As India grapples with nationwide unemployment, millions of jobs in the automobile sector—ranging from car mechanics to auto parts dealers—are at risk. The shift from conventional vehicles to electric vehicles (EVs) is reshaping livelihoods, with new roles emerging in EV charging infrastructure, cell manufacturing, and battery assembly, requiring advanced technical skills.
Hyderabad: Mechanic’s Fear of an Uncertain Future
In Yousufguda, a dense locality in Telangana’s capital, Hyderabad, Bhumeshwar Rao, a two-wheeler mechanic, shared his apprehensions about the EV revolution. Having learned his trade through years of hands-on experience with petrol vehicles, he now faces a decline in relevance as EVs replace components like fuel injectors and exhausts with simpler systems.
Rao worries about his ability to support his family and educate his children without reskilling, as EV technology demands expertise he cannot afford to acquire. His story mirrors the concerns of tens of thousands of informal workers who form the backbone of India’s automobile ecosystem.
Jobs in Jeopardy Amid a Nationwide Crisis
India’s unemployment crisis affects around 37 million people, with 10% unemployment in urban areas. The auto industry, heavily reliant on informal workers, could see fundamental changes in its value chain.
In 2020, the transport industry contributed 272 million tons of CO2 emissions, with road transport responsible for over 92%. EVs are central to India’s goal of net-zero emissions by 2070, with interim targets for emission reduction and clean energy use by 2030. However, the transition threatens livelihoods dependent on traditional vehicles, even as EV sales surged by 155% in 2022-23, crossing 1.7 million units.
Changing Dynamics for Auto Supply Chains
Rakesh Jha, owner of Raj Auto Parts in Hyderabad, remains cautious but prepared for the shift. While demand for conventional vehicle parts may sustain for another decade, he anticipates the need to stock EV-compatible parts, necessitating new supply chains and business strategies.
Technicians like Y Vamshi Krishna at Race Kraft, a car service center, and Sai Kumar at a Hyundai dealership echo similar concerns. The Energy Transition Advisory Committee’s proposed diesel ban and rising EV adoption could upend the job market for those reliant on ICE (internal combustion engine) vehicles.
Opportunities in Reskilling
The transition to EVs could create new opportunities. According to the Council on Energy, Environment and Water (CEEW), job outcomes depend on India’s ability to develop an indigenous EV ecosystem. Currently, 70% of lithium-ion batteries are imported, but automakers are investing in local battery production, which could retain and retrain workers more cost-effectively than hiring new talent.
Industrial Training Institutes (ITIs) and institutions like IITs are offering EV-specific courses, aiming to bridge the skills gap. While job losses in ICE-dependent roles are inevitable, the growth in EV manufacturing could create demand for electricians, machinists, and materials engineers.
Two-Wheelers Leading the EV Revolution
NITI Aayog predicts that by 2030, 80% of two-wheelers sold in India will be electric. Between 2019 and 2021, demand for electric two-wheelers increased by 422%, driven by environmental awareness and cost-effectiveness. Trade unions have called for meaningful involvement in transition planning to safeguard the interests of informal workers, who comprise half the workforce.
Battery swapping, as demonstrated by RACEnergy in Hyderabad, is gaining traction, offering faster solutions and creating new job roles in charging infrastructure.
Investments and Green Mobility
State and central governments are rolling out incentives for EV adoption. Telangana plans a fleet of 3,360 e-buses by 2025, with projects like Olectra Greentech generating employment for drivers and technicians. Tamil Nadu, Gujarat, and Maharashtra have announced substantial investments and policy incentives, including tax exemptions and subsidies for EV purchases.
Looking Ahead
India’s ambitious climate goals are driving EV adoption, offering both challenges and opportunities. The industry must prioritize reskilling its workforce and ensuring a just transition to safeguard the livelihoods of millions while advancing toward a greener future.
