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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Bengaluru-headquartered L&T Technology Services (LTTS), a global leader in AI and Digital Engineering R&D, has entered into a strategic global partnership with Emerson, a global automation leader.

The strategic collaboration aims to accelerate system integration and product development across the industrial, transportation, semiconductor & aerospace and defence sectors.

Under the agreement, LTTS will act as a global System Integrator and technology development partner for Emerson’s NI (National Instruments) test and measurement platform. The partnership focuses on architecting software-defined, data-centric engineering environments that enhance system performance and sustainability.

As part of the understanding, LTTS will establish a dedicated CoE at its Mysuru campus in India. This hub will leverage NI hardware and software to drive applied innovation, test automation and validation workflows. The partners will co-develop solutions tailored for high-complexity sectors where resilience and engineering rigor are critical. The engagement also includes joint go-to-market initiatives and extended client support models to provide ‘lifecycle enablement’ for global enterprises.

Ritu Favre, President for Emerson’s Test and Measurement business, said, “Engineering environments are becoming increasingly software defined, data centric and interconnected. Our open, modular NI platform provides the architectural foundation organisations need to manage growing system complexity while accelerating validation and deployment cycles. Through our collaboration with LTTS as a global system integrator, we extend this platform into industry-specific implementations that help customers move from engineering uncertainty to operational confidence and leveraging the proven technology leadership of NI automated test and measurement solutions.”

Alind Saxena, Executive Director & President at LTTS, added, “Our clients in Mobility, Sustainability and Tech require engineering systems that are intelligent and future-ready. Our partnership with Emerson strengthens LTTS’ ability to architect and deploy such systems at scale.”

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Mumbai-headquartered SUV major Mahindra & Mahindra has successfully deployed AI-powered conversational voice agents to manage the massive customer outreach for the launch of its premium SUV, the XUV 7XO.

The initiative, led by the group’s dedicated Mahindra AI division, utilised AI-tech from ElevenLabs to handle high-volume customer interactions during the peak launch period.

The XUV 7XO, which premiered on 5 January 2026, represents Mahindra's most technologically advanced internal combustion engine (ICE) vehicle. To manage the typical surge in inquiries that accompany a major automotive launch, Mahindra AI opted for a scalable digital solution rather than traditional call centre expansion.

The AI voice agents, named nAIna, conducted thousands of concurrent outbound calls, engaging prospective buyers in natural, multi-turn conversations. Powered by ElevenLabs’ Text-to-Speech API, the agents provided human-like, low-latency responses in multiple languages. The campaign is said to have achieved around 8 percent conversion uplift in qualified inquiries, successfully routing high-intent leads directly to dealerships.

Using AI, the system provided ‘always-on’ support, contacting leads and answering queries outside of standard business hours.

Manjari Upadhye, Chief Marketing Officer, Automotive Division, Mahindra & Mahindra, said, “Large-scale launches need new ways to manage customer conversations. During the XUV 7XO launch, our partnership with ElevenLabs helped us successfully deploy AI voice agents to support peak demand and helped route queries to dealerships.”

Karthik Rajaram, GM & Country Head, India, ElevenLabs, added, “Automotive launches compress weeks of customer demand into days. Every call needs to sound as natural and responsive as the first, whether it is the tenth or the ten-thousandth. This partnership with Mahindra showed that AI voice agents can operate at enterprise scale in India - handling thousands of concurrent calls in multiple languages without compromising conversation quality. This sets a new benchmark for how automotive brands can engage buyers at launch.” 

Following the measurable success of the XUV 7XO campaign, Mahindra AI plans to integrate these intelligent voice layers across the entire automotive lifecycle, including service reminders, follow-ups, and long-term customer engagement workflows.

The XUV 7XO is positioned as the premium evolution of the XUV700, priced between INR 1.5 million and INR 2.55 million. It is the first vehicle in India to feature the combined Dolby Vision and Dolby Atmos entertainment experience, alongside a ‘Coast-to-Coast’ triple-screen HD display and Level 2 ADAS safety features.

