Does India have enough skilled workers to make more vehicles? Explained

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Published - September 04, 2026 09:17 am IST - Chennai

The traditional automobile factory still needs machinists, welders, assembly workers, maintenance technicians and quality-control workers.

But the equipment they work with is changing.

File photo. | Photo Credit: S.

R.

Raghunathan

India’s automobile industry is entering a period of expansion while the nature of work inside factories is changing.

The Boston Consulting Group (BCG) and Automotive Component Manufacturers Association of India (ACMA) estimate that annual vehicle production could increase from about 30–35 million units in FY25 to 50–55 million by 2030.

The auto-component industry is targeting a turnover of about $200 billion by 2030, compared with about $86 billion currently.

At the same time, factories are adopting electric powertrains, electronics, automation, connected technologies and advanced manufacturing systems.

This is changing the skills that manufacturers need.

Alongside conventional trades such as machining, welding, assembly and maintenance, companies increasingly need people trained in areas such as electrical and electronics, mechatronics, robotics, battery systems and automated equipment.

A BCG-ACMA report released on September 2, 2026, provides one example of the problem.

It estimates that automobile and auto-component plants in the Pune cluster need about 27,000 new skilled workers every year.

The local training system, comprising ITIs, polytechnics and Automotive Skills Development Council centres, produces about 5,000 people who actually complete relevant training each year.

The two figures are not a national estimate.

They relate specifically to the Pune automotive cluster.

The report estimates that the cluster employs about 1.6 lakh people, with 50–60% classified as skilled.

Its estimate of annual demand includes workers required for expansion, existing vacancies and replacement of a portion of employees who leave.

On the training side, the report counts about 13,500 seats in automobile-related courses in Pune.

But enrolment and completion reduce the number who eventually enter the workforce with the relevant training to about 5,000 a year.

The traditional automobile factory still needs machinists, welders, assembly workers, maintenance technicians and quality-control workers.

But the equipment they work with is changing.

Automated production lines require workers who can operate and maintain computer-controlled machines, robots and other automated systems.

The growth of electric vehicles is adding requirements around batteries, electric motors, power electronics and thermal management.

The BCG-ACMA report identifies these as new component areas emerging with electrification.

Vehicle electronics are also becoming more important.

The report notes that Advanced Driver Assistance Systems (ADAS) were present in less than 1% of new passenger vehicles in 2021, rising to about 8% in 2025.

Conventional skills such as machining, welding, assembly and maintenance continue to be part of automobile manufacturing, while workers are also required to operate and maintain automated and electronic systems.