The exponential increase in Artificial Intelligence (AI) is generating strong demand for memory chips, which, according to General Motors (GM), will result in higher car prices. AI consumption in global memory production already reaches 32% and is projected to reach 48% by 2028.
This increased demand pressures the prices of DRAM components, which are essential for temporary data storage. Currently, these components cost six times more than they did a year ago. Since all aspects of modern cars, from basic dashboard systems to advanced driving assistants, depend on this type of silicon, manufacturers feel the impact directly.
In conversation with Nikkei Asia, Paul Jacobson, GM's chief financial officer, stated that the automaker forecasts an increase in input costs between US$ 1.5 billion and US$ 2 billion this year. He emphasized that this figure does not yet account for import tariffs, and the cost pressure tends to intensify in the second half of the year.
The consultancy AlixPartners points out that the automotive industry uses approximately 10% of all globally produced DRAM. AI, as the main isolated consumer, is surpassing smartphones and computers in this segment. When data centers and AI consume half of world production, other sectors, including automakers, will have to bear the cost.
In addition to the price increase, there is a scarcity problem, as chip producers cannot meet the growing demand rate.
Faced with this scenario, manufacturers are adopting preventive measures. GM and Ford, along with seven other parts suppliers such as Denso and Astemo, recently signed long-term supply agreements with Micron. Automakers are also seeking to stockpile DRAM before the scarcity expected next year.
GM has already adjusted its price estimate for North America, moving from an expectation of stability or a slight decrease of 0.3% to a projected average increase of 0.3% in the value of new vehicles this year. The company itself coined the term 'chipflation' to describe this inflationary phenomenon of chips.
Chinese manufacturers feel the impact more acutely, as their advanced electrified vehicles use a greater quantity of chips compared to many Western options. The brokerage Huayuan Securities calculated that the memory cost in cars manufactured in China exceeded US$ 70 per unit in November 2025, while in Japanese models, this value was around US$ 30. Some Chinese brands have already begun passing on these costs, raising the price of optional driving assistance packages.
A surge in Initial Public Offerings (IPOs) from over a dozen firms is expected next month, with Zepto, Truhome Finance, and the logistics platform Shiprocket preparing to enter the stock market. These new listings are projected by brokers to collectively raise over 25,000 crore rupees.
According to Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus Capital, companies that previously held back are now moving forward with their IPO plans amid market stabilization and improved investor sentiment.
Among the largest offerings, Zepto intends to raise up to 8,010 crore rupees through a fresh issue, as well as sell up to 11.34 crore shares via an OFS mechanism. Financial company Truhome has offered an IPO worth 3,000 crore rupees, which will consist of a fresh issue of up to 1,500 crore rupees and OFS in equal amounts.
Furthermore, Elevate Campuses plans to raise 2,550 crore rupees solely through a fresh issue, while Shiprocket has applied for an IPO valued at 2,342.35 crore rupees, including a fresh issue of up to 1,100 crore rupees and an OFS of 1,242.35 crore rupees.
Other companies preparing to go public include Innovatiview India (up to 2,000 crore rupees, entirely through OFS) and Milky Mist Dairy Food (1,553 crore rupees). Also scheduled for initial offerings are Dhoot Transmission, ARCIL (Asset Reconstruction Company India Ltd), Ardee Industries, Gaja Alternative Asset Management, Rays of Belief, Hy-Tech Engineers, Shankesh Jewellers, and Learnfluence Education.
This influx of new offerings occurs against a backdrop of sustained activity in the primary market, reflecting improved investor sentiment and high demand for new listings. Market participants anticipate that IPO activity will remain high as companies seek to capitalize on favorable conditions for fundraising.
In the current year, 36 companies have already launched their IPOs, including nine that debuted in the primary market this month. Moreover, Manipal Health Enterprises and Juniper Green Energy have scheduled their public offerings for July 29 and July 30, respectively, and MV Electrosystems is also set to launch its IPO next week.
