People at the Core: Tata Motors Bets on Reskilling Over Redundancy

As the automotive industry accelerates toward an AI-driven, software-defined future, the conversation around labour is shifting from displacement to reinvention. Sitaram Kandi, CHRO, Tata Motors, talks to Autocar Professional about how the company is reengineering its workforce alongside its Industry 4.0 ambitions. From turning shopfloor operators into data-savvy problem solvers to creating pathways for technicians to evolve into specialists in EVs, electronics and predictive maintenance, Tata Motors is betting big on reskilling at scale. Edited excerpts: 

As AI and automation become more embedded in manufacturing, how is Tata Motors rethinking workforce skills across operations?

At Tata Motors, we are reimagining workforce capability in line with our Industry 4.0 roadmap, which we launched in 2023. This transformation is not limited to technology adoption—it is fundamentally about building future-ready skills at scale.

We are reskilling employees in areas such as data engineering and analytics, supported by a strong network of Digital Champions who lead proof-of-concept initiatives across the organisation. To ensure long-term capability building, we sponsor employees for M.Tech programmes in AI and ML, combining academic learning with hands-on application through live projects.

On the manufacturing side, we are investing deeply in technician upskilling. Shop-floor employees are trained in emerging technologies and encouraged to pursue higher education in mechatronics and digital disciplines. Structured programmes such as our Full-Time Apprenticeship (FTA), Earn & Learn – Kaushalya Scheme, and Lakshya Scheme are helping us build a strong pipeline of talent focused on mechatronics, digitalisation, electrification, and EV technologies.

We are also enabling Self-Directed Teams, where employees use data independently to improve processes, strengthening ownership and agility. Platforms such as Diginova digital labs and the iFactory ecosystem provide immersive environments for learning, experimentation, and innovation. Collectively, these initiatives are embedding digital capability across the organisation and sharpening our competitive edge.

How do you ensure that shopfloor workers, especially those in repetitive roles, are not left behind in this transition?

At Tata Motors, the approach to shopfloor transformation has been multilayered, ensuring that digital adoption is inclusive, practical, and closely aligned with on-ground roles. Our journey begins with foundational digital literacy, ensuring every shop-floor employee is comfortable with basic digital tools and data awareness. This builds confidence and reinforces technology as an enabler of productivity, safety, and quality.

From there, we follow a structured, tiered upskilling pathway, moving employees from awareness to hands-on application. Platforms like Diginova and the iFactory allow employees to experiment with digital tools in a safe and supportive environment, at a pace that works for them.

Training is also role-specific. For employees in repetitive roles, we focus on leveraging automation and data to reduce manual effort and enhance safety. They are trained to interpret machine data, monitor digital dashboards, and actively contribute to continuous improvement initiatives. 

Can you share specific examples of roles that are being redefined due to AI adoption? How are you preparing your workforce for new domains like electronics, battery systems and software integration?

We are already seeing meaningful role evolution across Tata Motors. Traditional quality inspectors are transitioning into data-driven analysts, using AI-enabled vision systems to detect defects in real time and drive process improvements. Similarly, maintenance technicians are becoming predictive maintenance specialists, leveraging AI models and IoT sensors to anticipate failures rather than respond to breakdowns.

On the shop-floor, production operators are increasingly acting as human-machine interface specialists, managing collaborative robots and automated systems with greater digital fluency. In engineering, the rise of connected and software-defined vehicles means designers are building deeper expertise in embedded systems, simulations, and digital twin technologies.

We are preparing our workforce for these shifts through focused reskilling in electronics, battery technology, embedded software, and digital systems, ensuring smooth transitions into these emerging domains.

What percentage of operations are currently automated and where do you see this heading?

We take a selective and purpose-driven approach to automation. Our focus is on areas where automation delivers maximum impact, particularly safety-critical environments, high-precision processes, and physically demanding or repetitive tasks.

Automation is also strengthening quality assurance, supported by advanced error-proofing and digital monitoring systems. Going forward, we will continue to expand automation in high-risk and high-accuracy areas, always guided by the broader objective of improving safety, quality, and productivity, while keeping human expertise at the centre of operations.

Is there a conscious strategy to redeploy workers rather than reduce headcount?

Yes. At Tata Motors, people are at the core of our business, and we consciously prioritise redeployment and reskilling over headcount reduction, wherever feasible.

Each year, we invest in plant-wide, structured capability-building programmes, training technicians and employees in emerging areas such as EVs, electronics, hydrogen, digital technologies, and sustainability. Foundational skills - safety, Total Quality Management, problem-solving, and Kaizen - remain mandatory for all new hires and trainees.

By keeping our workforce adaptable and digitally fluent, we enable smooth transitions into new roles as technology and business requirements evolve, while enhancing productivity and organisational agility.

How are ongoing geopolitical tensions, especially in West Asia, affecting labour planning, workforce stability and inflation-led challenges?

Geopolitical developments have an impact on the availability and cost of critical inputs such as semiconductors, EV batteries, and other components. For Indian auto companies, this translates into inflationary pressures and added complexity in workforce planning, as organisations balance input costs with the need to sustain production and ensure workforce stability.

Have supply chain disruptions or cost pressures translated into hiring freezes, slower recruitment or changes in workforce structure?

No, supply chain disruptions and rising costs have not resulted in hiring freezes at Tata Motors. Instead, we have stayed focused on redeploying and reskilling talent to meet evolving business needs. We continue to align our workforce strategy with growth areas such as EVs, electronics, digital, and software led capabilities, ensuring we remain responsive and future ready.

What changes have the new labour codes brought to your workforce policies, especially around wages, working hours and contract labour?

The new labour codes and workplace policies are being aligned to ensure compliance while maintaining operational continuity.

As the industry shifts toward EVs and software-led vehicles, how will workforce requirements change?

As the industry shifts towards EVs and software-led vehicles, workforce requirements are evolving steadily. Mechanical expertise alone is no longer sufficient, with skills in electronics, battery systems, and embedded software becoming increasingly critical.

We are investing consistently in reskilling to help employees transition into emerging domains such as digital, electrification and AI-driven analytics. This transformation is creating a multi-disciplinary workforce that is future-ready, innovation-driven, and capable of sustaining competitiveness in a software-defined automotive landscape.