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Analyzing the employment dynamics of manufacturing passenger cars in India

Student name: Mr Arun Babu
Guide: Dr Amit Kaur
Year of completion: 2024
Host Organisation: The Energy and Resources Institute (TERI), New Delhi
Supervisor (Host Organisation): Mr Sharif Qamar
Abstract:

This study examines the employment dynamics in India's passenger car manufacturing sector as it transitions from internal combustion engine (ICE) vehicles to electric vehicles (EVs). The automotive industry, vital to the Indian economy, is experiencing significant changes driven by the global push for sustainable transportation. This shift impacts job distribution, skill requirements, and overall employment patterns, influencing policy and industrial strategy. Traditional manufacturing roles are expected to decline, while new opportunities in battery manufacturing, software development, and EV maintenance emerge, requiring specialized skills. The job coefficient analysis reveals that although ICE vehicle manufacturing supports substantial employment, the streamlined production of EVs may reduce direct manufacturing jobs. However, this potential job loss could be offset by new roles in related industries like renewable energy and recycling, highlighting the need for workforce development and strategic planning to navigate this industrial shift.

This study examines employment dynamics in India's passenger car manufacturing sector as it shifts from internal combustion engine (ICE) vehicles to electric vehicles (EVs). The transition will change job distribution, skill requirements, and employment patterns, reducing traditional manufacturing roles but creating opportunities in battery production, software development, and EV maintenance. The job coefficient analysis shows potential job losses in direct manufacturing offset by new roles in related industries like renewable energy. Gender disparity remains a critical issue, with women significantly underrepresented, highlighting the need for policies promoting diversity and inclusion. Regional differences in EV adoption suggest targeted policy interventions to support lagging areas. The study's reliance on the Annual Survey of Industries (ASI) and the outdated National Industrial Classification (NIC) Code poses limitations in capturing recent industry changes. Ultimately, the research emphasizes the need for strategic workforce development, inclusive policies, and regional support to manage this significant industrial shift, ensuring a smooth, sustainable transition that benefits the economy and society.

Keywords: Employment dynamics, India's passenger car manufacturing sector, internal combustion engine (ICE) vehicles, Electric vehicles (EVs) Job distribution and skill requirements