Shah noted that the long-term prospects for the Indian IPO market remain strong despite periodic volatility. He emphasized that the primary market has undergone a structural transformation where equities are becoming an increasingly preferred source of capital for growth. Although tactical pauses due to market fluctuations are inevitable, the fundamental potential remains very high. He forecasts that India could raise around $20 billion through IPOs in the current calendar year.
He added that well-valued IPOs are likely to continue delivering high returns, whereas aggressively priced offerings may show limited growth as investors become more selective rather than simply blindly optimistic.
Maruti Suzuki India Ltd (MSIL) intends to sell approximately 900,000 Compressed Natural Gas (CNG) vehicles during the current fiscal year. This figure represents an increase of nearly 30% compared to the previous period, attributed to rising demand for such vehicles following the outbreak of the war in the Middle East.
According to company senior executive Marto Banerjee, the demand for CNG vehicles has expanded beyond just small passenger cars and vans, showing growth even in the company's SUV segment. Banerjee told PTI that 220,000 units of CNG vehicles were sold in the first quarter of the current fiscal year, which is 58% more than in the same quarter last year.
Banerjee explained that the sharp rise in demand for CNG vehicles is due to the increase in fuel prices following the war in the Middle East. Considering the sales pace in the first quarter, the company has set a target of approximately 900,000 units for the entire year.
Currently, Maruti Suzuki India offers 15 CNG models on the domestic market, including light commercial vehicles. In the 2025-26 fiscal year, the company sold over 700,000 CNG vehicles. Banerjee noted that the demand for CNG is not limited to small cars, vans, and the utility vehicle Ertiga; there is also high demand for CNG in the SUV segment.
He added that in their Victorisv SUV, over 50% of sales are for the variant equipped with an underbody CNG tank. Taking this trend into account, the company has also introduced an 'underbody CNG' system in the recently launched updated version of the compact crossover Brezza. The new Brezza S-CNG is equipped with idle start-stop technology and a new six-speed manual transmission, ensuring improved fuel efficiency of 26.9 km/kg. Furthermore, last month, the share of CNG vehicles in the company's total sales volume was 42%.
The South African Social Security Agency (SASSA) has notified social grant recipients about the introduction of a fourth payment day for those flagged for grant checks or eLife certification. The agency warns that non-compliance may lead to payment suspension.
SASSA stated that recipients who received their benefits on July 7—the fourth payment day in July—are required to visit the nearest SASSA office to complete the verification process and prevent disruptions in future payments.
The national representative of SASSA, Paseka Letsatsi, noted that the agency observed some recipients were still unaware of the designated additional payment day. He commented: 'The agency noted that some recipients are still unfamiliar with the fourth payment day and often worry when their benefit is not paid within the usual three-day payment cycle, even if they received a notification.'
Letsatsi explained that SASSA sends mass SMS notifications to recipients selected for grant checks and eLife certification before scheduling their payments for the fourth day. He gave an example from July: 'This month, for instance, we paid old age grants on July 2, disability grants on July 3, and child grants on July 6. Recipients who still required social grant verification or eLife certification received payment on July 7, which we call the fourth payment day.'
SASSA strongly urged recipients to respond promptly to contact regarding checks and to keep their personal details up to date. Letsatsi added: 'We would also like to ask our recipients to inform SASSA of any changes in contact details or residential addresses, as we use the information collected when a person first applied for the benefit in our system.'
According to SASSA, social grant checks and eLife certification are conducted in accordance with the Social Assistance Act and aim to confirm the continued eligibility of grant recipients. This process also helps exclude payments to deceased or ineligible persons, identify fraud, and ensure that public funds reach qualified recipients. The agency emphasized that regular checks play a key role in maintaining the integrity of the social assistance system while improving communication and service delivery through recipient data updates.
SASSA confirmed the following grant payment dates for August: Old Age Grants—Tuesday, August 4; Disability Grants—Wednesday, August 5; Child Grants—Thursday, August 6; Fourth Payment Day for recipients participating in checks—Friday, August 7. The agency stated its commitment to paying benefits to all eligible recipients while strengthening oversight measures to ensure the sustainability and reliability of the social security system.
