The Indian automotive sector, which accounts for around 7% of the country’s GDP, is expected to see a 70% employment expansion in the second half of FY25, according to a report released on Thursday.
The automotive sector is experiencing an 8.5% net employment change, with hiring momentum fuelled by rising consumer interest in electric vehicles (EVs), premium models, and high-tech, connected automobiles, according to a report by TeamLease Services, India’s leading staffing solutions provider.
This surge in demand is driving companies to increase EV production and integrate innovative technology, resulting in a strong demand for specialised skills such as robotics experts, software engineers, and supply chain managers.
A considerable 70% of employers in the sector intend to increase their staff, demonstrating the industry’s growth trajectory and critical position in the Indian economy.
The geographical distribution of hiring trends shows that Chennai (63%), Mumbai (62%), and Delhi (61%), are the main cities for workforce expansion in existing roles.
According to the report, Gurgaon led in new job prospects, with 19% of firms suggesting expansion, followed by Mumbai, Indore, and Coimbatore, each with 15%.
“The automotive industry is undergoing transformation as it adjusts to shifting consumer tastes and technology improvements. “The emphasis on EVs, connected vehicles, and premium models has reshaped the industry’s growth narrative and talent requirements,” stated Subburathinam P, Chief Operating Officer of TeamLease Services.
To remain competitive, businesses are investing in specialised skill sets such as IoT, AI, and analytics, as well as optimising current resources. This dynamic interplay of innovation and labour planning places the industry as a significant engine of India’s economic and employment growth, he stated.
Engineering roles have the highest hiring intent (66%), followed by sales (60%), and information and communication technology (ICT) (56%).
Instead of just growing their personnel, 82% of firms in the sector are extending working hours to meet seasonal demand.
According to the report, this strategy indicates a deliberate effort to strike a balance between productivity and cost efficiency, especially in a sector distinguished by rapid technical improvements and changing market dynamics.
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