A report by the International Forum for Environment Sustainability and Technology predicts that India’s total vehicle production will double by FY31 and triple by FY37 from FY23 levels, with electric vehicle production expected to accelerate even more rapidly.
The shift from internal combustion engine (ICE) vehicles to electric vehicles (EVs) could significantly disrupt the industry and its workforce, yet the overall effect on employment is anticipated to be positive, as per a study by the International Forum for Environment Sustainability and Technology (iFOREST). The research suggests that while the number of jobs per vehicle supported by EVs may be marginally lower than that of ICE vehicles due to the obsolescence of many powertrain components in ICE vehicles, there is an expected net increase in sectoral employment driven by the greater adoption of EVs.
Chandra Bhushan, CEO of iFOREST, emphasized the importance of timely implementation of just transition policies and practices to minimize the disruptive impact on the industry and workers caused by the significant shift in the mobility sector.
The report highlights that the EV ecosystem will offer 5 per cent more job roles compared to ICE vehicles. iFOREST’s projections indicate that the total number of jobs in passenger car manufacturing alone will rise to 3.3-3.7 million by 2036-37, up from 1.7 million in 2023-24.
The study also forecasts a doubling of India’s total vehicle production by FY31 and a tripling by FY37 from FY23 levels, with electric vehicle production expected to accelerate even more rapidly. iFOREST notes that while India’s total vehicle production is set to double by 2030-31 and triple by 2036-37 from the current level of 25.9 million units in 2022-23, the growth rate of electric vehicle production will surpass that of the overall industry.
