Ever-evolving technology is making some traditional job roles redundant in the Indian automobile industry. Once-crucial positions such as 2D & 3D modelers, CAD modelers, repeatable product designers, and documentation engineers are becoming superfluous.
To be sure, people in these roles are not always laid off. They can be transferred to jobs that are influenced by automation and the rise of electric vehicles.
The automobile industry has three major talent clusters: engineering research & development (ER&D); production, and sales and frontline.
According to Kanth S, business head of Engineering Services at staffing firm Xpheno, the EV revolution has predominantly impacted ER&D functions due to the innovation-heavy nature of the industry. It is also influenced by the adoption of autonomous vehicles and advanced driver assistance systems (ADAS).
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“The decline in demand has been significant in 2D & 3D modelers, CAD modelers, technical writers, repeatable product designers, and documentation engineers responsible for activities like product data management,” Kanth told Moneycontrol.
The biggest downfall in terms of demand in the past two years – 70 percent –has been for ICE (internal combustion engine) designers and powertrain designers.
ICE designers work on developing that part of the car that burns fuel. Their job is to make powerful and efficient engines that meet environmental standards. Powertrain designers work on the system that transfers power from the engine to the wheels.
Xpheno noted that computer-aided engineering (CAE) modelers involved in virtual validation have also experienced diminishing relevance.
Tech-focussed jobs gaining prominence
Recently, an International Monetary Fund analysis found that artificial intelligence (AI) will affect almost 40 percent of global jobs, with advanced economies facing greater exposure than emerging markets and low-income countries.
Job portal foundit noted that 14 percent of jobs in the Indian automobile sector in the past two years have been tech-focused. On the other hand, roles with the lowest demand were radiological safety officer, service advisor, and weldshop production engineer/executive, while the most sought-after role was design engineer.
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Queries sent on the declining demand for certain job roles in the automobile industry were not answered by companies including Maruti Suzuki, Tata Motors, Hero MotoCorp, Ashok Leyland, and Bajaj Group at the time of publishing this report.
“EVs often use single-speed transmission or no transmission at all, leading to a reduced need for specialists in traditional transmission assembly or repair. Additionally, system experts specifically related to fuel pumps, injectors and related components might have reduced demand,” said Sekhar Garisa, CEO of foundit.
EVs are gaining a larger share of new jobs in the automobile industry. Road transport and highways minister Nitin Gadkari has said India is likely to see 10 million EV sales a year and the segment is expected to generate about 50 million jobs by 2030.
EV sales in India climbed 50 percent to over 1.5 million in 2023 and are projected to reach 2 million in 2024. Two- and three-wheelers accounted for more than 90 percent of EV sales last year.
No layoffs
Though the fear of being replaced by robots and allied technology is real, experts said employees need not anticipate layoffs because of high adjacencies in the new job roles.
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Job adjacencies refer to roles that are closely related or connected to a person's primary job function. For example, an employee in marketing might explore adjacent roles in product management or market research, leveraging their skills and knowledge in related areas.
“EV manufacturing requires different skill sets compared to traditional vehicle production. Therefore, there might be a shift in job roles and a demand for new skills, leading to redeployment rather than layoffs,” Garisa said.
Xpheno’s Kanth said the automotive industry is unlikely to experience any waves of layoffs even if the adoption of EVs goes into full force.
“Product design experts and manufacturers play a significant role in the industry and their expertise remains relevant amidst the shift to EVs. There will, however, be a rearrangement and distribution of skill sets with upskilling mandates,” he said.
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Candidates need to focus on developing overlapping skills like macros development, script writing, product design, and virtual validation, Kanth suggested. There's growing demand for expertise in areas such as battery technology, electric drives, electrical engineering, and power electronics.
To stay relevant, individuals must invest in skills related to EVs as well as emerging areas like connectivity, active safety, infotainment, ADAS, and autonomous driving.
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