In 2025, the global auto industry faces significant challenges. Electric vehicle sales are projected to exceed 20 million units in 2025, but sales growth is slower in some key markets. Trade policy uncertainty is disrupting global supply chains and most automakers reporting an impact on hiring plans. Cybersecurity is a critical concern due to the increasing connectivity of vehicles. The integration of advanced safety technologies, while beneficial, adds complexity to vehicle repair and maintenance.

This Global Insights report explores the implications for employers as they strive to execute strategic workforce plans amid these challenges.

The report highlights six key trends shaping talent strategies in the automotive sector.

Trend 1: Trade Tensions Rev Up

The uncertainty surrounding trade policies has disrupted supply chains, increased costs, and led to cautious hiring practices among automakers. However, as the world works through these trade hurdles, it is critical for automakers to retain the right skilled talent so they are ready when the market recovers.

Trend 2: EV Sales Acceleration Slows

EV sales have grown over the past decade, driven by consumer preference for environmentally friendly alternatives to gasoline-powered cars. But momentum is slowing due to economic pressures, supply chain disruptions, and changes in government policies. Employers must adjust workforce plans to match shifting demand.

Trend 3: Hybrid Skills

Hybrid vehicles offer a bridge to full electrification, easing consumer concerns about range and charging infrastructure. Similarly, employers are seeking versatility in their talent during a period of transition.

Trend 4: Shifting Business Models

The entire automotive industry value chain will continue to evolve, as the industry is transformed by electrification, autonomous driving tech, active safety systems, and new models of vehicle ownership. This will continue to change the roles and skills employers need in the future.

Trend 5: Driving Automatic

The global automotive industry is no stranger to process automation since it was the earliest adopter of factory process automation at scale. However, growing AI adoption is now ushering in a similar era of disruption to knowledge workers. Not only will this change the future of work in offices throughout the automotive sector, AI will also change the industry’s business models as autonomous driving technology continues to scale.

Trend 6: Hiring Stuck in Neutral

It is a challenging time for the industry’s HR leaders, as automation threatens to replace certain roles while talent shortages persist in key areas like operations, IT, engineering, and manufacturing. Shrinking workforces in industrial economies—driven by aging populations—add to the uncertainty, making workforce planning increasingly complex.

Access the full report to stay ahead in a rapidly evolving automotive landscape.