• May 22, 2024

EV Penetration Will Increase Employment Even if Established Positions Would Be Disrupted.

The broad adoption of electric vehicles (EVs) will result in a net increase in jobs in the coming years, even if there are fewer employment opportunities per EV than every ICE (internal combustion engine) automobile. According to recent research by the International Forum for Environment, Sustainability, and Technology (iFOREST), employment in the passenger automotive manufacturing sector alone is expected to quadruple, from a population of 1.7 million in 2023–2024 to 3.3–3.7 million in 2036–2037.

According to the paper, Pune, the car capital of India, ought to spearhead Maharashtra’s seamless transition to electric vehicles. Pune has a strong automotive heritage and the potential to lead development in the state’s automotive industry. While some people in traditional manufacturing may be replaced, this transition will also lead to the creation of new opportunities in fields like battery technology. 

EV Penetration

The report clarifies the nuances of this shift by emphasizing that, depending on the kind of vehicle, 45–84 percent of ICE vehicle parts—mainly powertrain components—will become obsolete as a result of the shift to EVs. Undoubtedly, firms that specialize in these components will be impacted by this change.

A sizable portion of the workforce, approximately 60%, who work in car component industries on a contract or informally will be at risk, particularly those employed by micro and small businesses. Roughly 31% of current job roles—mainly in manufacturing—would be impacted; 14% will become obsolete, and 17% will call for reskilling. On the other hand, a net expansion in the employment market is anticipated.

In Maharashtra, makers of automobiles and car parts employ around 340,000 people. While traditional manufacturing jobs in internal combustion engine (ICE) vehicles are predicted to be impacted by the shift to electric vehicles (EVs), overall employment is expected to benefit.

Maharashtra’s Pune, Nashik, Aurangabad, Mumbai (Suburban), Thane, and Kolhapur districts are especially vulnerable because of the industry’s heavy reliance on their labor supply and significant concentration of auto manufacturing facilities. These districts include 83% of the formal workforce and 65% of the state’s vehicle units. 

Based on these conclusions, the paper suggests a thorough ‘Just Transition Policy Framework for the Automobile Sector for Maharashtra.’ This covers a range of policy facets, including strong skilling programs that are in line with the EV ecosystem, clean mobility advances, and tax laws that encourage green industrial methods.