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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BYD India, a subsidiary of the world’s largest New Energy Vehicle (NEV) manufacturer, has showcased its DM-i (Dual Mode Intelligent) plug-in hybrid technology in India. Positioned as a transitional bridge between internal combustion engines and pure battery electric vehicles (BEVs), the incoming powertrain technology targets long-haul efficiency with a combined cruising range exceeding 1,200 km.

With a global plug-in hybrid history starting with the F3DM in 2008, BYD has amassed over 8 million cumulative PHEV sales, capturing a 35 percent global market share in the segment. The technology's introduction in India is intended to expand BYD's domestic portfolio beyond its current pure-EV lineup, which serves a growing base of 14,000 customers via 48 showrooms across 40 cities.

Unlike conventional hybrids that rely on a petrol engine as the primary mover with electric motors acting as secondary support, BYD's DM-i architecture reverses this layout to operate as an Electric-First system.

The vehicle relies primarily on battery power across everyday urban commutes. The petrol engine operates secondary to propulsion, working as a silent generator to maintain battery state-of-charge or engaging directly only during high-load, high-speed scenarios.

The system manages energy distribution via three intelligent operating modes:

• EV Mode: The vehicle relies entirely on the electric motor and battery pack, mimicking a standard BEV for zero-emission city driving.
• HEV ‘Series’ Mode: For mid-range driving, the onboard engine acts strictly as a generator, supplying electricity to charge the battery while the electric motor continues to turn the wheels.
• HEV ‘Parallel’ Mode: Under heavy acceleration or high-speed cruising, the petrol engine mechanically couples to the drivetrain, providing direct propulsion to the wheels alongside the electric motor.

The DM-i platform pairs advanced electric motor hardware with a highly specialised internal combustion engine optimised for thermal cycling:

• Xiaoyun 1.5L Engine: The platform utilises a dedicated 1.5-litre naturally aspirated petrol engine that achieves an industry-leading thermal efficiency of 43.04 percent.
• Super Hybrid Blade Battery: Power is stored in a specialised iteration of BYD's proprietary Lithium Iron Phosphate (LFP) Blade Battery, engineered for structural safety, puncture resistance and high thermal stability.
• Fuel Economy: Under standard test conditions, the powertrain achieves a low consumption rate of 4.8-litre per 100 km (approximately 20.8 kmpl).
• Acceleration: The Electric Hybrid System (EHS) delivers seamless, single-speed acceleration, enabling a zero to 100 kmph sprint time of under 5.5 seconds in its high-performance configurations.

Initially entering India in 2007 to build electric buses and commercial chassis, BYD India has scaled its passenger vehicle presence with models including the e6, Atto 3, Seal, eMax 7 and Sealion 7. The company supports its local assembly operations through two manufacturing facilities spanning over 140,000 square meters, representing an investment of more than USD 200 million.

Rajeev Chauhan, Head of the Electric Passenger Vehicles Business, BYD India, said, "The introduction of DM-i technology marks a pivotal step in our commitment to making sustainable mobility more versatile and accessible for Indian consumers. By enabling electric-first driving for daily use while seamlessly supporting long-distance travel, DM-i addresses some of the most pressing barriers to the adoption of sustainable motoring in India. With this innovation, we are bringing a new technology to Indian consumers, and also shaping a smarter, more flexible pathway towards sustainable transportation."

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Astemo Americas, Inc. has announced its collaboration with NVIDIA as a DRIVE Hyperion Tier-1 partner. The company will focus on developing electronic control units (ECUs) utilising dual NVIDIA DRIVE AGX Thor systems-on-a-chip (SoCs) to support the automotive industry's ongoing shift toward software-defined, Level 4-ready autonomous vehicles.

NVIDIA DRIVE Hyperion serves as a production-ready reference architecture and ecosystem designed to help automakers streamline the deployment of highly automated and fully autonomous driving technologies.

Astemo Americas' engineering integration focuses on building a dual-SoC compute engine capable of handling the severe data workloads required by next-generation vehicle platforms. The collaboration pairs specialised high-performance artificial intelligence (AI) computing with optimised thermal and power management.

The partnership expands Astemo Americas' traditional footprint as a tier-one component supplier, shifting it into a primary integration partner for advanced autonomous system infrastructure. By combining its existing background in electric powertrains, active chassis systems and engine management with NVIDIA’s AI processing units, the company aims to provide global automakers with scalable, production-ready central computing nodes that bridge the gap between experimental development and high-volume vehicle production.

Mathieu Devillard, Executive Vice-President and Head of the Electrification Business Division, Astemo, said, “Astemo’s electrification and software-defined vehicle capabilities are central to where mobility is headed. By joining the NVIDIA DRIVE Hyperion ecosystem, we can help accelerate the development of advanced autonomous vehicle technologies while supporting automakers with scalable, cost-effective solutions.”

