India’s automobile industry is entering a period of expansion while the nature of work inside factories is changing. The Boston Consulting Group (BCG) and Automotive Component Manufacturers Association of India (ACMA) estimate that annual vehicle production could increase from about 30–35 million units in FY25 to 50–55 million by 2030. The auto-component industry is targeting a turnover of about $200 billion by 2030, compared with about $86 billion currently.
At the same time, factories are adopting electric powertrains, electronics, automation, connected technologies and advanced manufacturing systems.
This is changing the skills that manufacturers need. Alongside conventional trades such as machining, welding, assembly and maintenance, companies increasingly need people trained in areas such as electrical and electronics, mechatronics, robotics, battery systems and automated equipment.
Pune shows the gap
A BCG-ACMA report released on September 2, 2026, provides one example of the problem. It estimates that automobile and auto-component plants in the Pune cluster need about 27,000 new skilled workers every year.
The local training system, comprising ITIs, polytechnics and Automotive Skills Development Council centres, produces about 5,000 people who actually complete relevant training each year.
The two figures are not a national estimate. They relate specifically to the Pune automotive cluster.
The report estimates that the cluster employs about 1.6 lakh people, with 50–60% classified as skilled. Its estimate of annual demand includes workers required for expansion, existing vacancies and replacement of a portion of employees who leave.
On the training side, the report counts about 13,500 seats in automobile-related courses in Pune. But enrolment and completion reduce the number who eventually enter the workforce with the relevant training to about 5,000 a year.
What is changing inside the factory?
The traditional automobile factory still needs machinists, welders, assembly workers, maintenance technicians and quality-control workers. But the equipment they work with is changing.
Automated production lines require workers who can operate and maintain computer-controlled machines, robots and other automated systems. The growth of electric vehicles is adding requirements around batteries, electric motors, power electronics and thermal management. The BCG-ACMA report identifies these as new component areas emerging with electrification.
Vehicle electronics are also becoming more important. The report notes that Advanced Driver Assistance Systems (ADAS) were present in less than 1% of new passenger vehicles in 2021, rising to about 8% in 2025.
Conventional skills such as machining, welding, assembly and maintenance continue to be part of automobile manufacturing, while workers are also required to operate and maintain automated and electronic systems.
Skills gap also about what workers know
A 2025 National Council of Applied Economic Research (NCAER) study submitted to the Ministry of Skill Development and Entrepreneurship found gaps in the technical education of workers in the automotive sector.
Using PLFS 2022–23 data, it found that 57.3% of workers in the manufacture of parts and accessories for motor vehicles had no technical education, while 35.2% had a diploma or certificate below graduate level in engineering or technology.
In vehicle manufacturing, 53% had no technical education, while 21.9% had a technical degree in engineering or technology and 16.6% had a diploma or certificate below graduate level in engineering or technology. In vehicle repair and maintenance, 93.3% had no technical education.
A separate NCAER study found that many candidates lacked practical experience with advanced machinery and digital systems. It also said courses in areas such as battery technology, mechatronics, automation and robotics remained scarce, alongside a shortage of qualified trainers.
NCAER’s findings therefore cover both the availability of workers and the skills and practical experience they bring to the workplace.
What is the government doing?
The government is expanding vocational training and apprenticeships. Under NAPS (National Apprenticeship Promotion Scheme) 2.0, the Ministry of Skill Development and Entrepreneurship says “apprenticeship training is conducted in actual work environments using the training facilities available with participating establishments, enabling hands-on learning and industry exposure.”
Under NAPS 2.0, 8.93 lakh apprentices were trained in the “Automotive” sector and 99,244 in the separately classified “Automobile” sector as of June 30, 2026, according to the Ministry of Skill Development and Entrepreneurship.
The government is also upgrading Industrial Training Institutes (ITIs) through the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme. The Ministry says the scheme comprises two components, including upgradation of 1,000 government ITIs (200 Hub ITIs and 800 Spoke ITIs) in a Hub and Spoke model.
The scheme aims to introduce “industry-aligned long-term and short-term courses, especially in new and emerging sectors” and to “strengthen industry linkage for demand-driven skilling and better employment outcomes.”
The government says PM-SETU will “train 20 lakh youth over a period of five years.”
The broader ITI network has also expanded. According to the Ministry, the number of ITIs increased from 9,642 in 2014 to 13,856 in 2026, while seating capacity increased from 17,42,986 in 2014-15 to 20,07,580.
As of March 2026, the Ministry said, training is offered in 169 courses through 13,888 ITIs, while 14 new CTS (Craftsmen Training Scheme) courses have been introduced and 22 existing courses revised over the past 3 years to align with industry needs.
The newer courses include Advanced CNC Machining Technician, Industrial Robotics and Digital Manufacturing, Manufacturing Process Control & Automation, Mechanic Electric Vehicle and Technician Mechatronics.
Need for industry-led training
The BCG-ACMA report points to industry-led training as one way of addressing the gap.
In March 2026, the Directorate General of Training (DGT), under the Ministry of Skill Development and Entrepreneurship, signed a Flexi-MoU with Bajaj Auto Ltd to provide industry-aligned training at the company’s manufacturing facilities, according to a PIB release. The programme is designed to provide trainees with hands-on experience and exposure to industry technologies.
The training covers Assembly Technician (Automotive), Automotive Manufacturing Technician, Automotive Paint Technician, Technician–Plant Maintenance and Industrial Fitter. Training is to be conducted at Bajaj Auto’s facilities in Akurdi and Chakan in Pune, Waluj in Maharashtra, and Pantnagar in Uttarakhand, according to a Rajya Sabha reply issued by Jayant Chaudhary, Minister of State (IC), Ministry of Skill Development.
Bajaj Auto has proposed an intake of 1,000 trainees in the first year. The DGT said the programmes can run for up to 24 months, combining classroom instruction with shop-floor exposure.
This is one example of the industry’s increasing use of workplace-based training alongside conventional ITI and apprenticeship programmes.
