Mumbai, India : 18th September 2023: India’s automobile sector is poised for substantial growth in apprentice recruitment, with expectations of an impressive surge ranging from 70% to 80%, according to TeamLease Degree Apprenticeship, the country’s premier privately-owned Degree Apprenticeship program. TeamLease has gathered this data through a careful assessment of industry relations and an in-depth understanding of the apprenticeship market’s demand dynamics. The anticipated boom in apprentice recruitment can be largely attributed to the sector’s robust performance, which is influenced by macroeconomic factors and positive industry sentiments across all its segments.
One significant factor contributing to this anticipated growth is the extension of the Production-Linked Incentive (PLI) scheme for the automotive sector. Originally scheduled to run from 2022-23 to 2027-28, this scheme’s extension promises to usher in a new era of growth and increased employment opportunities within the sector.
This encouraging trend is evident in various regions, including the states of Gujarat, Uttarakhand, Madhya Pradesh, and metropolitan cities like Pune, Chennai, and Bengaluru. To meet the evolving demands of this dynamic industry, there is a pressing need for comprehensive skilling and re-skilling initiatives, particularly to align with technological transformations such as EVs and connected-car technologies. In response to these challenges, degree-linked apprenticeships in the automotive sector are emerging as a solution, offering access to sought-after roles such as Automotive Service Technicians, Assembly Line Operators, and Shopfloor Engineers. These programs also provide competitive stipends ranging from INR 12,500 to INR 13,300 per month.
Sharing his views on this remarkable surge, Mr. Sumit Kumar, Chief Business Officer, TeamLease Degree Apprenticeship, said, “We believe that apprenticeship programs are the foundation of skilled talent development in the automotive industry. The extension of the PLI scheme, with its ₹25,938 crore investment, is a testament to the sector’s immense growth potential. The government’s expectation of creating 1.48 lakh fresh jobs is proof of the scheme’s potential impact. As of now, approximately 21,123 workers have already been employed, showcasing the industry’s rapid growth. However, this accelerated pace has also shed light on the skills gap within the sector.”
The extension reinforces India’s standing as a global manufacturing hub, especially in the field of electric vehicles (EVs). Notably, the ‘Component Champion Incentive Scheme,’ a part of the broader PLI scheme for the automobile sector, has attracted approximately 75 new entrants, including industry giants such as Maruti Suzuki, Hero MotoCorp, Bosch, Hero Cycles, Minda Corporation, and Toyota Kirloskar Auto Parts.
He further added, “Through degree apprenticeship program, young talents will be empowered with specialized knowledge in cutting-edge areas such as Electric Powertrain Technology, Battery Technology, and Electric Vehicle Charging Infrastructure. This hands-on experience equips them to excel in roles that are not only pivotal for the future of automotive manufacturing but also address the current industry demand. Thus, we are not only bridging the talent gap but also ensuring a brighter and more technologically advanced future for both the industry and its workforce.”
In addition, the shift towards alternate fuels within the automobile sector, including EVs and other sustainable technologies, is driving the need for talent with expertise in these areas. This further underscores the importance of apprenticeships in preparing the workforce for the future.
The industry’s increasing adoption of women apprenticeships signifies a strong commitment to fostering an inclusive workplace environment and advancing gender equality
Talent creation is one of the significant outcomes of degree-linked apprenticeships. By providing a structured pathway for skill development, these programs nurture a pipeline of talented individuals who are well-equipped to meet the demands of the industry. Employers benefit from a pool of skilled and trained workers who are ready to contribute effectively to the workforce.