The Indian state of Maharashtra, a major hub for automobile manufacturing, is outlining a roadmap for a “just transition” to a future dominated by electric vehicles (EVs), according to a new report by iForest Global Research. Titled “Navigating the Shift: A Just Transition Roadmap for Maharashtra’s Automobile Sector,” the report analyzes the potential impact of the EV revolution on jobs, businesses, and the environment in the state.
Key Findings:
- Rapid EV Adoption: Maharashtra has witnessed a significant surge in EV sales, particularly two-wheelers. The state boasts the highest number of EV sales in the country, accounting for 12.6% of all India’s passenger vehicle segment (2Ws, 3Ws, and 4Ws) in 2023.
- Job Growth Potential: The report challenges the notion of widespread job losses due to EVs. It projects an increase in total jobs within the passenger car manufacturing sector, with estimates ranging from 1.7 million currently to 3.3-3.7 million by 2036 under various policy scenarios.
- Skilling and Reskilling Needed: However, the report emphasizes the need for significant skilling and reskilling initiatives to equip the existing workforce with the necessary skills for the EV ecosystem.
- Environmental Benefits: The transition to EVs presents a crucial opportunity to address environmental concerns. The report highlights the potential for reduced pollution and improved air quality in Maharashtra.
The Roadmap:
The iForest report proposes a comprehensive roadmap for a just transition in Maharashtra’s auto industry. Key recommendations include:
- Government Intervention: The report calls for proactive government policies to support the development of the EV ecosystem, including infrastructure development, production incentives, and skill development programs.
- Industry Collaboration: Collaboration between automakers, training institutions, and research bodies is crucial to foster innovation and ensure a smooth transition for the workforce.
- Social Safety Nets: Social safety nets are essential to support workers who might face job displacement during the transition.
By implementing these measures, Maharashtra can ensure a smooth and sustainable transition to a future powered by electric vehicles, safeguarding its position as a leader in the Indian automobile industry while creating a workforce with the skills to thrive in the new era.
