India reshapes its workforce to plug into the electric vehicle era

TaMo to upskill half its workforce in 5 years; Tamil Nadu teams up with World Bank to fuel the transition

Weak global demand for electric vehicles (EVs) and mounting industry challenges have pushed several automobile (auto) makers to announce job cuts. Last week, American automaker Ford said it would reduce its European workforce by 14 per cent, blaming ongoing losses due to sluggish EV demand, inadequate government support for the transition, and competition from subsidised Chinese rivals.

 

Ford joins Nissan, Stellantis, and General Motors, which have also taken cost-cutting measures as the sector struggles with high EV production costs, making them unaffordable for many consumers.

 

In India, the transition from internal combustion engine (ICE) vehicles to EVs is unfolding differently. Industry experts believe manufacturing jobs will remain unaffected as ICE demand continues to rise alongside economic growth.

 

As the country moves towards greater EV adoption, automakers and state governments are taking proactive steps to avoid job losses by focusing on upskilling the workforce.

 

Tata Motors, Hyundai Motor India, and Mahindra & Mahindra are among the companies leading these efforts, while Tamil Nadu has taken a unique approach by collaborating with World Bank to address job stability and skill development during the shift to EVs.

 

Tata Motors has already trained 20 per cent of its workforce to adapt to the EV transition and aims to upskill half of its employees over the next five years. Industry observers expect both ICE and EV demand to grow simultaneously for at least a decade.

 

“We have set a goal to equip over 50 per cent of our workforce with new-age autotech capabilities in five years. Our strategy focuses on CESS (connected, electric, shared, and sustainable) technologies, combining technical and soft skills. This includes in-house training programmes and partnerships with academic institutions offering certifications in areas like mechatronics, auto electronics, and vehicle communications,” said a senior Tata Motors official.

 

Maruti Suzuki India (MSIL), the passenger vehicle market leader, is gearing up to launch its first EV in early 2025. During 2023-24, the company upskilled 14,194 employees, up from 13,122 the previous year, according to its latest annual report. MSIL has also introduced ‘high-voltage’ training equipment at 100 industrial training institutes to support education in EV and hybrid technologies.

 

In Gujarat, MSIL has partnered the Institute of Advanced Computing and Entrepreneurship to establish an EV Skill Lab. This collaboration focuses on training professionals in battery management systems, power electronics, electronic drivetrains, and charging infrastructure. It also offers students opportunities for internships, apprenticeships, and employment.

 

Hyundai Motor India, preparing to launch the Creta EV, is also investing in workforce development.

 

“Our employees undergo training in EV-related areas through both in-house programmes and collaborations with external institutions. These efforts ensure we are ready to meet evolving customer expectations,” said Gopalakrishnan Chathapuram Sivaramakrishnan, whole-time director and chief manufacturing officer at Hyundai Motor India.

 

Mumbai-based Mahindra & Mahindra (M&M), which is introducing its range of ‘Born Electric’ vehicles, expects EVs to account for 20-30 per cent of its total sales by 2027.

 

Rohit Thakur, chief human resource officer for the auto and farm sector at M&M, said: “The shift to electric-origin vehicles is an opportunity to empower our workforce with future-ready skills. We’ve launched reskilling programmes in EV architecture, battery technology, vehicle electronics, and high-voltage safety. Job rotations provide hands-on experience with both ICE and EV technologies, while specialised training for our front-line workforce focuses on battery handling and advanced manufacturing.”

 

India’s EV market, currently valued at Rs 49,000 crore, is projected to reach Rs 3.18 trillion by 2030, according to a report by the Automotive Component Manufacturers Association of India and Grant Thornton Bharat.

 

Subburathinam P, chief strategy officer at TeamLease Services, does not foresee job losses in manufacturing, as ICE demand is also growing. “The Indian ICE and EV sectors will see capacity expansion for the next five to 10 years due to rising demand. While EVs still make up a tiny percentage of overall sales, almost all players, including established conglomerates and new-age startups, have simultaneously lined up their EV and ICE expansion plans. Companies are focusing on upskilling employees to embrace the EV shift while creating new jobs,” he said.

 

Not just corporates, Tamil Nadu, a key player in India’s auto and EV industries, has collaborated with World Bank to design a road map for job creation and skill development during the ICE-to-EV transition.

 

“The shift to EVs could lead to job losses in certain areas. This initiative aims to counterbalance that by equipping workers with relevant skills,” said a source familiar with the plan. 

 

The future is electric and upskilled

 

EV workforce transformation

 

·         TATA MOTORS: Trained 20% of its workforce for the EV shift, aiming for 50% by 2029. Focuses on CESS technologies

·         MARUTI SUZUKI INDIA: Upskilled 14,194 employees in 2023-24, partnered Gujarat’s IACE for an EV Skill Lab

·         HYUNDAI MOTOR INDIA: Provides in-house and external EV training for employees

·         MAHINDRA & MAHINDRA: Reskilled workforce in EV architecture, battery tech, and high-voltage safety, with hands-on job rotations

 

  India’s EV market

 

•          Valued at Rs 49,000 crore, projected to reach Rs 3.18 trillion by 2030