Overall impact on auto sector jobs in ICE to EV transition likely positive, says iFOREST

The transition of vehicles from internal combustion engines to electric models could have a disruptive effect on the industry and workers, but the overall impact on jobs would be positive, according to research by the International Forum for Environment Sustainability and Technology (iFOREST).

The number of jobs per vehicle supported by electric vehicles will be slightly lower than ICE vehicles as the transition to electric vehicles will make most of the powertrain parts of an ICE vehicle obsolete. However, iFOREST expects a net increase in employment in the sector due to a higher penetration of electric vehicles.

“The paradigm change in the mobility sector will have a disruptive effect on the industry and workers. This can be minimised by timely adoption of just transition policies and practice,” said iFOREST CEO Chandra Bhushan.

The report notes that the EV ecosystem will have 5 percent more job roles than ICE vehicles and as per iFOREST’s projection, the total number of jobs in passenger car manufacturing alone will increase to 3.3-3.7 million in 2036-37 from 1.7 million in 2023-24. 

The study forecasts India’s total vehicle production to double by FY31 and triple by FY37 from FY23 level, while electric vehicle production is expected to witness a more rapid acceleration. 

“While India's total vehicle production is expected to double by 2030-31 and triple by 2036-37 compared to present levels (25.9 million units in 2022-23), electric vehicle production will experience a more rapid acceleration,” iFOREST said.