaningful impact in the mobility space, with a singular focus on bringing riders closer to their motorcycles in the most effortless way possible. Artificial Intelligence plays a crucial role in this transformation and in elevating the riding experience by anticipating rider needs, simplifying complex interactions, and delivering information instantly and safely. Violette A.I. represents a huge step in that direction, where every command, every query, and every interaction enhances rider confidence, safety, and comfort. By embedding intelligence directly into the riding experience, we are not only simplifying how riders engage with their motorcycles but also creating a new paradigm of connected mobility that is smarter, safer, and deeply human-centric”.

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GAC International and Grab have established a strategic partnership to deploy 20,000 electric vehicles (EVs) across six Southeast Asian countries within the next two years. The agreement, signed on 7 January 2025, marks a shift for GAC from product exports to the expansion of an integrated ecosystem comprising products, services and data.

The collaboration focuses on the introduction of three models under the AION brand: the AION Y, AION ES and AION V. These vehicles will be integrated into Grab's fleet to serve the taxi and ride-hailing segments. The AION V, which holds a Euro NCAP five-star safety rating, is positioned as the flagship SUV for the region, while the AION Y and ES models target the high-volume electric taxi market.

Beyond vehicle supply, the companies intend to integrate the Grab driver app directly into GAC’s intelligent cockpit systems. This technical link is designed to improve order acceptance efficiency and driver safety. The partnership also covers the development of aftersales support, data value mining and charging infrastructure to support the large-scale deployment of EVs in the region.

Xia Xianqing, President of GAC Group, attended the exchange, while the agreement was signed by Wang Shunsheng, Vice President of GAC International, and Dylan Choon, Regional Manager of Strategic Partnerships at Grab.

The move comes as the Southeast Asian EV market reported a 50 percent YoY sales increase in 2024. By leveraging Grab’s user base, GAC aims to build brand awareness and gather market insights for future model development. The initiative is intended to reduce regional transport emissions in line with carbon neutrality targets.

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