According to a study by the International Forum for Environment Sustainability and Technology (iFOREST), the shift from internal combustion engine ICE vehicles to electric vehicles (EVs) could result in a significant disruption to the industry and workforce. However, despite this potential upheaval, overall employment effects are projected to be positive.
The research highlights that as many powertrain components in ICE vehicles are becoming outdated, it is expected that the number of jobs supported per vehicle by EVs might be slightly lower than that of ICE vehicles. Nevertheless, there is anticipated to be a notable increase in sectoral employment due to the broader adoption of EVs.
The CEO of iFOREST, Chandra Bhushan, emphasized the critical importance of implementing timely just transition policies and practices to mitigate the disruptive impacts that both the industry and workers may face because of the substantial transformation in the mobility sector.
As outlined in the report, the vehicle production in India is projected to double by FY31 and triple by FY37 compared to the levels recorded in FY23, with a more rapid growth expected in the production of electric vehicles.
By the time India reaches 2036–2037, the overall car production is set to triple, and by 2030–2031, it is expected to double from the current level of 25.9 million units reported in 2022–2023. Furthermore, iFOREST suggests that the expansion rate of electric vehicle manufacturing will surpass that of the industry as a whole, indicating a trend towards increasing prominence and adoption of EVs in the market.
