A significant 82% of employers in the sector are extending working hours to meet seasonal demand rather than solely expanding their workforce.The Indian automotive sector, which contributes approximately 7% to the country's GDP, is likely to see 70% workforce expansion in the second half of FY25, a report showed on Thursday.
The automotive sector is experiencing a net employment change of 8.5%, with hiring momentum fuelled by growing consumer interest in electric vehicles (EVs), premium models, and high-tech, connected automobiles, said the report by TeamLease Services, India's premier staffing solutions company.
This surge in demand is compelling companies to ramp up EV production and integrate advanced technologies, creating a robust demand for specialised roles such as robotics experts, software engineers, and supply chain managers.
A significant 70% of employers in the sector plan to expand their workforce, showcasing the industry's growth trajectory and its pivotal role in the Indian economy.
The geographical distribution of hiring trends reveals that Chennai (63%), Mumbai (62%), and Delhi (61%) are the leading cities for workforce expansion in existing roles.
For new job opportunities, Gurgaon took the lead, with 19% of employers indicating expansion, followed closely by Mumbai, Indore, and Coimbatore, each at 15%, according to the report.
"The automotive sector is witnessing a shift as it adapts to changing consumer preferences and technological advancements. The focus on EVs, connected vehicles, and premium models has redefined the industry's growth narrative and talent requirements," said Subburathinam P, Chief Operating Officer, TeamLease Services.
Companies are investing in specialized skill sets like IoT, AI and Analytics while optimizing existing resources to stay competitive. This dynamic interplay between innovation and workforce strategy positions the sector as a key driver of India's economic and employment growth, he mentioned.
By function, engineering roles dominate hiring intent at 66%, followed by sales (60%) and information and communication technology (ICT) roles (56%).
A significant 82% of employers in the sector are extending working hours to meet seasonal demand rather than solely expanding their workforce.
This approach reflects a conscious effort to balance productivity with cost efficiency, particularly in a sector marked by rapid technological advancements and shifting market dynamics, said the report.
