The automotive industry is experiencing one of the most profound transformations in its history. The rise of electric vehicles (EVs), automation, and connected technologies is reshaping not only how vehicles are made but also the skills required to build and maintain them. In India, where the automotive sector contributes significantly to the economy, the challenge lies in ensuring that the workforce is equipped with the skills necessary to navigate this new landscape.
1. The Expanding Indian Automotive Industry: A Growth Perspective
India's automotive industry is one of the largest in the world. According to the Society of Indian Automobile Manufacturers (SIAM), the industry contributes 7.1 per cent to the nation's GDP and provides employment to over 37 million people directly and indirectly. With India aiming to become a global hub for electric vehicle (EV) manufacturing and export, the demand for skilled workers in areas such as EV technology, battery management, and autonomous driving systems is growing rapidly.
The Indian government’s ambitious FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, with an outlay of INR 10,000 crore, further underscores the importance of developing skilled talent in EVs.
2. The Evolution of the Automotive Workforce
The transition from internal combustion engines (ICE) to electric vehicles, combined with the growing influence of automation, is dramatically changing the automotive industry. Traditionally, the sector relied heavily on skills related to mechanical engineering and assembly line operations. However, the rise of mechatronics, embedded systems, robotics, and artificial intelligence (AI) is creating new job roles that require workers to acquire cutting-edge skills.
According to the International Labour Organization (ILO), while the transition to EVs could lead to job losses in some traditional roles, it also has the potential to create millions of new opportunities in sectors like battery technology and renewable energy.
3. Bridging the Skill Gap Through Specialised Training Programs
The automotive sector is witnessing a skills gap, especially in areas like EV technology, digital manufacturing, and autonomous vehicle testing. A report by KPMG India highlighted that while there are nearly 1.5 million unfilled positions globally in advanced automotive roles, India's automotive sector faces a major skills shortage in areas like AI, robotics, and EV design.
4. Ensuring Inclusivity in Skilling: Women in the Automotive Sector
Skilling programs provide women with the technical expertise and certifications necessary to thrive in the automotive workforce, opening doors to both employment and leadership opportunities. Companies like Tata Motors and Hero MotoCorp are increasingly recognising the business value of gender diversity, which fosters innovation and enhances global competitiveness. By integrating more women into the workforce, the automotive sector not only becomes more inclusive but also better positioned to tackle technological advancements and industry challenges.
5. Preparing for the Electric Vehicle Revolution
The rise of electric vehicles is perhaps the most significant change the automotive industry has seen in decades. With the Indian government pushing for the adoption of EVs through initiatives like FAME II, the demand for skilled workers in EV-related roles is growing rapidly. According to Frost & Sullivan, the EV market in India is expected to reach 3.5 million units by 2030, creating a need for professionals skilled in battery management, power electronics, and charging infrastructure.
6. The Road Ahead: Vision for Skilling
The road ahead for the automotive industry is centred on creating a skilled, inclusive, and future-ready workforce capable of driving growth and innovation. A key focus should be the training of 8 lakh gig economy workers by 2030, many of whom will be engaged in electric vehicle (EV) roles and last-mile delivery services. This aligns with the Indian government’s vision of accelerating EV adoption while providing new employment opportunities, especially for socially and economically disadvantaged communities. The industry’s evolution toward electrification, automation, and sustainability will require collaborative efforts through public-private partnerships to ensure skilling programs are adaptable and aligned with the industry's future needs.
Conclusion
As the automotive industry transitions into a new era of digitalisation, electrification, and automation, skilling will be the bedrock on which this transformation stands. A workforce equipped with the right skills is not only crucial for the sector’s growth but also for sustaining its global competitiveness.
As India aims to be a future hub for electric vehicles, the skilling initiatives will play a critical role in meeting the industry's rapidly evolving needs. A skilled workforce is no longer a luxury; it’s a necessity.
The author is the CEO of Automotive Skill Development Council (ASDC)
.jpg)
