In the last two years, the electric vehicle (EV) industry has seen tremendous surge in employment and an average growth in employee numbers of 108%, according to CIEL’s EV sector report. The report also highlighted the fact that the central government’s initiatives for the faster adoption of EVs around the country have been the biggest growth driver.
“India is on a path to becoming a hub for the production of EVs, in the process of boosting employment generation,” noted the report.
CIEL conducted the study ‘Latest Employment Trends in the EV Sector 2022’ among 15,200 employees from 52 organisations.
The report stated: “The average growth in employee numbers stands at a massive 108% over the last two years. In the short term, i.e., 1 year and six months, the growth is 35% and 13% respectively.”
It also noted that automobile giants in India are betting big on the EV ecosystem. For example, among several automobile manufacturers, Tata Motors has invested Rs 15,000 crore, while Maruti Suzuki, Hyundai and Mahindra have invested Rs 10,440 crore, Rs 4,000 crore and Rs 3,000 crore, respectively.
However, as per CIEL’s report, over the previous three years, the value of the investments by private equity firms in the EV industry has increased by over 300% and start-ups have received considerable funding. It also stated that the expenditures are aimed not only at EV manufacturing but also at battery technology, installation and maintenance of public charging stations, and grid works.
According to NITI Aayog, cumulative investment in India’s EV transition could be as much as Rs 19.7 lakh crore between 2020 and 2030 — to achieve a 30% sales share for EVs by 2030.
Additionally, it was noticed that M&A and Strategic Partnerships have emerged as critical strategies for accelerating growth in the EV business. The report said: “Our analysis reveals that there has been almost a 500% jump in the total deal value in the EV space in 2021 over 2020.”
CIEL believes that such collaboration components enable to optimise costs, schedules, and shared knowledge; improve production capacities, promote new product development, and obtain technical support.
Government Initiatives
The report noted that because of the possibility of 100% FDI, India’s EV industry is picking up speed, with the creation of new manufacturing centres and expanded charging station infrastructure.
Additionally, under phase II of the FAME scheme, as of November 25 last year, more than 1,65,000 EVs had been sponsored with a demand incentive, totalling approximately Rs 5.64 billion.
Approvals have been obtained for 6,315 electric buses, 2,877 EV charging stations totalling Rs 5 billion in 68 cities across 25 states/UTs, and 1,576 charging stations totalling Rs 1.08 billion across nine expressways and 16 motorways, the report stated.
It also highlighted that several production-linked incentive schemes aim to build a local manufacturing ecosystem to support goals related to the increase in the use of electric mobility transport.
According to CIEL: “This is sought to be achieved by incentivizing fresh investments into developing indigenous supply chains for key technologies, products, and auto components.”
However, it should be noted that apart from the launch of the Production-Linked Incentive Scheme (PLI), this year Finance Minister Nirmala Sitharaman, during the Budget Session, announced plans to implement a battery swapping policy and formalise interoperability standards. Additionally, the Centre also announced plans to increase EV penetration in public transportation and create dedicated mobility zones for EVs.
However, according to the Ministry of Skill Development and Entrepreneurship, the EV industry will generate 1 crore direct jobs by 2030 and it will give rise to approximately 5 crore indirect jobs in the sector.
Top Location for EV Talent
EV manufacturers are making some strategic mid-level hires, in line with their corporate goals. For example, associate-level jobs account for 41% of all job posts, with mid-senior level jobs accounting for 34%. Only 21% of job postings are for entry-level positions.
According to CIEL’s EV report, Bengaluru is the most popular place for EV talent, accounting for 62% of job postings in the region while other regions include Delhi NCR (12%), Pune (9%), Coimbatore (6%), and Chennai (3%).
In recent years, Karnataka has emerged as a hub for EV enterprises. Mahindra Electric, Ather Energy, Ola Electric, and Bosch are a few of the state’s most well-known companies that manufacture EVs and their ancillaries.
“Auto industry is likely to largely require in-person physical presence on-premises, with only 12 per cent of the jobs in this sector expected to continue remotely, and 8% in the hybrid model,” noted the report.
It was also stated that companies in this sector are found to be interested in bringing on technical and specialised personnel and the most noticeable title is ‘Software Engineer’. Meanwhile, the hiring of EV players has also been found to have increased in fields including AI, big data analytics, app development, cyber defence, and IoT.
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