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The Acceleration From Traditional to Electric in the Automotive Industry

High impact hiring
By Taggd Editorial Team

February 23, 2023


2 min read

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India’s accelerated shift to electric vehicles is a reflection of its UN COP26 commitment to achieve a net-zero emissions economy by 2070. The over-reliance on fossil fuel automobiles has caused irreparable environmental impact, and it is essential that we make a swift transition to alternative energy vehicles to reduce the environmental impact of automobiles.

The global auto industry is making a concerted effort to transition to electric vehicles, with many major car manufacturers, such as TATA Motors and M&M, laying out ambitious plans to introduce full-fledged assembly lines for electric cars. Electric cars have already been launched and are witnessing steady adoption among consumers. Reports indicate that by 2040, electric cars are projected to account for two-thirds of all car sales globally.

Shift to Electric + Evolution in the Job Market in India

The Indian government is fast-tracking electric-car investment policies and is anticipating investments between $8-10 billion in the space this year By 2026, India’s automotive industry is expected to be one of the world’s leading adopters of cutting-edge electric technology, engineering expertise, and manufacturing capabilities as well as being a significant exporter.

A key discussion point regarding the shift from traditional fossil fuels to electric vehicles is how it will affect the automotive components industry and the employment opportunities associated with it. Both technologies require a distinct skill set and the ecosystem needs to be aligned to meet those needs.

It is estimated that EV companies will create up to 7.5 lakh new jobs in the next five years. Measures are being taken to foster a supportive environment for companies and investors, as well as creating opportunities for skilled and unskilled labor to sustain the fast expansion of the automotive sector. The schemes include —

● Bharat NCAP for vehicle safety assessment
● EV charging stations under the FAME India Scheme I & II
● Battery swapping policy
● Incentives to automotive companies linked to production

On the workforce front, the government’s apprenticeship scheme has also enabled the industry to effectively recruit and train new talent. The increased complexity of the new automobile standards have pushed both employers and employees to stay ahead of the curve by focusing on upskilling and reskilling.

We extensively covered the auto-industry in our Decoding Jobs 2023 Report. Here are some key points concerning the hiring landscape in the industry:

Skills and Roles in Demand
More specialized roles are coming up in 2023 compared to 2022, where the demand for AI/ML and big data analysis will be high. Preference will be for candidates with expertise in fuel cells, system engineering, program management, and battery management- all skills needed to effect a shift to electric mobility.

Hiring in Tier-II Cities
Automotive companies are also going beyond tier-I cities to hire the right talents across production, manufacturing, and management. There is a 66% hiring intent in tier-II cities compared to 44% in tier-I cities.

Women in EV
Additionally, the auto industry has seen an increase in the hiring of women, from 21% in 2022 to 24% in 2023, particularly for technological roles, spurred on by the growing demand for sustainable mobility solutions.

Challenges in the Indian Automotive Sector

As the demand for electric vehicles rapidly increases, support infrastructures, such as charging stations, need to be prioritized to keep up with the growing adoption of EVs, especially two-wheelers and three-wheelers. However, there are a few challenges.

● Liquidity crisis: The liquidity crisis pervading the economy has resulted in reduced access to financing for new car buyers, adversely impacting the sector. Although the government is subsidizing EV purchases, the costs are still rather high for common Indians.
● Skilled talent: The growing shortage of skilled talent in the space is a mid-term challenge that needs to be resolved in time to make sure that India capitalizes this EV wave.
● Safety rules: EVs are under stringent regulatory and public scrutiny due to instances of battery fires, and the industry needs to make sure that they adhere to the highest safety standards to ensure mass adoption.

The journey to a more sustainable future is never easy, but it is one that must be taken if we are to ensure our planet remains habitable for generations to come.

The automotive industry is rapidly increasing its workforce to speed up the production of electric vehicles and meet the expected demand with a steady supply via domestic manufacturing. There will be a 30% hiring intent in the automotive industry in 2023. Hiring intent for 2022-2023 is anticipated to remain stable, with 22% of openings available for fresher candidates. This surge in employment opportunities has caused an increase in job openings within both the production and manufacturing sectors.

The transition to EV is just one way we can reduce our environmental impact and pave the way for a greener world. Electric vehicles (EVs) could play a significant role in helping us to meet this ambitious goal of reducing carbon emissions by 1 billion tonnes by 2030.

Download the Decoding Jobs India 2023 report now

By Vishal Bhardwaj

Chief Digital Transformation