AI, skills take priority as talent gaps top auto sector concerns: Rockwell Report
Smart Manufacturing
: Automotive Edition report.
As per the report, in 2025, 37 per cent of
auto manufacturers
identified change management—the ability of employees and departments to adapt to new technologies—as their most pressing workforce-related challenge. This was followed by concerns over the rising cost of skilled labour (36 per cent), employee retention (33 per cent), and difficulty in finding new employees (31 per cent). The report highlights the significant role AI is acquiring in the automotive industry.
Dilip Sawhney
, Managing Director,
Rockwell Automation India
, observed that Indian manufacturers are placing greater emphasis on AI, data and talent development as part of broader digital transformation efforts.
Technology investment remains strong
Many automotive and tyre manufacturers continue to invest in AI, production monitoring and cybersecurity. Over 62 per cent cited long-term business impact as the primary motivation for technology investment, followed by expansion or capacity growth (58 per cent).
Increased confidence in AI
The perceived risks associated with AI have declined since 2023 (14 per cent in 2025 vs. 24 per cent in 2023). Common applications include quality control, robotics, and process optimisation. Many respondents reported plans to invest in generative AI, robotic process automation (
RPA
), and other digital technologies.
Business outcomes are central
Key drivers for adopting technology remain consistent — improving quality, reducing costs, and minimising risks related to safety, cybersecurity and regulatory compliance, the report noted
Shifts in skills demand
In response to a projected shortage of 7.9 million workers by 2030*, manufacturers are not only investing in automation, but also seeking workers with experience in AI and soft skills such as communication, adaptability, and analytical thinking.
The 'State of Smart Manufacturing Report' is part of Rockwell Automation's broader global research initiative, which surveyed over 1,500 decision-makers across the manufacturing sector.
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