Rishi Dhall, Vice-President – Automotive, NVIDIA, added, “As a DRIVE Hyperion Tier-1 ecosystem partner developing dual NVIDIA DRIVE AGX Thor ECUs for automotive OEMs, Astemo is helping bring scalable autonomous driving platforms closer to production.”

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American technology company Lucid Group has announced the commercial rollout of its latest over-the-air (OTA) software update for the Lucid Gravity SUV. The digital update introduces hands-free driving functionality alongside upgraded navigation capabilities, thermal management indicators and active headlight technology.

The cornerstone of the software package is the deployment of hands-free driving capabilities through the DreamDrive 2 Pro hardware and software suite. The Hands-Free Drive Assist feature manages active steering, acceleration and braking inputs on pre-mapped, compatible divided highways across North America. The system enforces continuous driver attention monitoring to ensure safety compliance.

By activating the turn signal indicator, drivers can trigger Hands-Free Lane Change, allowing the vehicle's sensor suite to guide the SUV into an adjacent lane once an appropriate gap is verified. Furthermore, the system includes Automatic Lane Change, which can independently initiate passing manoeuvres to overtake slower traffic flow.

The update replaces legacy point-of-interest data with an integrated Google Maps Places API directly inside the native Lucid Navigation interface.

The software patch provides contextual search results, allowing operators to view real-time business ratings, hours, crowdsourced photographs and localised parking data. For electric vehicle (EV) route planning, charging station listings now populate with real-time stall availability metrics and recent user imagery to verify site conditions.

Furthermore, to optimise charging efficiency, the instrument cluster adds two transparency tools:

• Advanced Preconditioning View: Displays real-time traction battery pack temperature metrics as it prepares for high-speed DC fast charging.
• Predictive Charging Power: Forecasts the exact peak kilowatt (kW) charging performance the vehicle will accept before the driver plugs into a charging station.

The update is available for Lucid Gravity trims outfitted with DreamDrive Premium and DreamDrive 2 Pro, it activates Adaptive Driving Beam functionality. The matrix headlight technology improves low-light visibility by maintaining high-beam illumination across dark roads while utilising dynamic dimming zones to automatically mask out surrounding oncoming vehicles, preventing glare for other drivers.

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Cautio, a leading Indian AI-powered fleet safety and mobility intelligence platform, has announced the appointment of Nitin Chadha as Senior Vice-President of Growth & Strategy.

In this leadership role, Chadha will oversee business growth, strategic corporate partnerships and enterprise market expansion as the company accelerates deployment across the commercial mobility sector.

Chadha brings over 21 years of experience across mobility, consumer technology, automotive, insurance and the startup ecosystem. He has previously held senior executive positions at prominent mobility and fintech platforms, including Acko, Spinny and Park+. Additionally, he is an entrepreneur who co-founded sRide, one of India’s earliest carpooling and shared mobility networks.

His appointment coincides with an increased push by commercial fleet operators toward AI-driven data intelligence to enhance driver accountability and fulfil strict risk-prevention goals. Tightening state and national regulatory standards surrounding road safety and continuous driver monitoring are moving fleet management workflows away from reactive accident tracking toward real-time prevention.

This transition is also mirroring larger updates to public infrastructure. The National Highways Authority of India (NHAI) recently introduced plans to deploy AI-powered dashcam analytics across approximately 40,000 kilometres of national highways to systematically elevate road monitoring, predictive maintenance, and general motorist safety.

Founded by Ankit Acharya (CEO) and Pranjal Nadhani (CTO), the video telematics platform combines intelligent dual-lens hardware with its proprietary operating system to track driver fatigue, distraction, and unsafe on-road behaviour. Within a short 15-month operational span, the startup has built a substantial data footprint across the country, which secures and monitors over 15,000 live vehicles daily across more than 130 Indian cities. The company has been instrumental in enabling over 150 million safe kilometres while triggering over 60 million AI alerts on active driving patterns.

Cautio claims it has successfully intervened in more than 3,000 real-world safety events, helping operators avert over 2,400 potential accidents, flagging 550+ cases of impaired driving and defeat more than 500 fraudulent or false claims.

It has established itself as a safety infrastructure provider for over 80 major institutional and transport clients, including RedBus, Zingbus, Euro Cars, Cityflo, Infants, Shoffr, G4S and the Indian Army.

Ankit Acharya, Co-Founder & CEO, Cautio, said, "Nitin brings a rare combination of operating depth, mobility-sector understanding and growth leadership. His experience gives him a strong perspective on how large mobility ecosystems function and scale. As Cautio enters its next phase of growth, his leadership will be instrumental in expanding our partnerships, strengthening our revenue engine and bringing our fleet safety platform to more operators across India."

Nitin Chadha added, "Mobility in India is undergoing a fundamental transformation. Operators today want technology partners that can help them improve safety, accountability and operational efficiency at scale. What drew me to Cautio is its long-term vision of building safety infrastructure, not simply selling technology products."

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