The National Skill Development
Corporation (NSDC) has stated in a report that by 2022, nearly 15 million (1.5
crore) people are expected to be employed in automobile sector directly in the
industry. The report suggests that the state of Haryana leads in the production
of passenger cars, motorcycles, tractors and accounts for 50pc of total
passenger cars and two-wheelers production in India.
The key growth drivers
according to report are that India and other BRIC nations would emerge as major
manufacturing hubs due to the availability of cheap labour and other favourable
investing environment as more companies are looking at India as a manufacturing
base and shifting their operations from Europe to India, and other south-east
Asian countries. As many global auto component manufacturers have manufacturing
presence in India either through joint ventures or otherwise, they are focusing
on exports as excise duty is very less in complete knocked down (CKD) units.
Industry growth, changing
technology, growing economy, larger income at disposal and lowering first hand
life-cycle of cars have triggered requirements for fresh skilling and
up-skilling in the sector.
Out of 7.6 million employed in
manufacturing, 72 percent of the employees are working in component sub-sector.
Even in auto component manufacturing companies, a majority of the workforce is
employed in tier-III and raw material manufacturing companies. 19.1 million
people are employed in the automobile sector directly or indirectly. This
includes manufacturing in OEM, Auto components, raw material factories,
automobile dealers, service centres, and other enabler sectors.
At present, more than 70 pc of
the auto component companies are SMEs. Further, the automotive sector has 56 pc
of workforce which is second highest after telecom sector.
Commenting on the report,
Dilip Chenoy, Managing Director & CEO, National Skill Development
Corporation (NSDC) said, “According to industry estimates the automobile
industry accounts for 22-25 per cent of the country's manufacturing gross
domestic product. FDI in the sector is allowed to 100% under the automatic
route. Therefore, an addition of one manpower at the OEM would lead to
generating eight jobs at the vendor’s end. So much is happening in the sector
due to a push by the Government initiatives. To meet the incremental human
resource requirement in the sector the entire ecosystem has been scaling up its
training initiatives in this sector and aligning themselves to industry
recognised national occupational standards”.
“There is an urgent need to
update the courses with the change in technology implemented at the plants,” he
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