Industry
India's electric vehicle boom: Where is the missing talent?
Summary
- Companies are rolling out multi-pronged strategies – from hiring expats to enrolling their employees in training programs that focus on electric vehicle manufacturing skills
The Indian auto sector has stepped on the gas pedal in electric vehicle production; however, the scarcity of talent has led to rampant poaching within the sector. Companies are rolling out multi-pronged strategies – from hiring expats to enrolling their employees in training programs that focus on electric vehicle manufacturing skills.
How bad is the crisis?
There are about 2.8 million EVs in India and the market is expected to boom at 94.4% CAGR by 2030. However, the companies are concerned about the scarcity of talent since the pace of production is far higher than the time taken to upskill the workforce.
“There is a huge shortage of talent in the software, AI, connected, electric, shared and safe (CESS) EV space across the auto industry. It will take a few more years to bridge the gap but until that time there is a war for talent in these specific areas," said Sitaram Kandi, vice president-HR, passenger vehicles and electric vehicles at Tata Motors.
According to a report by the Indian Venture and Alternate Capital Association (IVCA) along with EY and IndusLaw done in 2022, the EV business will create more than 10 million direct jobs and 50 million indirect jobs by 2030.
What are firms doing to hire lateral talent?
Automakers are now hiring from allied sectors like electronic management solutions. While the talent shortage affects all levels, there is notably strong demand for middle management positions within the EV sector.
The auto sector overall has seen a high amount of attrition. According to recruiters, candidates in the ₹10 lakh - ₹35 lakh salary range are sought after. During a job change in the auto sector, one can expect a 25% salary increase, which can rise to 50% for those with EV-specific experience.
Headhunters are witnessing a surge in demand as automakers diversify their EV product lines. Technical talent from South Korea, Japan, the US, and Europe is being recruited, with salaries crossing the one-million-dollar mark, making the Indian EV market an attractive bet for global EV talent.
Who is in demand?
EV manufacturers require experts who possess a deep understanding of cell chemistry, module architecture, and battery pack design, as these factors play crucial roles in the industry. Engineers with backgrounds in electrochemistry and electrical architecture are in great demand.
What are firms doing to upskill talent?
Automakers including component manufacturers are creating training modules, research centres, and forming partnerships with universities to reduce their future reliance on external hiring from the market.
Mahindra & Mahindra has bolstered its talent acquisition and retention efforts by establishing a motor and battery testing unit and consolidating its MRV (Mahindra Research Valley) and Mahindra SUV Proving Track for EV development under one umbrella.
Ather Energy, an electric two-wheeler start-up boasting a nearly 1000-member R&D team, one of the largest in the sector in the country, says the key is to "build talent", instead of "buying it" to combat skill shortages for the long term.
Some like Tata Motors aim to train about 50% of their workforce with new-age auto-tech capabilities within five years and the firm has mapped its employees across levels. It has tied up with universities providing an opportunity for individuals working in factories who obtained mechanical engineering degrees several decades ago to acquire EV-related skillsets.
How are companies training indirect workforce?
Automakers are coming up with apprentice programs for their workforce who can join the company as contract staffers, get trained in software, battery, connected tech, batteries, motors, and high-voltage systems etc and can be moved onto direct employment roles as well. Companies are also expected to adopt gig workers trained in auto design and will work on project basis.
