Auto suppliers flag talent shortages as EV shift lifts demand for skilled labour

Sixty-one percent of Indian auto-component makers cite manpower shortages as a major disruption. ACMA and BCG say EV production, automation and domestic battery manufacturing will intensify demand for electronics, software, robotics and mechatronics talent, despite a projected 7.2 million direct manufacturing jobs by 2040.

— Source publishedWed, 2 Sept, 2026, 12:39 IST·First seen Wed, 2 Sept, 2026, 12:43 IST·Source BL · Consumer & Economy

What happened

Indian auto suppliers face severe labour and advanced-skills shortages, constraining OEM production. BCG-ACMA urges pooled training and government support as EV, automation and domestic battery manufacturing raise demand for electronics, software, robotics and mechatronics talent.

Key facts

  • 61% of auto-component makers cite manpower shortages as a major disruption
  • EV transition could support 7.2 million direct manufacturing jobs by 2040 with domestic battery-cell production
  • Industry spends an estimated ₹1,000 crore annually on skilling
  • Pune automotive ecosystem employs about 160,000 people
  • Pune needs roughly 27,000 new skilled workers annually but produces around 5,000 trained completers
  • Management attrition is 18-20%
  • Bajaj said disruptions cost production opportunities equal to roughly 10% of potential quarterly volume
  • 9 in 10 surveyed companies are investing in automation
  • One manufacturer earmarked over ₹40 crore for automation
  • Domestic battery-cell manufacturing could add nearly 2.9 million direct jobs
  • Employment turns positive once domestic battery manufacturing exceeds 25%

Why this matters

Strategic partnerships or acquisitions in workforce training, engineering services, industrial automation and battery-electronics capabilities can help suppliers secure scarce skills and accelerate EV readiness.

What to watch

  • Wage growth and attrition rates for automotive electronics, battery, robotics and mechatronics roles.
  • Announcements of new battery-cell, battery-pack, semiconductor, power-electronics and EV-component plants versus hiring fulfillment rates.
  • ACMA, SIAM and government data on apprenticeship enrollment, ITI placements and EV-specific certifications.
  • Supplier delivery delays, quality recalls, capacity-utilization constraints and increased dependence on imported EV components.
  • State-level incentives for skilling, labor mobility, industrial housing and vocational partnerships in auto manufacturing hubs.
  • Automotive suppliers will raise wages, retention incentives and lateral hiring for EV, electronics, software and automation roles.
  • Large OEMs will increasingly tie supplier development programs to workforce certification, productivity and quality metrics.
  • Component makers will expand partnerships with ITIs, engineering colleges and private training providers near manufacturing clusters.
  • Procurement teams will favor suppliers with proven automation capability and stable skilled-workforce pipelines.
  • Retail demand for affordable EVs may face slower model launches or higher vehicle prices if supplier labor costs and localization delays persist.

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