The sale of electric vehicles is rising steadily. The rise of EVs is expected to have some impact on jobs associated with internal combustion vehicles (ICE). A pan-India survey has now confirmed how grave these impacts will be.
The study by the International Forum for Environment, Sustainability, and Technology (iFOREST) has shed light on the challenges and opportunities brought about by the shift to electric vehicles (EVs) for businesses, workers, and the environment. This study is believed to be the first comprehensive research on the implications of transitioning to EVs in the Indian automotive industry.
The study reveals that a significant impact is projected on auto component manufacturers, with 45-84% of parts used in internal combustion engine (ICE) vehicles, particularly powertrain components, expected to become outdated due to the transition to EVs. The analysis of 729 auto component manufacturers nationwide suggests that about 34% of them will face considerable effects, especially in states like Haryana, Maharashtra, and Tamil Nadu, where auto manufacturing is concentrated.
While the shift to EVs may lead to a decline in traditional job roles, particularly in ICE manufacturing, it is anticipated to create a net increase in job opportunities. Passenger car manufacturing jobs are expected to double by 2036-37, from 1.7 million to 3.3-3.7 million.
Forecasts indicate a substantial increase in EV adoption in the Indian automotive market in the coming years, with EV production expected to rise significantly, reaching between 36 to 51.4 million units by 2036-37. This growth will be particularly notable in the two-wheeler and three-wheeler segments, potentially capturing 100 % market share in the latter.
