Does India have enough skilled workers to make more vehicles? Explained
A new report by BCG and ACMA highlights a significant skills gap in India's automotive sector as it shifts toward electric and automated manufacturing. The Pune automotive cluster alone requires 27,000 new skilled workers annually, while local training institutions currently produce only 5,000.
Why it matters
This labor shortage poses a potential bottleneck for India's goal of significantly increasing vehicle production by 2030.
India’s automobile industry is entering a period of expansion while the nature of work inside factories is changing. The Boston Consulting Group (BCG) and Automotive Component Manufacturers Association of India (ACMA) estimate that annual vehicle production could increase from about 30–35 million units in FY25 to 50–55 million by 2030. The auto-component industry is targeting a turnover of about $200 billion by 2030, compared with about $86 billion currently.
At the same time, factories are adopting electric powertrains, electronics, automation, connected technologies and advanced manufacturing systems.
This is changing the skills that manufacturers need. Alongside conventional trades such as machining, welding, assembly and maintenance, companies increasingly need people trained in areas such as electrical and electronics, mechatronics, robotics, battery systems and automated equipment.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in