How will EVs transform the automotive industry and help decarbonize the planet?
By 2030, electric vehicles (EVs) are expected to make up a significant portion of the global automotive market. In order to achieve this, EVs would need to account for 75 percent of passenger car sales globally by 2030 - which is a significantly higher number than the current trajectory of the industry.
Electric vehicles (EVs) are starting to make inroads in the automobile industry, with sales increasing in response to higher fuel costs and the need for green transportation. The main advantage of electric mobility is that it can greatly improve people's quality of life by offering a clean alternative to the traditional internal combustion engine. But for the EV wave to really take off, charging infrastructure will need to be expanded and made more convenient for drivers.
Many car manufacturers have announced plans to switch to electric mobility, with some estimates saying that as soon as 2025, one-third of all vehicle manufacturers will have made the switch. This trend is only expected to continue, with estimates saying that by 2040, 40% of all vehicle manufacturers will have gone electric.
In India, the rate of electric vehicle adoption has been much higher than expected. Consumers are flocking to EVs, leaving support structures like charging infrastructures and renewable energy production to play catch up. This is especially true for electric two- and three-wheelers.
Needless to say, the auto industry is experiencing wide-ranging impacts as a result of this massive transition.
A big question mark that's looming over the electric vehicle industry's potential in India is the trickle-down effect it would have on the automotive industry and the employees within it. Though, if we start mass-producing electric vehicle parts here locally, that could increase adoption rates, the automotive components sector does not have a ton of experience when it comes to electronics, electrical and system supplies--all key ingredients in electric vehicles.
ICE models have a lot of parts, while electric models only have a few moving parts. Even though EVs are easier to maintain, workers will need different skill-sets to service them. The mix of workers at automotive component manufacturers and OEMs will also be impacted by technology changes.
Job demand and the mix of jobs will change as a result of Industry 4.0.
The potential switch to electric vehicles might be a big topic of discussion among different industries. It could create a lot of jobs since there would be a need for more people to help with manufacturing, supplying, selling, and teaching consumers about how to use electric vehicles. If there is a strong roadmap in place, then making the transition to electric vehicles will be much easier.
Industry players need to ensure constant re-skilling and up-skilling of workers. Additionally, employees also have an important role in keeping their jobs relevant, especially since companies also need to retain workers that are knowledgeable about current innovations and developments.
Apprenticeship as a promising solution
The automotive industry in India is one of the largest markets in the world. It contributes significantly to the country’s economy with around 7% of total GDP, making it one of the country's most important industries for employment generation.
Toyota, the world's second-largest automobile manufacturer, has cautioned that the Indian automotive sector might suffer from an apparent lack of resources in human talent development if adequate initiatives are not taken during this transformation.
Apprenticeships are an ingenious solution to many talent development problems in the market. Not only do they instill the values of mutual benefits and collaboration to help build a workforce that's prepared for anything, but they also allow you the freedom to seek out the most important asset for your company: people who are customised to your need. TeamLease Degree Apprenticeship recognises the value apprentices bring and we along with TeamLease Skills University offer employment oriented programs like B.Sc. in Mechatronics
It is fortunate that the Center remains cognizant of the skills gap in our country and works closely with other industry bodies such as the Automotive Skills Development Council (ASDC) - on expanding the market for vocational training and improving quality.
Given the undergoing transformation in the automotive industry globally, ASDC has revised more than 100-course curriculums all through 2021 during the peak of the pandemic, in order to make the new workforce future-ready
Large and Mid-Size Organisations should show how Apprenticeships work for the benefit of the Automotive Industry
Organizations that are engaged in apprenticeship work are typically the larger and medium ones. The smaller ones are still shying away from this. These are organizations that are typically run by owners, or a set of family members. And therefore, their ability and the management bandwidth that will be required to support an initiative like apprenticeship is very limited. The SME owners don’t necessarily have the perspective that they’re creating the manpower for the future because they think the larger organizations must do it.
Measures to promote apprenticeship in the automotive industry
· There are two ways to address this. One, larger manufacturers must start with apprenticeship programs in a large number, even if they don’t need it for their requirements, but they must pass it on to the small and medium enterprises in the vicinity or their network.
· Secondly, it would be useful if the government could create certain initiatives for MSMEs. The larger organizations will probably not need that much incentivization of stipends, reimbursements, etc. which can be reduced. But, these initiatives are important for the MSMEs.
· It is also very important to create a common resource pool of apprenticeship trainers for SMEs. A resourceful medium to ensure how to find those people, and could be partially funded by the MSMEs themselves.
Degree Apprenticeships in the Automotive Industry:
At TeamLease Degree Apprenticeships we are working closely with the Automotive bodies and our clients to bring about a change in the way the industry works with Apprentices. The benefits of Apprenticeship programs are innumerable, but, many times the lack of knowledge on implementation of Apprenticeship Programs and a thorough understanding of the Apprenticeship Act become necessary to take such initiatives within the organisation. Talk to us today and let us help you bridge the skill gap within your organisation with Degree Apprenticeship Programs that are specially designed for your industry.