2024 Half-Year Round-Up: Key Workforce and Production Trends in the Indian Automotive Sector

Introduction

The first half of 2024 has shown significant growth and transformation in India’s automotive industry, marked by an increase in workforce size and a rising push towards electric vehicles (EVs) adoption and infrastructure creation. This round-up provides a comprehensive overview of the key trends, workforce changes, and future outlook for the industry.

Industry Overview

• Net Workforce Size Change

The overall automotive industry experienced a net workforce size increase of 7.57%. This positive growth reflects the industry’s resilience and adaptability in a rapidly evolving market. Specifically, the EV and EV infrastructure segment saw a more significant workforce size increase of 9.17%, underscoring the sector’s dynamic expansion and the increasing demand for skilled professionals in this area.

• EV Sales Growth

India achieved a major milestone in the EV market with the sale of over 13 lakh EVs in FY24 by January of this year. According to the Society of Manufacturers of Electric Vehicles (SMEV), the overall EV segment grew by an impressive 158% from the previous year, with 62% of this growth attributed to two-wheelers. This surge in EV sales is driving a higher demand for workforce growth in the EV industry, fueled by premiumization and hyper-competition.

• Diverse Talent Pool

The automotive industry in India is leveraging a diverse talent pool that is available in cities such as Pune, Mumbai, Bangalore, Chennai, and Delhi NCR. Additionally, emerging job locations like Coimbatore and Visakhapatnam are becoming new hotspots for talent acquisition, reflecting the geographical spread and depth of the talent pool in India.

Also Read: How Taggd ramped up EV hiring for one of India’s Biggest automotive manufacturers!

In-Demand Jobs

The rapid evolution of the automotive industry has led to a high demand for specific job roles:

• Green Engineers: Essential for the industry’s shift towards sustainable automotive technologies.
• Software Developers: Focused on developing and maintaining vehicles’ onboard computers as modern vehicles become increasingly reliant on sophisticated software systems.
• Cybersecurity Experts: Crucial for protecting advanced automotive technologies from potential threats, ensuring the safety and security of vehicles and their data.

Future Outlook

• India’s electric vehicle (EV) market is forecasted to hitUS$ 7.09 billion (₹50,000 crore) by 2025.
• The EV finance sector in India is anticipated to reach US$ 50 billion (₹3.7 lakh crore) by 2030, according to NITI Aayog and the Rocky Mountain Institute (RMI).
• With the adoption of advanced technologies and increased sales, automotive companies are offering more competitive compensation packages. This trend is expected to continue as the industry benefits from higher profitability due to increased exports and domestic sales.
• Efforts to address the gender gap are being made by government agencies and automotive companies. By the end of 2024, the percentage of women in the workforce is expected to rise from 33% to 36%.

Conclusion

The automotive industry in India is experiencing a transformative phase, marked by the integration of advanced technologies and a strong focus on sustainability. As we progress through 2024, the emphasis on adaptability, innovation, and ethical business practices will be pivotal in shaping the future landscape of automotive employment.

Taggd is here to support you through this dynamic journey, helping you recruit a future-ready workforce with our data-driven processes and extensive talent pool of skilled professionals across India.

To discuss your hiring needs in greater detail, please schedule a complimentary consultation call with our team of hiring experts by emailing us. We look forward to connecting with you!