"The top two biggest challenges for the Indian auto sector is to recruit and retain skilled professionals and to develop an efficient supplier base which can match global standards - in this order of importance. I think these two are the key challenges presently faced by the Indian auto companies."

-  Leader of a global Auto giant in India

Times Ascent 18 th May 2011

 

"It is estimated that the industry would require huge numbers of trained personnel, if our country has to become an auto-manufacturing hub for the world. Presently a vacuum in middle to top-level management is being felt. "

- Strategic Occasional Paper 129 by EXIM Bank of India

 

 

 

While the Indian Automotive and Ancillary Industry have key inherent strengths, one of the critical bottleneck shortcomings is the low productivity of human capital.

Comparison of productivity - Vehicles produced per person employed 

Among Leading Vehicle Producing Nations

 

The major challenges faced by the HR in recruitment are:

• The Industry is Leading - The Automotive Industry is competing to improve globally, especially in terms of technologies. The HR professionals are expected and required to keep in tune with the changing times.

• Gratitude - Recruitment is tough and challenging. While the jobs are even getting risky, the ability to attract middle management candidates to the brand can get tough.

• Constant Pressure - Did someone say war-footing? The speed of the recruitment process has to match the speed of this process industry. While the process has to be stringent, it also needs to be adaptive and responsive to the immediate requirements.

• Costs - The constant cost pressure on Automotive and Ancillary manufacturers make it a daunting job for the HR top brass to attract and retain talent in the given cost structures.

• Retention - While the pride of having worked for a single automobile organization is still around, the new breed of performers has a different value system that needs to be led well.