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MathWorks, a leading software tools company, recently concluded MATLAB EXPO 2026 today, hosting over 1,300 engineers, scientists and industry leaders to discuss the transition of generative AI, engineering copilots and agentic AI from experimental phases to production-scale deployment.

The event focused on the integration of AI-assisted design and simulation into Model-Based Design workflows across industries such as automotive, aerospace and semiconductors. Discussions highlighted the importance of maintaining engineering rigour, traceability and safety while utilising automated workflows.

At the event, MathWorks leaders Seth Deland and Avinash Nehemiah demonstrated how agentic AI capabilities in MATLAB and Simulink are accelerating simulation-led decision-making and system deployment.

Savyasachi Srinivas, VP at Collins Aerospace, detailed the use of AI-enabled knowledge systems and digital twins to move aerospace products from initial concept through to formal certification.

The event saw a panel discussion featuring representatives from Boeing, Mercedes-Benz R&D India, TCS, HSBC and the Indian Institute of Science addressing the critical need for human oversight and verification when validating AI-assisted outputs in real-world systems.

Also, the event saw technology demonstration including Raftar Formula Racing from IIT Madras, displayed their competition-winning race car designed using MathWorks tools.

The highlight at the UAV Pavilion saw drone and eVTOL (electric Vertical Take-Off and Landing) platforms from Speedgoat, Zmotion Autonomous Systems and Reude Technologies.

Sunil Motwani, Country Manager – Sales and Service – MathWorks India, said, “This year’s MATLAB EXPO reflected growing industry interest in applying GenAI, copilots and agentic AI to engineering workflows in ways that improve productivity while preserving validation, traceability and safety.”

The conference underscored a consistent industry shift: engineering teams are moving beyond basic AI experimentation toward certification-ready systems where AI agents accelerate design and verification while keeping engineers central to the decision-making process.

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Hyderabad-based electric vehicle manufacturer Olectra Greentech has announced the adoption of Dassault Systemes’ 3DEXPERIENCE platform.

The collaboration is designed to create a digitally integrated product development ecosystem, aligning Olectra's engineering processes with global OEM standards.

The 3DEXPERIENCE platform provides a unified environment that connects design, simulation and manufacturing. By implementing this system, Olectra aims to move toward virtual twin technology and model-based engineering, allowing it to validate vehicle designs in a virtual space before physical prototyping.

Key Objectives of the Collaboration:

• Digital Integration: Transitioning from component-level engineering to system-level digital orchestration.
• Accelerated Time-to-Market: Reducing innovation cycles through seamless collaboration between engineering and manufacturing teams.
• Virtual Validation: Using simulation to ensure precision and reduce the need for multiple physical prototypes.
• Scalability: Developing new electric bus and truck platforms capable of meeting international benchmarks.

Mahesh Babu, MD, Olectra Greentech, said, At Olectra, we see the future of mobility being shaped by electrification and digital engineering. As part of our commitment to transforming mobility through accessible innovation and a pragmatic future, we are making significant investments in developing new bus and truck platforms. Our collaboration with Dassault Systemes and adoption of the 3DEXPERIENCE platform will play a vital role in building these to global standards and aligning with global benchmarks. This enables us to move faster, design smarter, and deliver with world class precision. As India accelerates its EV transition, we remain focused on leading in both deployment and engineering excellence.”

Deepak NG, Managing Director, India, Dassault Systemes, added, “Our collaboration with Olectra reflects a forward-looking shift toward integrated, platform-driven innovation, enabling faster, smarter, and more sustainable electric vehicle development. Together, we aim to strengthen the transformation of India’s mobility ecosystem through virtual twin experiences.”

The adoption of the platform comes as Indian manufacturers increasingly shift toward platform-based engineering to manage the complexity of next-generation vehicle architectures and drive sustainable growth in the EV sector.

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