ASDC Seeks Dedicated Automotive Skilling Allocation in Union Budget

The Automotive Skills Development Council (ASDC) has sought a dedicated budgetary allocation for automotive skilling in the Union Budget, along with the creation of a National Automotive Skill Mission under the Ministry of Heavy Industries.

Speaking at the ASDC Annual Conclave 2026, Vinkesh Gulati also proposed an Automotive Future Skills Fund with government and industry participation. The fund could support advanced training infrastructure, EV and battery laboratories, simulation centres, robotics and AI facilities, trainer development, apprenticeships and large-scale skilling programmes.

“We request your support for a dedicated budgetary allocation for automotive skills in the Union Budget and establishment of an Automotive Future Skills Fund with government and industry participation,” Gulati said.

National Automotive Skill Mission: Scope and Technologies

The proposed National Automotive Skill Mission would bring together the government, ASDC and industry to prepare India’s workforce for technologies including EVs, AI, robotics, software-defined vehicles, Industry 4.0 and advanced manufacturing.

India's Automotive Skill Gap by the Numbers

The proposals come as India’s automotive industry faces an acute talent shortage. Gulati said the sector employs nearly 1.9 crore people directly and indirectly, but currently has 4.3 vacancies for every 100 employees. He also cited estimates that 80% of employers faced difficulty finding skilled professionals in 2025.

ASDC is conducting a skill-gap study to identify these shortages in greater detail. Initially planned for release at the conclave, the study is now expected to be released around December because of the scale of the exercise.

Why Automotive Skilling Needs to Keep Pace with Technology

Gulati said automobiles can no longer be viewed primarily as mechanical products, with software, batteries and other technologies increasingly converging within vehicles. The speed of technological change is also making it difficult for skilling programmes to keep pace with industry requirements.

Expanding Skilling to Tier 2 and Tier 3 Cities

ASDC has additionally sought to take automotive skilling deeper into Tier 2 and Tier 3 cities, villages, talukas and emerging automotive clusters.

ASDC's FY2025-26 Skilling Performance

During FY2025-26, ASDC impacted 508,173 learners, up by around 20-25% year-on-year, and conducted 153,240 assessments. Automotive apprenticeships reached 288,756, representing growth of around 112-113%, according to Gulati.

(With inputs from Shahkar Abidi, Anurag Chaturvedi and Darshan Nakhwa)