The global automotive industry is navigating a period of rapid change, with electrification, automation and workforce challenges reshaping how companies operate.
A new report from ManpowerGroup highlights six major trends influencing the sector this year.
Trade tensions disrupt hiring and supply chains
Uncertainty around trade policies is weighing heavily on automakers. According to the report, 91 per cent of auto industry employers say trade policy uncertainty is affecting their hiring plans. Many companies are keeping headcounts flat as they manage higher costs and supply chain disruptions.
EV growth slows but remains strong
Electric vehicle sales are expected to surpass 20 million units globally in 2025, accounting for more than one in four new cars sold. However, growth has slowed in some markets as subsidies decline and economic pressures mount. China continues to lead, while Europe and the U.S. have seen more modest gains.
Hybrid skills in high demand
As technology transforms the industry, employers are looking for workers with “hybrid skills”—a mix of technical expertise and soft skills such as communication and ethical judgment. Operations, logistics and engineering roles are among the hardest to fill, while more than half of workers report they have not received any training in the past six months.
New business models emerge
Automakers are shifting toward software-defined vehicles and subscription-based services. By 2030, recurring revenue from connected services and feature upgrades could reach $1.5 trillion globally. This shift is creating demand for software talent and driving investment in IT innovation hubs.
Automation accelerates
AI and process automation are transforming both factory floors and office roles. Sixty-five per cent of automakers plan to increase automation investments this year, but nearly half of workers fear their jobs could be replaced within two years. Managing this transition and reskilling employees are top priorities.
Hiring challenges persist
Despite economic uncertainty, 74 per cent of automakers say they are struggling to find skilled talent. Aging workforces and retirements are adding pressure, while one in three workers fears they may lose their job in the next six months. Employers are urged to invest in training and knowledge transfer before experienced workers exit the industry.
The report concludes that while technology and market forces are driving unprecedented change, companies that focus on workforce development and adaptability will be best positioned to succeed.
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