India’s automotive industry could face fresh supply chain disruptions by mid-July 2025 due to declining inventories of rare earth magnets, following tightened export restrictions and shipment delays from China, according to rating agency ICRA.

Jitin Makkar, Senior Vice President and Group Head – Corporate Ratings at ICRA, cautioned that the situation echoes the semiconductor shortage of 2021–22, which led to the loss of nearly 100,000 passenger vehicles. “Rare earth magnet inventories are projected to last only until mid-July 2025 for several passenger vehicle and two-wheeler applications,” he said.

Neodymium-iron-boron (NdFeB) magnets, critical for high-performance uses like EV traction motors and power steering systems, are heavily imported – around 85 percent of India’s USD 200 million imports in FY2025 came from China. These magnets make up nearly 30 percent of an electric two-wheeler motor’s cost, with motors priced between INR 8,000 and INR 15,000 depending on specifications.

To counter the supply challenge, Indian OEMs and auto component manufacturers are exploring several alternatives: importing fully assembled motors from China, sending rotors to China for magnet assembly, using substitute materials with similar properties, or switching to rare earth-free motors using electromagnets. However, each option faces significant logistical, regulatory, and engineering hurdles.

While the immediate impact could disrupt production planning, ICRA believes the crisis may also drive innovation and diversification in both materials and supply chains for the Indian auto sector.

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Bengaluru-headquartered design and technology services company Tata Elxsi has inked a Memorandum of Understanding (MoU) with Synopsys, a leader in silicon to systems design solutions, to accelerate automotive virtualisation solutions.

The partnership aims to provide customers pre-verified, integrated solutions and services that make it easy to design and deploy virtual electronic control units (vECUs). This they shared is a cornerstone technology critical for efficient software development and testing in today’s software-defined vehicles (SDV).

As per the understanding, Tata Elxsi will bring its engineering capabilities in embedded systems and integration with Synopsys’ industry-leading virtualisation solutions, which is said to be used by more than 50 global automotive OEMs and Tier 1 suppliers. This will not only reduce development complexity and cost, but also improve quality of software systems and de-risk vehicle production timelines.

Deployed across vehicle domains such as powertrain, chassis, body control, gateway and central compute, the partners are already working on several global programs. This enables their customers to simulate real-world scenarios, validate software early and reduce reliance on physical prototypes.

Sundar Ganapathi, CTO – Automotive, Tata Elxsi, said, “Our partnership with Synopsys reflects a future-forward response to how vehicle development is evolving. As OEMs move away from traditional workflows, there is growing demand for engineering services that are tightly integrated with virtualisation tools. This strategic collaboration enables us to jointly address that shift with focus, flexibility and domain depth.

Marc Serughetti, Vice-President, Synopsys, said, “The automotive industry’s transformation to software-defined vehicles requires advanced virtualisation capabilities from silicon to systems. Our leadership enabling automotive electronics digital twins, combined with Tata Elxsi’s engineering scale and practical experience operationalising automotive system design, will simplify the adoption of virtual ECUs and thereby accelerate software development and testing to improve quality and time to market.” 

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India's rapidly evolving mobility sector was the central focus of the 3rd EV & AutoTech Innovation Forum, held at Vivanta, Hinjawadi, Pune, which was organised by Konnect Worldwide Business Media on the theme of ‘Shaping the Future of Mobility.’

The day-long event saw over 300 participants from the automotive stakeholders including EV players, tier-1 suppliers, OEMs, policymakers and tech investors.

The event saw discussions on around the increasing demand for innovative technological features such as connectivity, high-performance computing, driver assistance/autonomous driving & enhanced safety, alongside emerging trends like EVs and stricter efficiency norms. This has led to a growing focus on the role of software in modern vehicles.

Prominent attendees included representatives from Jio, ARAI, Visteon, Harman, Varroc Connect, Tata Motors, Omega Seiki Mobility, MediaTek, Maruti Suzuki India and Stellantis India among others.

Steven Lee, Deputy Director, Intelligent Software Development, MediaTek, said, "India is the fastest-growing connected car market, with a projected CAGR of 18 percent between 2025 and 2030, according to Counterpoint. Government policies, growing presence of global OEMs, seeking alternative sourcing hubs and the rising importance of software in vehicles have together created a strategic opportunity for Indian players to enhance capabilities, accelerate growth and establish India as a global automotive hub. As the sector continues its upward trajectory, it is strategically positioned for transformative growth in the near term, driven by 5G machine-to-machine (M2M) connectivity, sophisticated AI integration and premium Multimedia, surpassing traditional 4G frameworks. At MediaTek, we are leveraging our industry-leading expertise in MediaTek Dimensity Automotive portfolio to drive key capabilities including impressive AI, extensive feature integration, innate energy efficiency and leading connectivity solutions. Our collaborations with OEMs help to deliver immersive, advanced in-vehicle user experiences to reach AI defined cockpit with cybersecurity capabilities and enhanced connectivity.”

Mohan Raju, Vice-President & Vertical Head – IoT, Jio, said, “The connected vehicle ecosystem today is a rapidly evolving landscape where vehicles are not just equipped with internet connectivity but also with advanced cloud applications suites, enabling the user to interact with his environment like home, office, shopping lists etc right from the car. Also, the vice versa i.e. Home2Car is fast becoming a reality which involves the user interacting / controlling his car right from the comfort of his car. Icing on the cake - this interaction is increasingly voice commands powered allowing the user to “Speak with the car in his/ her native Indian Language”.

“We are pioneering this experiential transformation and customer preference shifts by bringing first of its kind innovative solutions in close collaboration with Auto OEMs. This approach is fundamentally changing how vehicles are designed, used, maintained and therefore enhancing the overall value and experience of vehicle ownership for the customers," he said.

