The Auto Sector in India is set to continue in its growth trajectory for the next five years and India is an increasingly favourite destination for Global Majors looking at emerging market. This inturn, has fueled a boom in the domestic auto market, with close to 10mn1 vehicles sold in India in 2009-10. The consequent effect on the Auto Service sector and its skill requirements are being addressed in this report.
The Auto Services sector currently employs an estimated manpower of 787,7702, with 58% of being in the passenger car segment. There is an increasingly diversified skill requirement in the sector for effective service delivery, spares management and support functions.
The supply from ITIs and Polytechnics in India for the entire Auto sector is in the region of 530,000 graduates per annum. There is an urgent need for courses to be updated to reflect the changes in technology, auto manufacturing, repair processes and equipment used.
KPMG’s Predictions on Future Trends for the Auto Service sector that will have a significant impact on the skill requirements for the sector are:
1 Globalization of the Auto Sector will increase the skill levels of the service sector
2 Emergence of Non-OEM Service Centers
3 Geographical spread of Indian auto market will fuel the rise of “All Car Service” centers
4 Changing Technology Landscape will place a premium on specialized skills
5 Focus on Specialized rather than Generalized Skills