India's automotive industry is becoming increasingly software- and electronics-driven. As new vehicle technologies gain momentum, the skills required across engineering, manufacturing and operations are evolving alongside them.
"Five years ago, automotive hiring was centered on production, quality, maintenance, tooling, supply chain and plant HR. While these jobs remain important, the strongest growth today is in areas such as EV powertrains, embedded software, battery systems, ADAS, telematics, cybersecurity, data analytics and digital manufacturing," says Rohet Ramesh, Director of staffing solutions provider Layam Group.
The shift is taking place alongside continued industry growth. India recorded vehicle sales of approximately 2.83 crore units in FY26, while EV registrations reached around 2.43 million units, taking EV penetration to 6.5%. As technology content within vehicles increases, demand for specialised engineering capabilities is rising alongside it.
According to Ramesh, the change reflects a broader evolution in the automotive sector. Manufacturers are increasingly seeking professionals who can work across mechanical, electrical, electronics and software domains, rather than within traditional discipline silos.
Much of the shift can be traced to the emergence of software-defined vehicles and increasingly sophisticated electronics architectures. Historically, automotive companies hired primarily for mechanical and manufacturing disciplines. Today, they are adding capabilities that were once associated more closely with technology companies.
Demand is growing for embedded software engineers, vehicle software architects, cybersecurity specialists, ADAS validation professionals, functional-safety engineers and connected-vehicle experts. On the electrification side, battery-pack designers, battery-management-system engineers, thermal-management specialists and power-electronics professionals are becoming increasingly important.
The result "is a more specialised hiring environment". "Companies are no longer simply looking for a mechanical engineer or an electrical engineer. They are increasingly looking for specific capabilities such as BMS testing, embedded software development, CAN protocols, battery diagnostics or sensor integration," says Ramesh.
The trend is visible across OEMs, suppliers and engineering service providers. As software content continues to increase, automotive organisations are competing for talent with IT services firms, semiconductor companies, AI-focused businesses and global capability centres. Recruiters, Ramesh argues, increasingly need to understand technology stacks and specialised engineering domains rather than relying solely on traditional job descriptions.
While talent shortages are frequently discussed, Ramesh believes the industry's more pressing challenge is job readiness. India continues to produce large numbers of engineers, diploma holders and ITI-certified professionals. However, many candidates enter the workforce without practical exposure to technologies that are becoming increasingly common in modern automotive operations.
In manufacturing environments, EV production requires familiarity with high-voltage systems, battery diagnostics, electronics testing and traceability processes. On the engineering side, software calibration, embedded systems, functional safety and systems integration are becoming increasingly important.
"The talent pool exists, but the industry has evolved faster than the education ecosystem. The challenge is not necessarily availability. It is ensuring that skills remain aligned with industry requirements," he says.
The changing skill mix is also influencing compensation. Layam estimates salary growth in automotive and vehicle manufacturing could reach around 9.9% in 2026, ahead of the broader India Inc average, with the strongest premiums concentrated in EVs, embedded software, electronics, ADAS, cybersecurity and automation-related functions.
Electrification is also creating new employment opportunities, although not evenly across the value chain. Much of the hiring momentum is concentrated in electric two-wheelers and three-wheelers, charging infrastructure, software development, testing and battery-pack assembly.
Citing workforce studies, Ramesh notes that a future scenario involving 30% EV penetration could create around 1.2 lakh jobs across manufacturing and electricity-related sectors, while affecting approximately 1.6 lakh jobs linked to petroleum and ICE-related activities.
Beyond hiring, workforce development is becoming an increasingly important strategic consideration. Automation and digital manufacturing are changing the skills required on the shopfloor. Factories increasingly need robotics technicians, PLC specialists, mechatronics professionals, digital quality inspectors and predictive-maintenance engineers. Even operator roles are becoming more technology-enabled through the use of connected manufacturing systems and digital work instructions.
As a result, companies are placing greater emphasis on reskilling, apprenticeships and industry-academia partnerships. "It is relatively straightforward to invest in new equipment or technologies. Developing skills takes longer and requires sustained effort from both industry and educational institutions," says Ramesh. In many ways, the evolution of automotive hiring mirrors the evolution of the vehicle itself. As products become smarter, connected and increasingly software-driven, the skills required to create them are changing as well.