Automotive sector plans 70% workforce expansion, reports TeamLease Services

TeamLease Services, a staffing solutions company in India, has released its Employment Outlook Report for HY2 FY25, highlighting workforce trends in the automotive sector.

The industry, which contributes approximately 7% to India’s GDP, is experiencing notable hiring momentum driven by consumer demand, technological advancements, and a growing focus on electric and connected vehicles. The report indicates that 70% of employers in the sector plan to expand their workforce, reflecting ongoing industry growth.

The report states that the sector is experiencing a net employment change of 8.5%, driven by increased production of EVs and advancements in vehicle technology. This has led to a demand for specialized roles, including robotics experts, software engineers, and supply chain managers. However, workforce strategies vary across companies, with 17% of employers reducing their workforce and 13% maintaining current levels.

In terms of hiring locations, Chennai, Mumbai, and Delhi are the leading cities for workforce expansion in existing roles, with 63%, 62%, and 61% of employers, respectively, planning to hire. For new job opportunities, Gurgaon is the top city, with 19% of employers considering expansion, followed by Mumbai, Indore, and Coimbatore, each at 15%.

The report further highlights that engineering roles account for the highest hiring intent at 66%, followed by sales at 60% and information and communication technology (ICT) roles at 56%. The growing focus on EVs and smart vehicle technologies has increased demand for technical expertise in the sector.

Despite the hiring momentum, the report also notes that 82% of employers are extending working hours to manage seasonal demand instead of solely increasing their workforce. This approach reflects an effort to balance operational efficiency with workforce expansion.

Commenting on the findings, Subburathinam P., Chief Operating Officer at TeamLease Services, stated that the automotive sector is evolving with advancements in EVs, connected vehicles, and premium models. He added that companies are investing in specialized skills such as IoT, AI, and analytics while also optimizing existing resources to remain competitive.

With changing consumer preferences and rising disposable incomes, the report suggests that the automotive sector will continue to contribute to economic growth and employment opportunities in India.