The Indian automotive industry is the fourth largest in the world, accounting for 7% share in India’s GDP and employing over 30 million people, directly and indirectly. The well-established industry, however, is bound to undergo mega-shifts as India moves towards electric vehicles (EVs) to combat climate change. Pledging to reduce its carbon emissions to net-zero by 2070 at the 26th session of the Conference of the Parties (COP 26) to the UNFCCC, India set a goal of achieving 30% EV penetration by 2030. The impending transition from Internal Combustion Engine vehicles (ICEVs) to EVs is expected to be accompanied by significant changes in technology, production processes and consumption patterns. This in turn is likely to have a significant impact on employment in the emerging areas within the EV sector and traditional automotive and associated industries.

At Connect Karo 2023, WRI India brought together policy makers, industry representatives, think tanks and research organisations to deliberate on the changing dynamics of the traditional automotive industry in India due to the impending EV transition, and explore the need to develop a just transition framework for sustainable labour and skill development pathways.