India's auto sector is seeing a huge churn at the top levels

Time of India

20-07-2025

New Delhi: As the automotive sector in
India
undergoes rapid transformation driven by new entrants, emerging business models, and the shift to electric and
digital
technologies, senior-level hiring activity has surged over the past few years.
New-age players and diversification efforts by legacy firms are fuelling a wave of CXO-level transitions, often drawing leadership talent from established OEMs and suppliers.
Industry experts observe that the average tenure of top executives has sharply declined from 6-8 years earlier to just 2-3 years today, reflecting growing investor impatience, evolving business priorities, and rising professional mobility. At the same time, CXO compensation has nearly doubled in the past five years, making the auto sector increasingly attractive to senior professionals.
ETAuto's analysis reveals that close to 50 top management movements were recorded in just the last six months, underscoring the intensity of churn at the top. These include promotions within existing organisations clearly reflecting the new trend in rewarding top performers.
CXO-level churn and a growing emphasis on local leadership have been visible at global players like Stellantis (Jeep, Citroen), Skoda Auto Volkswagen India, and BMW Group India.
'Over the past couple of years, global OEMs have faced mounting challenges in their home markets, which is a double blow of slowing demand and increasingly complex, costly supply chains. In response, many are recalling expatriate leaders and handing over India operations to local executives. While high expat costs are one factor, the bigger issue is their struggle to drive demand in India,' said
Pankaj Dutt
, Managing Partner (India and Global Co-Lead) at the European-headquartered executive search firm Alexander Hughes.
India's largest two-wheeler maker Hero MotoCorp saw a wave of top-level exits this year, with its CEO and Chief Business Officer quitting in February, followed by the Chief Information &
Digital Officer
and HR head. In contrast, Mahindra & Mahindra, riding strong growth, announced key leadership changes in April to bolster its next phase of expansion.
Companies like Uno Minda, TVS Motor, Eicher Motors, Daimler Truck and Nissan India also elevated leaders to top roles.
At Maruti Suzuki, MD & CEO received a three-year extension starting April 2025. In a notable shift, Sunil Kakkar was appointed as the company's first Indian whole-time director.
EVs and IPOs
Beyond this, experts suggest the ongoing EV transition is a major driver of leadership churn in the auto sector. Neelesh
Gupta
, Partner at Deloitte India, noted that disruption from new entrants has heightened volatility in the talent market.
EV-specific leadership roles now command an 18-20% premium over ICE roles, driven by a mix of high attrition (around 7%), talent scarcity, and the shift towards role-based pay over internal parity. 'To retain top talent, firms are increasingly offering long-term wealth creation plans tied to sharp business outcomes, thereby creating a win-win,' said Gupta.
Meanwhile,
Dutt
pointed out that the EV sector still faces a critical talent gap in software, electronics, and product design. 'Engineers are often hired for ADAS roles based on coding skills and not domain expertise, thereby leading to post-launch product issues,' he added.
Amol Gangaramany, Partner- Automotive at ABC Consultants, said firms preparing for IPOs are also proactively reshaping their CXO teams to align with future growth, even if the CEO remains unchanged.
Ola
Electric and Ather Energy are among the few EV players to have filed for IPOs, even as Greaves Cotton has got the SEBI nod. Ola is also one of the companies which has seen notable top-level churn over the past few years.
According to ETPrime, June alone saw multiple senior exits-Chief Business Officer Nitin Golani left within three weeks, Head of Sales Nikhil Upadhye quit in a week, while legal heads
Rohit Kumar
and Marisha Shukla are set to exit by month-end.
'Musical chairs' cycle
Dutt said the auto industry has long been stuck in a cycle of 'musical chairs' when it comes to talent, especially in brand, sales, and distribution functions where companies often want to hire from outside the sector due to a persistent skill gap.
'Despite some openness to cross-industry hiring, talent still circulates within the same pool,' he said. 'Unlike other sectors where marketing drives product development, India's auto sector builds products first and expects marketing to create demand later. This discourages experienced marketers from other industries.'
Dutt added that this structural mismatch, similar to what was seen in telecom, has made auto unattractive to external talent, particularly among global OEMs.
He also highlighted that despite India's push for homegrown players, most domestic OEMs still depend on foreign platforms and powertrains, showing a continued lag in indigenous vehicle engineering.
Below is the list of a few CXO announcements during the Jan-Jun 2025 period.
NamePrevious DesignationLatest AssignmentAnjani KumarCTO, Tata AIG General Insurance CDIO, Ather EnergyAnurag MehrotraVP- International Business & Strategy, Tata MotorsMD, JSW MG MotorGaurav GuptaCGO, JSW MG MotorPresident- Domestic Operations, TVS MotorGaurav JhalaHead of HR- Engg, Tata MotorsVP & CHRO, JSW GreentechHardeep Singh BrarSenior VP & National Head- Sales & Marketing, KiaPresident & CEO, BMW IndiaNidhi KaisthaRegional Sales & Pre-Owned Cars Manager, Porsche IndiaHead- India, Automobili LamborghiniNiranjan KumarGeneral Manager, Mahindra GroupVP & COO, Tata AutoComp GroupParag SatpurePresident & Senior VP, Bridgestone Mobility SolutionsMD & Group CEO, Greaves CottonRahul DesaiCEO- Stampings, Magnets & Composite, CIE AutomotiveCEO, Pinnacle IndustriesRajeev Kumar SinhaCMO, CiplaCMO, Apollo TyresRishi LuharukaCFO, Gabriel IndiaGroup CFO, Force MotorsSanjay BohraGroup CFO, Force MotorsCCO, Eka MobilityVikas SinghMMTC-PAMP IndiaMD, Greaves Electric Mobility
Component makers
According to Gangaramany, the auto component industry which is driven by a mix of multinational players and Indian promoter-led firms is seeing a shift due to a couple of factors.
In the latter, the first-generation entrepreneurs with global ambitions are increasingly hiring seasoned professionals, particularly Chief Marketing Officers, to scale internationally. At the same time, second-generation leaders are taking on strategic roles in family-run businesses, pushing for professionalisation and modernisation as they prepare for board-level responsibilities.
This transition is being accelerated by rising private equity (PE) interest. With fresh capital and ambitious leadership, many promoters are targeting aggressive growth, often aiming to double business within 3–5 years.
For instance, Bain Capital recently made a strategic growth investment in Dhoot Transmission Group. In another major move, Carlyle entered the space by creating a platform through twin acquisitions, securing controlling stakes in Highway Industries and
Roop Automotives
.
Where does the opportunity lie?
Sales, marketing, and brand roles continue to witness high demand, with churn intensifying during industry slowdowns, said Gangaramany.
Gupta pointed out that key leadership roles in demand include Chief Digital Officer, Chief Strategy and Transformation Officer, Head of Digital, Chief Sustainability and ESG Officer, Head of Policy, Chief of Product, and Chief of Design, with the latter two especially sought after by Indian OEMs aiming to stand out in a competitive, tech-led market.
Hiring momentum is also strong in digital transformation, R&D, product development, program management, and design. However, senior manufacturing roles remain largely insulated, typically filled through internal movement.
Gangaramany noted a growing trend of cross-sector hiring at the second-tier level, particularly for CHRO roles, although reverse movement from auto into other sectors is still rare.