India's Auto Industry Faces Demand for 200K Skilled Workers by 2030 to Achieve 30% EV Adoption Target

NEWS

7/17/20241 min read

The Indian automotive industry will need up to 200,000 skilled workers by 2030 to meet the government's vision of 30% electric vehicle (EV) adoption, as announced by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.

A total investment of ₹13,552 crore is anticipated for hiring and training the necessary workforce. "One of the major challenges the auto industry will encounter is the shortage of skilled manpower capable of working with electric vehicles," said SIAM President Vinod Aggarwal at a workshop focused on empowering an EV-ready workforce in the Indian auto industry. Aggarwal, who is also the MD & CEO of Volvo Eicher Commercial Vehicle Ltd, emphasized the need for specialized skills in battery technology, power electronics, and motor design.

"To stay competitive globally, it is crucial that our workforce is equipped with new skills through upskilling, reskilling, and skilling," Aggarwal added. SIAM Vice President Shailesh Chandra highlighted that by 2030, India will require nearly 100,000 to 200,000 people with specific skills to achieve the government's 30% EV adoption mission. The demand for talent will span both blue-collar and white-collar roles, ranging from manufacturing technicians to PhD scientists and engineers in research and development.

Chandra, who is also the MD of Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd, stated that the talent requirements will cover various disciplines, including electrical and mechanical, chemical, and electronics engineering. According to the 'SIAM EV Skill Gap Study' report, to achieve 100% localization of EV components, India needs to add 30,000 EV-ready workers per year until 2030, up from the current rate of 15,000 per year.

The report revealed that 43% of technical competencies between Internal Combustion Engine (ICE) and EV have minimal overlap, necessitating fresh skill development, while 27% have a high overlap and may require reskilling of existing talent. "The estimated hiring cost would be ₹7,671 crore, while the training cost would be around ₹5,881 crore. The total talent investment is expected to be around ₹13,552 crore," the report stated.