India’s Road to a Green Transition: Challenges and Labour Implications

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India’s automotive sector is one of the most important segments within Indian manufacturing, contributing to 7.1% of the National Gross Domestic Product and 35% to manufacturing GDP. In the last three decades, it has played a crucial role within India’s economic ‘growth story’, attracting investment and progressively integrating within the Global Automotive Value Chain, whilst catering the large and dynamic domestic market. The sector is currently undergoing a significant transformation with the introduction of Electric Vehicles. With rising pressure to tackle both high pollution levels in its cities as well as global policy pressure to address the compelling climate emergency, India has taken significant policy initiatives towards electrification. From the Green Initiative, to the National Electric Mobility Mission Plan (NEMMP) and to several FAME [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles] schemes, different Government plans have sought to provide an initial impetus for the transition to EVs. On the corporate side, several companies have started their transition towards a greener fleet and expanded to install the production of electric models.

This work builds on research conducted in the Pune automotive cluster for three months at the end of 2024 and beginning of 2025, based on interviews with various stakeholders in a few key Original Equipment Manufacturers, Auto Component Manufacturers and the broader supply chain, analysing the transformation of the main players in the area. The work shows how, while the cluster has attracted investment and carries wide potential for an important EV transition, the transformation has so far occurred through significant restructuring, one involving both plant closures and opening of new facilities, with a strong reliance on temporary workforce, ‘adjusted’ depending on contingency needs. Overall, the paper illustrates how, even within an expansionary phase and counting on a significant competitive advantage, the Indian automotive industry continues to function based on high levels of casualisation, and challenges of skilling. It invites thinking through the markers of ‘just transition’ in the ‘green transition’ debate in the specific conditions of the Indian auto sector.