Indian automotive sector employment outlook 2009-2020

The Indian automotive sector was estimated to employ over a million people in 2020. The employment figures were relatively small compared to the EU automotive industry that employed around 14 million personnel. In the United States, part dealers and motor vehicle sector had around two million employees on their payrolls in March 2019. Even then, India had one of the largest global automotive markets in 2019. The sector however, started facing the effects of a slowdown in terms of sales and rising inventory numbers mid-way through 2019.

Employment loss

Slumping sales and halts in production triggered massive job cuts throughout the industry. Component manufacturers and dealers had to lay off around 350 thousand workers since April 2019. The adversity was not limited to automakers only. Tire manufacturers also had to cut down the workforce due to the sales slump. Temporary suspension periods were also implemented by leading carmakers in the face of declining demand.


The automotive industry contributes a share of about seven percent to India’s GDP each year. It also accounted for almost half of the country’s manufacturing output. Maruti Suzuki, the country’s biggest carmaker, reduced its temporary workforce by about six percent. Tata Motors and Mahindra on the other hand, faced periods of stagnant productions.

Automotive sector direct employment in India between 2009 and 2020

Employment in thousands
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Release date

April 2017



Survey time period

2009 and 2015

Supplementary notes

*Projected value.

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Statistics on "Two and three wheelers in India"

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