Employment Potential In EV Sector In India: Statiq Reports
The Indian electric vehicle market size is estimated to be valued at USD 2 billion by 2023 and USD 7.09 billion by 2025. By 2030, the EV market is anticipated to reach USD 10 million in annual sales, growing at a CAGR of 49 per cent between 2022 and 2030 (Invest India 2022).
Currently, the automotive sector employs 37 million people the EV industry could add 10 million direct jobs by 2030 which would create 50 million indirect jobs in the sector (Invest India 2022). The EV push in India creates a segway for business opportunities in for three major industries- mobility, infrastructure, and energy. Leading EV players have hired 2,236 employees over the last six months.
Reputable companies like Bajaj, TVS, and Honda Suzuki is making use of their dependable channel networks despite a surge in new-age companies. In addition to the current models, OEMs including Tata, Mahindra, and Hyundai, among others, are predicted to release 30 to 40 new EVs by 2025, requiring the need for analysts and product designers.
In addition to the expanding number of available positions in the industry, semiconductor firms like Intel are also looking for engineers with experience in EV powertrains. ESPs, most notably TataElxsi, offer IT and engineering R&D-related services and support, necessitating the allocation of resources for modelling and testing for some of the world's largest carmakers.
The employment landscape holds immense potential due to the ripple effect that is causing the industry as a whole to grow. Skilling interventions will ensure that the EV industry has a workforce that is equipped to handle the unique challenges and opportunities presented by this technology. Additionally, skilling can help to increase the efficiency and competitiveness of the EV sector, as well as promote the level of innovation and progress in the industry.
Why is skill development important
The EV transition across the world is giving rise to a technological transformation which requires both reskilling and training the existing and new workers. Skilling the workforce will play an important role in not only overcoming layoffs and job losses but will also contribute towards a sustainable EV industry in the long-term leading to fiscal growth.
Currently the EV sector faces certain challenges, leading to talent skill gaps. Some of these challenges include the following:
Niche Skills - The EV sector requires niche skills that lie at the cusp of connectivity & AI enabled technology in the automotive space.
Course Curriculums - There are limited courses in number or outdated in nature that exist in the market. The percentage of top institutes offering courses related to the EV industry is negligible.
Industry Standards - Since EV is still in an emerging phase, there is a lack of industry standards. Without standardised charging infrastructure, the industry cannot sustain in the long run. Similarly, there is no standards set on what educational requirements are necessary for entering the industry.
Growth Potential - The EV sector is in its growth phase and holds greater future potential, to meet the talent supply requirements it is essential to have a workforce which is ready for this transition.
Women Participation - The EV industry and the automobile industry as a whole is male dominated and hardly has any women representatives. Additionally, there has been a lack of opportunities for women which needs to be solved for.
Current initiatives in India
Approximately 20 states have come up with a draft or final version of their electric vehicle policy with varying schemes but ultimately aimed at transitioning from ICE to EVs. Some notable aspects of state policies include Andhra Pradesh, Kerala, Delhi, and Karnataka.
Linking national and sectoral training strategies will play an important role. There is a need for the entire ecosystem (OEMs, Centre & States, training institutes and others) to come together, collaborate and move towards an effective and just transition. Additionally, to ensure a just transition, it is important to make sure that regional automotive industries continue to grow and workers with jobs at risk are supported with compensation programs or alternate employment opportunities.
