Revving Up Recruitment: Key Trends Shaping Auto Hiring In 2024

India, with its formidable expertise in manufacturing auto components, stands as a pivotal player in the global automotive market. Fueled by ambitious visions, the Indian government aspires to propel the country’s automotive industry to claim the title of the world’s third-largest by 2030. 

In a sector boasting a substantial $108 billion market size and contributing 7.1% to the Indian economy, the automotive industry is a driving force behind the nation’s economic prowess. 

With a workforce comprising a staggering 37 million individuals and experiencing a notable 10% year-on-year change in hiring for 2024, the industry is in the midst of transformative growth. Additionally, according to Taggd’s India Decoding Jobs Report 2024, there is a 20% expected hiring intent for this sector during this year.

Amit Sharma Sr. HR Leader and former VP & Head – People & Culture, Volvo Group India observed, “Going ahead I expect a bullish growth in the manufacturing segment with a big focus on infrastructure development and consequential reduction in the logistics costs.”

In this article, we delve into the evolving market trends within the automotive sector, explore the challenges faced, and provide insightful best practices to navigate and overcome these challenges, offering a comprehensive overview of the landscape that is crucial for industry professionals and stakeholders alike.

1. Green Engineers in High Demand

Taggd’s India Decoding Jobs Report 2024 estimates indicate a remarkable growth of over 36% in the clean energy sector between 2024 and 2025. 

With the automotive industry increasingly focusing on sustainability, professionals well-versed in eco-friendly technologies and electric propulsion systems are in high demand.

2. Enhanced Compensation

The adoption of advanced technologies, resulting in increased sales and cost reductions, has led automotive companies to offer more competitive compensation packages. 

This trend is expected to gain momentum as the industry witnesses heightened profitability from increased auto exports along with domestic sales. 

3. Diversity Initiatives

Recognizing the pronounced gender gap, both government agencies and auto companies are actively addressing diversity concerns within the industry. 

Projections indicate a positive shift in the workforce by 2024, with the proportion of women expected to increase from 33% to 36%. 

4. Building a Strong Employer Brand

Amidst intensifying competition for top talent, establishing a robust employer brand is pivotal for automotive companies. Organizations prioritizing a positive work culture, career development opportunities, and a commitment to sustainability are better positioned to attract and retain skilled professionals. 

1. Skill Shortage

The automotive industry confronts a significant challenge in the form of a shortage of skilled professionals, particularly in critical areas such as EV battery engineering, powertrain engineering, and software development. 

The demand for expertise in these specialized fields is outpacing the available talent pool, posing a hurdle to innovation and growth within the sector.

2. High Attrition Rates

One of the pressing challenges for automotive companies is the prevalence of high attrition rates, with an anticipated rate of 14.6%. 

To mitigate this, companies must adopt strategic measures aimed at improving employee engagement, providing competitive compensation packages, and fostering positive work environments. 

3. Global Competition

The automotive industry faces intense competition on a global scale, requiring companies to continually innovate and enhance their offerings to maintain relevance and market share. 

The entry of new players and the globalization of the automotive market intensify competition, necessitating agile strategies for product development, cost management, and market positioning to stay competitive on the world stage. 

1. Partnering with Educational Institutions

To address the skill shortage in critical areas like EV battery engineering, powertrain engineering, and software development, automotive companies can establish partnerships with educational institutions. 

Collaborating with universities and technical schools allows companies to actively shape curricula, providing students with industry-relevant skills and fostering a pipeline of talent that aligns with the evolving needs of the automotive sector.

2. Promoting a Culture of Innovation

Combating high attrition rates requires cultivating a workplace culture that values innovation and continuous learning. Companies can incentivize employees to contribute ideas, experiment with new technologies, and engage in professional development. 

Fostering an environment where creativity is encouraged not only enhances job satisfaction but also attracts and retains top talent seeking dynamic and forward-thinking workplaces.

3. Industry Tie-ups

Collaborative efforts with other companies within the automotive industry can help mitigate challenges such as skill shortages and global competition. Strategic industry tie-ups enable the sharing of expertise, resources, and best practices. 

Joint ventures and collaborations can facilitate access to a broader talent pool, shared research and development initiatives, and collective efforts to navigate global market dynamics, enhancing the industry’s collective strength.

4. Raising Awareness about Industry Growth

To attract and retain skilled professionals, automotive companies should actively communicate the industry’s substantial growth prospects. 

Initiatives such as educational campaigns, industry events, and outreach programs can help raise awareness about the automotive sector’s significant contributions to economic development and job opportunities. 

By highlighting the industry’s mammoth growth potential, companies can inspire talent to envision a long-term and rewarding career within the automotive landscape.

India’s automotive industry is poised to emerge as a global powerhouse, showcasing remarkable growth as evidenced by the recruitment of 21,123 employees out of the anticipated 1.48 lakh fresh jobs in the sector. 

However, the prevailing skill-gap poses a significant challenge. Effectively addressing this gap necessitates a synergistic effort involving educational institutions, automotive companies, and government authorities. 

Beyond the insights, the India Decoding Jobs 2024 report furnishes additional data-driven actionable inputs and trends for the year. 

These insights serve as valuable tools for recruiters in the Automotive sector, enabling them to make more prompt and effective decisions in crafting a workforce and organizational culture poised for the challenges of the future. 

The comprehensive nature of the report is a result of meticulously conducted surveys and profound discussions with respected talent acquisition professionals across various sectors in India. 

Over time, it has evolved into a favored resource, providing indispensable data and inputs that significantly contribute to informed recruitment decision-making processes.

To download your exclusive copy of the report, click here or write to us at contact@taggd.in.