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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The Automotive Research Association of India (ARAI), an autonomous body under the Ministry of Heavy Industries, Government of India, has announced the readiness of its ambitious and pioneering project, the ‘ADAS Test City’.

The new facility spread across 20 acres in Takwe near Talegaon, Pune, is designed as a pseudo city to replicate the diverse road conditions in India, which will be instrumental to test and validate Advanced Driver Assistance Systems (ADAS) in a safe, secure, repeatable and controlled environment. The idea is to support the development of ADAS solutions to meet the real-world scenarios in India. The ADAS Test City is also the first-of-its-kind such dedicated facility in the country.

Furthermore, ARAI also announced that it will host ‘The ADAS Show’ in association with Aayera, at the new facility on 12 December 2025, where it expects automakers, tier 1 suppliers and technology companies to showcase their innovation and test vehicles.

Dr. Reji Mathai, Director, ARAI said, “ADAS are pivotal in enhancing road safety, and ARAI remains committed to driving the adoption of safe, smart, and sustainable mobility solutions across industry. Our upcoming ADAS Smart City Track represents a landmark initiative – India’s first dedicated proving ground designed to enable automotive and auto-tech manufacturers to rigorously test and validate their technologies in real-world conditions. We thank the Ministry of Heavy Industries for their gracious support under their Capital Goods Scheme which has enabled us to install the modular infrastructure for Verification and Validation of ADAS at the Test City. This facility will play a crucial role in advancing ADAS capabilities by empowering manufacturers to deliver best-in-class safety solutions to consumers. Moreover, this ADAS Smart City Track will not only facilitate but will boost indigenous ADAS/AV technology development from the budding start-up ecosystem. Hence, events such as The Adas Show, organised in collaboration with Aayera, are instrumental in fostering open dialogue and collaborative innovation in the realm of intelligent mobility. We look forward to insightful deliberations and a successful event on 12th December 2025.”

Syed Fareed Ahmed, Director, Aayera, added, “THE ADAS SHOW is India’s definitive platform where automotive leaders, technologists, and innovators converge to showcase and discuss the most advanced driver-assistance and safety technologies. The previous editions were inaugurated by Dr. Hanif Qureshi, IPS, Additional Secretary (Automobiles), Ministry of Heavy Industries, Government of India at ICAT, and witnessed participation from leading OEMs such as Honda, JSW MG Motors, BMW, Volvo, Mahindra & Mahindra, Tata Motors, Maruti Suzuki India, alongside global technology leaders including Bosch, ZF, Valeo, Harman, Starkenn, Rosmerta, Dassault Systemes, NXP, Uno Minda and many more. The Adas Show is a dynamic and engaging event that unites vehicle manufacturers, ADAS technology companies and testing equipment providers to present cutting-edge innovations in real-world scenarios.”

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Bengaluru-headquartered engineering R&D service company L&T Technology Services has inked a strategic partnership with Silicon Valley-based SiMa.ai, a leader in Physical AI. The partnership will focus on driving AI-driven solutions across mobility, healthcare, industrial automation and robotics.

As per the understanding, LTTS’ will combine its deep engineering expertise and domain focus with SiMa.ai’s MLSoC ONE platform and software SDK. SiMa.ai will deliver industry-leading AI hardware and software solutions by leveraging LTTS’ core engineering capabilities and human capital investments across key areas such as in-vehicle infotainment (IVI), AD/ADAS, industrial automation & robotics and healthcare.

Amit Chadha, CEO & MD, L&T Technology Services, said, “SiMa.ai cements LTTS’ position as a leader in AI-led ER&D solutions. By combining SiMa.ai’s groundbreaking AI computing technology with our expertise in design and implementation, we are empowering clients across robotics, mobility and healthcare to accelerate time-to-market, enhance operational efficiency and deliver unparalleled value. Together, we are driving the industry forward, embedding intelligence into innovative solutions that are sustainable and scalable.”

Krishna Rangasayee, Founder & CEO, SiMa.ai, said, “Our collaboration with LTTS symbolises the synergy required to scale physical AI applications globally. LTTS brings unmatched engineering capabilities and client reach, making them an ideal partner. By working together, we enable industries to harness the full potential of AI, delivering high performance and power efficiency to clients while simplifying the adoption process.”

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Rapido, a leading ride-sharing platform in India, has joined forces with the Jaipur Police Commissionerate to launch a new initiative focused on improving women's safety in the city's public transportation. This partnership, which follows a week-long awareness campaign, will see the installation of dashcams in 100 Rapido cabs to enhance ride monitoring and emergency response times.

Rapido stated that at present, 40 percent of its cab users in Jaipur are women. The initiative, titled ‘Sashakt Nari – Zimmedari Hamari’ (Empowered Women – Our Responsibility), was flagged off by Jaipur Police Commissioner Biju George Joseph and Deputy Commissioner of Police Rajarshi Raj. The campaign underscores the shared responsibility of citizens, service providers and law enforcement in ensuring women can travel safely and with confidence.

Rajarshi Raji said, "Women's safety is a collective responsibility that goes beyond the role of the police. When communities, technology partners, and law enforcement work together, we can create a safer and more supportive environment for women. Initiatives like this campaign help build confidence, enabling women to move freely for work, education and daily life."

Sudipta Sen, Senior Manager at Rapido Cabs, noted, "At Rapido, safety is not an add-on; it is the foundation of every ride. With 40% of cab users in Jaipur being women, our collaboration with Jaipur Police focuses on practical measures that can make every journey safer and more reassuring. By introducing dashcams, providing 24x7 support, and driving awareness campaigns, we are working to make mobility safer, inclusive and truly empowering for women. Our goal is to ensure that every woman in Jaipur should be able to travel with confidence and see mobility as a catalyst for her independence and participation in the city’s growth.”

The dashcams will supplement Rapido's existing safety features, which include an in-app SOS button, real-time ride tracking and a call-masking feature for female customers.

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In a major move set to redefine global connectivity for mobile assets, Luxembourg-based OrbitsIQ Global (OIQ) has completed the acquisition of Munich-based NewSpace startup, UNIO Enterprise. The deal, which combines UNIO’s pioneering connectivity software with OIQ's satellite and terrestrial network capabilities, aims to provide seamless, uninterrupted service to millions of vehicles, boats, planes and autonomous systems worldwide.

The merger is poised to create a ‘ubiquitous bridge’ between cellular and satellite networks, ensuring constant connectivity for mobile assets. The partnership is a significant step towards enabling critical technologies like autonomous driving, smart logistics and predictive maintenance, all of which rely on uninterrupted data flow.

Katrin Bacic, CEO, UNIO Enterprise, said, "Joining OIQ Global marks a turning point for UNIO. With our connectivity expertise and OIQ’s constellation vision, we will redefine how mobility assets connect. This partnership allows us to accelerate our roadmap and deliver the next generation of intelligent connectivity across terrestrial and satellite networks for industries such as automotive, agriculture, logistics and maritime sectors."

Joseph J Euteneuer, CEO, OIQ Global, said, "We are delighted to welcome UNIO Enterprise into the OIQ Global family. Their AI-powered smart-switch connectivity technology is the perfect complement to our global anywhere anytime connectivity vision. Together, we will establish a seamless, multi-band mobility connectivity capability that unlocks new frontiers in efficiency, safety and operational insight around the world."

The companies believe this acquisition positions Europe at the forefront of global telematics innovation, strengthening the continent’s leadership in a field where mobility connectivity has become as essential as fuel.

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