At the event, the key sessions explored the convergence of AI-ML, edge computing, connected mobility and technological advancements in electric two-wheeler and SDVs. Fireside chats and panel discussions delved into EV ecosystem development, monetisation models and the critical role of telematics and over-the-air (OTA) updates in delivering a seamless in-car digital experience.

Further contributions came from clean mobility disruptors such as Micelio Discovery Studio and Exponent Energy, who presented groundbreaking models in green mobility and localised innovation.

The forum also featured a technical demo zone by Tier-1 OEMs and live vehicle showcases by Tata Motors, Skoda India, JSW MG Motor and Matter Mobility.

Ujjwala Karle, Senior Deputy Director & Head Technology Group, ARAI, said, “With close to six decades of experience in homologation and standardisation, ARAI has expertise in R&D, testing and validation. ARAI has also developed indigenous technologies in the mobility domain through its expertise and in house innovation. Mass-scaling of the technology in India can be achieved by an integrated approach and a combination of virtual and experiential verification and validation process. We are open to collaborate with the manufacturers in automotive domain in the field of R&D, technology development, testing & validation and engineering services.”

Sivakumar Yeddanapudi, Global Vice-President – Digital Cockpit and Connected Services Products, Visteon, said, "India plays a pivotal role in driving the future of global automotive innovation. At Visteon, we're proud to collaborate with MediaTek and other leading partners to accelerate the transition to software-defined, AI-powered vehicles - delivering advanced cockpit technologies that elevate the driving experience."

The day-long event, themed ‘Hello World, Disrupt the Future’, was powered by MediaTek, a world-leading fabless semiconductor company powering nearly 2 billion connected devices a year, as AutoTech partner and supported by ARAI.

Rahul Sindhwani, CEO, Konnect Worldwide Business Media, concluded, "The third edition of the EV & AutoTech Innovation Forum has reaffirmed our resolve to bring together the best minds in mobility. As electric and software-defined mobility gain momentum, the forum served as a catalyst for actionable dialogue, innovation and ecosystem-level collaboration. We are proud to build India’s most definitive platform for future-ready mobility solutions.”

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Bengaluru-headquartered product engineering and digital services company Tata Technologies has signed a strategic partnership with Emerson, an industrial technology leader of advanced automation solutions, to drive innovation in integrated testing and validation solutions for global players in the automotive, aerospace and commercial vehicle sectors.

As part of the understanding, Tata Technologies will combine its deep expertise in systems engineering, E/E architecture, and mobility platform development with Emerson’s industry-leading, software-connected test and measurement solutions to support next-generation mobility requirements such as software-defined, connected, electric and autonomous vehicles.

Nachiket Paranjpe, President and Head of Automotive Sales, Tata Technologies, said, “We are thrilled to collaborate with Emerson to innovate intelligent, automated testing and validation solutions that address the growing complexity of connected, autonomous and software-defined mobility platforms. This partnership reinforces our commitment to engineering a software-defined future, helping OEMs innovate faster and deliver connected, autonomous and sustainable mobility that delivers a great customer experience.”

Interestingly, in a recent pilot engagement the partners were able to accelerate timeline by 67 percent for a European luxury OEM by developing EV powertrain test rigs in just 5 months. In another project, the partners build a fully automated validation setup for next-gen infotainment heads-up display with over 30,000 test scenarios.

Shitendra Bhattacharya, Country Head and Director, Emerson’s Test and Measurement Business in India, said, “This collaboration represents a powerful synergy between Emerson’s test and measurement innovation and Tata Technologies’ engineering scale. Together, we can deliver end-to-end solutions that help customers reduce complexity and stay ahead in a highly dynamic transportation landscape.”

The partners are also piloting programs in India, Europe and North America.

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German embedded and connected software specialist Elektrobit has unveiled the EB tresos AutoCore Light support integration into modern zonal architectures, which it claims not only reduces development complexity, but also the cost for scalable and cost-effective software for software-defined vehicle (SDV).

The company shared that software-designed mobility is not just about adapting new technology, but also about automakers aligning their present and future needs. This means that the products need to be capable to be scalable as per the customer demand.

EB tresos AutoCore Light is said to meet the demands of peripheral ECUs – cost- and resource-optimised micro-controllers designed for Input/Output (I/O) devices, end nodes and smart sensors and actuators.

With its modular software solutions, Elektrobit promises up to a 30 percent reduction in hardware and R&D costs compared to traditional AUTOSAR Basic software.

EB tresos AutoCore Light seamlessly integrates smart sensors and actuators into automotive Electrical/Electronic (E/E) architectures. This modular approach fosters code reuse, simplifies updates and accelerates development timelines.

For zonal ECUs, EB tresos AutoCore and EB zoneo provides the foundational software. By consolidating functions into these zonal ECUs and standardising peripheral ECUs, manufacturers can significantly reduce hardware complexity and associated R&D expenses. Peripheral ECUs can also leverage smaller microcontrollers, further contributing to cost savings.

EB tresos AutoCore Light utilises widely accepted signal-based communication, avoiding new complexities. It is also ASIL-B ready and CSMS certified, ensuring safe and secure implementation even on constrained hardware. OEMs can further expand functionality with tailored add-on packages like J1939 and DLT, depending on available memory.

Jagan Rajagopalan, Head of Strategy & Portfolio, Elektrobit Automotive, said, “The Software-Defined Vehicle is a complex ecosystem, and EB tresos AutoCore Light offers a smart, efficient entry point for customers aiming to build scalable, future-ready software. Tailored for resource-constrained peripheral ECUs, it breaks away from traditional monolithic architectures with a lightweight, modular design. By building on proven EB tresos AutoCore components, it empowers customers to accelerate development, reduce integration complexity, and confidently scale their SDV strategies.”

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