Hiring Trends in Automotive Industry 2023- 2025

The Indian automotive industry is transforming significantly, influencing recruitment trends from 2023 through 2025. Here are some key developments:

1. Demand for Specialized Skills

• Green Engineers: The clean energy sector's projected growth exceeding 36% between 2024 and 2025 will increase the demand for professionals skilled in eco-friendly technologies and electric propulsion systems.
• Advanced Technology Roles: The integration of advanced technologies has led to a surge in hiring for roles in engineering, R&D, and technology applications, with anticipated salary hikes of 12-15% in these areas.

2. Enhanced Compensation and Benefits

Adopting advanced technologies has enabled automotive companies to offer more competitive compensation packages, a trend expected to continue as the industry experiences increased profitability from both domestic sales and exports.

3. Focus on Diversity and Inclusion

Efforts to address gender disparities have led to initiatives such as female-only assembly lines and targeted recruitment strategies, aiming to increase the proportion of women in the workforce from 33% to 36% by 2024.

4. Shift in Worker Preferences

There's a noticeable preference among workers to be employed closer to home and to prioritize family over career, prompting companies to consider hiring more local talent to improve retention rates.

5. Talent-Driven Market Dynamics

The automotive sector is experiencing a talent-driven market, especially for highly skilled personnel. This necessitates refined HR policies to attract and retain talent, including reskilling initiatives to keep pace with Industry 4.0 advancements.

6. Employer Branding and Talent Retention

Amidst intensifying competition for top talent, establishing a robust employer brand is pivotal for automotive companies. Organizations prioritizing a positive work culture, career development opportunities, and a commitment to sustainability are better positioned to attract and retain skilled professionals.

7. Anticipated Job Market Expansion

India's job market is projected to grow by 9% in 2025, driven by sectors including IT, retail, telecom, and BFSI, which may have indirect effects on the automotive industry's talent acquisition strategies.

8. Recruitment Challenges

• Skill Shortages: The industry faces a significant challenge in the form of a shortage of skilled professionals, particularly in critical areas such as EV battery engineering, powertrain engineering, and software development.
• High Attrition Rates: One of the pressing challenges for automotive companies is the prevalence of high attrition rates, with an anticipated rate of 14.6%. To mitigate this, companies must adopt strategic measures aimed at improving employee engagement, providing competitive compensation packages, and fostering positive work environments.

These trends indicate a dynamic shift in recruitment within India's automotive sector, emphasizing the need for specialized skills, competitive compensation, diversity, and alignment with evolving worker preferences.

(Ref: Taggd, Careernet, Economic Times)