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.
SiMa.ai And Kaynes Semicon Partner For Physical AI Development
- By MT Bureau
- January 15, 2026
SiMa.ai and Kaynes Semicon have announced a strategic partnership to develop hardware and software for physical AI. The collaboration focuses on localising semiconductor packaging in India to improve supply-chain resilience and market delivery times.
The partners will deliver electronic systems for industries including industrial automation, robotics, automotive, aerospace and defence. Kaynes Semicon will utilise its assembly and testing capabilities to produce reference boards for SiMa.ai’s machine learning system-on-chip (MLSoC) platforms. This hardware is intended to allow system integrators to deploy AI inference technology at the edge and move from proof-of-concept to commercialisation.
The partnership includes the joint delivery of AI solutions for mission-critical requirements in smart vision, surveillance, and autonomous systems. This initiative supports the Atmanirbhar Bharat vision by fostering research, development and custom product innovation for strategic sectors in India.
Krishna Rangasayee, CEO and Founder, SiMa.ai, said, “India’s engineering talent and manufacturing scale are fundamental to our mission of democratising edge machine learning. This partnership with Kaynes Semicon aligns perfectly with SiMa.ai’s commitment to deliver effortless ML for every industry, from defence to industrial automation and beyond. Together, we are setting new benchmarks in making India a global force in physical AI".
Raghu Panicker, CEO, Kaynes Semicon, added, “Collaborating with SiMa.ai marks a significant leap forward for India’s semiconductor ecosystem. By fusing Kaynes’ advanced OSAT and manufacturing capabilities with SiMa.ai’s world-leading AI at the edge, we’re empowering critical industries to innovate at scale. This partnership is not just about technology – it’s about building a trusted supply chain, delivering value for our customers, and shaping the future of electronics manufacturing in India and worldwide”.
drivebuddyAI Showcases Vision-Based Mobility Platform At CES 2026
- By MT Bureau
- January 15, 2026
drivebuddyAI, the Ahmedabad-based developer of AI-powered Advanced Driver Assistance Systems (ADAS), debuted its mobility platform at CES 2026. The system provides data-driven solutions for commercial fleets, vehicle manufacturers, insurance providers and urban planners.
The platform is claimed to have been underpinned by 3.5 billion kilometres of driving data from India and Europe. According to the company, existing fleet deployments have resulted in an 83 percent reduction in drowsiness and a 72 percent reduction in fleet risk. Insurance companies are currently utilising the platform’s Fleet Safety Index to develop usage-based insurance (UBI) products and video-enabled First Notice of Loss (FNOL) systems to manage loss and claim ratios.
The platform operates by collecting data from High Dynamic Range (HDR) cameras and the vehicle's Controller Area Network (CAN). This information is processed on the vehicle using a real-time QNX or Linux edge system. The software includes patented models for driver monitoring, collision warnings, and blind-spot detection.
The system utilises a federated learning architecture, which enables real-time AI learning and data protection. Updates are delivered back to vehicles via over-the-air (OTA) technology, while insights are shared with partners through cloud APIs. The technology meets the AIS-184 standard in India and is certified under the European Union’s General Safety Regulation (GSR) 2144 and the EURO NCAP 2026 protocol.
Beyond safety, drivebuddyAI intends to apply its technology to Smart Cities and mapping. Features include road condition monitoring, traffic behaviour analytics, and the identification of accident black-spots to assist in infrastructure planning. For vehicle manufacturers, the pre-certified AI is intended to reduce the time and cost required for validation.
Nisarg Pandya, CEO and Founder, drivebuddyAI, said, “The response we received at CES has been tremendous. Attendees visiting our booth were fascinated by our innovation. Our platform has already demonstrated a reduction of over 70 percent in accidents across large commercial fleet deployments. Underlying technology is validated by leading global regulators, including the Automotive Research Association of India under India’s AIS-184 standard and certified in the European Union’s General Safety Regulation (GSR) 2144 and European New Car Assessment Programme (EURO NCAP) 2026 protocol. The platform is also ready to meet the requirements of the National Highway Traffic Safety Administration and the Federal Motor Carrier Safety Administration (USA), and other global markets. We look forward to taking this technology to more markets.”
Krafton India Partners Royal Enfield To Introduce Bullet 350 And Continental GT 650 In Battlegrounds Mobile India
- By MT Bureau
- January 13, 2026
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."
BASF Extends Plastic Service Life Predictions For Electric Vehicle Components
- By MT Bureau
- January 13, 2026
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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