Indian Automotive Industry Forecasts 70% Workforce Growth in H2 FY25

Synopsis

The Indian automotive sector is projected to expand its workforce by 70% in the second half of FY25, driven by increasing demand for electric vehicles and advanced technology. This growth reflects the industry's significant role in India's economy, with major cities leading in job creation.

Key Takeaways

70 percent workforce growth anticipated in H2 FY25.
Demand for electric vehicles driving hiring.
Specialized roles in technology are in high demand.
Chennai, Mumbai, and Delhi lead in workforce expansion.
82 percent of employers extending working hours.

Bengaluru, Jan 30 (NationPress) The Indian automotive industry, contributing nearly 7 percent to the nation’s GDP, is anticipated to experience a 70 percent increase in workforce during the second half of FY25, according to a recent report.

The sector is witnessing a net employment shift of 8.5 percent, driven by rising consumer demand for electric vehicles (EVs), premium models, and sophisticated, connected cars, as highlighted in the report by TeamLease Services, a leading staffing solutions provider in India.

This heightened demand is prompting organizations to enhance EV production and incorporate cutting-edge technologies, which in turn is generating a strong need for specialized positions such as robotics specialists, software developers, and supply chain managers.

Notably, 70 percent of employers in the sector are planning to grow their workforce, underscoring the industry's positive growth trajectory and its crucial role in the Indian economy.

The analysis of hiring trends shows that Chennai (63 percent), Mumbai (62 percent), and Delhi (61 percent) are the top cities for expansion in current roles.

Regarding new job openings, Gurgaon is at the forefront, with 19 percent of employers indicating growth, followed closely by Mumbai, Indore, and Coimbatore, each at 15 percent, per the report.

“The automotive sector is experiencing a transformation as it adjusts to evolving consumer preferences and technological progress. The emphasis on EVs, connected vehicles, and premium offerings has reshaped the industry's growth narrative and talent needs,” stated Subburathinam P, Chief Operating Officer of TeamLease Services.

Companies are focusing on specialized skills like IoT, AI, and Analytics while optimizing current resources to maintain competitiveness. This dynamic between innovation and workforce strategy positions the sector as a pivotal contributor to India’s economic and employment growth, he noted.

By job function, engineering positions lead hiring intentions at 66 percent, followed by sales at 60 percent and information and communication technology (ICT) roles at 56 percent.

A notable 82 percent of employers in the sector are extending working hours to meet seasonal demands rather than solely increasing their workforce.

This strategy reflects a deliberate effort to balance productivity with cost-effectiveness, especially in a sector characterized by rapid technological evolution and changing market dynamics, the report concluded.