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India's Electric Vehicle Economy

EVs and Jobs in the Auto Industry

How electric vehicles change auto manufacturing jobs and parts suppliers, which components disappear, and how workers and firms can adapt.

EVs change what goes into a vehicle, and therefore jobs.

Parts that shrink

EVs have no:

  • Engine pistons and crankshafts.
  • Fuel injection systems.
  • Exhaust systems.
  • Complex gearboxes.

Suppliers of these parts, many in clusters like Pune, Chennai and Gurugram, face declining demand.

Parts that grow

  • Batteries and battery management systems.
  • Electric motors and controllers.
  • Power electronics and software.
  • Charging equipment.

Service jobs

EVs need less maintenance, reducing work for mechanics who service engines.

Adapting

  • Component makers like Sona Comstar grew by making EV motors and driveline parts.
  • Reskilling mechanics and engineers for electric systems.

Net effect

Studies suggest the transition may shift jobs more than eliminate them, but workers in engine-related parts face real risks.

The piston maker

A small firm that made engine pistons sees orders falling. It invests in making motor housings for EVs, retraining its workers.

Thinking EVs create jobs everywhere

They shift jobs, and engine-part suppliers face declines.

Key takeaways
  • EVs lack engines, exhausts and complex gearboxes.
  • Batteries, motors and electronics grow.
  • Mechanics face less maintenance work.
  • Reskilling helps workers adapt.
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