The automotive industry is transforming at lightning speed with advancements in electric mobility, automation, and a major catalyst—Artificial Intelligence. Companies face the challenge of keeping their workforce adaptable while addressing skill gaps. At the same time, retaining top talent requires more than just competitive pay, and on top of that, maintaining employee engagement is becoming an increasing challenge.

As Industry 4.0 demands a workforce equipped with new digital and technical skills, the growing skill gap and talent scarcity make this an even tougher task. So, what’s the right way forward?

In an exclusive conversation with People Matters, Sarma Chillara, CHRO of Škoda Auto Volkswagen India Pvt. Ltd., shares how the organisation is committed to building a future-ready workforce through continuous learning, AI integration, and leadership development—driving innovation while fostering a culture of adaptability and growth.

Read here the detailed interview: 

Q. How do you define resilience and agility within the workforce? What steps have you taken to foster these qualities in the Škoda Auto Volkswagen India employees?

At SAVWIPL, resilience is about empowering our people to navigate challenges without losing momentum, and agility is about equipping them to embrace change with confidence. For us, these qualities are not just expectations but a way of working, embedded in our culture through continuous learning and collaboration.

We invest in our people through initiatives like Learning Hour, e-learning partnerships with Coursera and LinkedIn Learning, and Magzter subscriptions, giving them the flexibility to learn at their own pace. We are also introducing micro-learning and AI-assisted learning to make skill development more accessible and relevant.

To ensure adaptability, we have made job rotation and cross-learning a core part of career development, helping employees gain diverse experience and stay prepared for evolving roles.

Our structured career framework aligns learning with business needs, ensuring our workforce is ready for both today’s demands and tomorrow’s opportunities.

Q. How do you ensure that your people strategy adapts to an evolving industry landscape while keeping employees engaged and motivated?

The auto industry is evolving rapidly, and at Škoda Auto Volkswagen India, we ensure our people grow with it. Our focus is on continuous learning, enabling employees to stay ahead in areas like digital tools, automation, and sustainability.

With a well-defined career framework, we map competencies, address skill gaps, and provide targeted training to prepare our workforce for future challenges.

We have partnered with premier institutes to offer higher education programs, giving employees the opportunity to deepen their expertise and take on larger roles. Our dedicated initiatives for high-potential talent help build a strong leadership pipeline, ensuring we stay competitive.

Job rotations are a key part of this journey, offering hands-on experience across functions and fostering adaptability.

Beyond upskilling, we believe engagement is equally important. Clear communication, well-structured growth opportunities, and a culture that values and supports employees ensure they feel motivated and empowered to contribute meaningfully.

Q. How has the role of HR evolved within SAVW India in response to digital transformation and changing business dynamics? Can you share examples of how HR has directly contributed to business transformation, and what are some crucial skills HR leaders need to achieve this in the automotive sector?

As part of the SAVWIPL Group, we focus on developing a workforce that evolves with the industry. With the transition to digital and electric mobility, reskilling has become a priority. Through initiatives like Industry 4.0 training, Smart Manufacturing Training, and e-mobility programs, we equip employees with the skills needed to stay ahead. Our HR team works closely with business leaders to identify skill gaps, design relevant training, and ensure our people are prepared for what’s next.

We actively reinforce the importance of continuous learning through dedicated communication forums. These platforms create awareness around reskilling and upskilling, encouraging employees to build new competencies that align with business priorities.

For HR leaders in the automotive sector, adaptability, digital fluency, and a strong business perspective are crucial. The focus remains on ensuring the workforce is ready not just for today’s challenges, but for the future of mobility.

Q. How is SAVW India integrating generative AI and automation into its workforce planning strategies? How are you balancing the adoption of AI and automation with the need to retain human talent?

Creating the right balance between technology and human expertise is essential for enhancing efficiency and productivity. We are actively integrating AI in areas where it adds real value, within our internal processes specifically in  recruitment, managing data & analytics.

Analysing & measuring GAPs within existing  and future skill requirements We are also exploring applications on augmented reality to enhance customer experiences, enabling them to interact with car models and new launches in an immersive way.

However, leveraging AI effectively starts with ensuring data accuracy, at source as the authenticity of output is dependent on the right inputs. Equally important is empowering employees to use AI responsibly and strategically, so its benefits are sustained over time.

Encouragingly, our internal feedback shows that employees see AI as a tool for self-improvement and innovation, helping them think beyond conventional ideas and explore new possibilities

Q. Are there specific areas within HR and workforce management where AI is playing a transformative role?

AI is gradually transforming how we manage HR and workforce operations, helping us work smarter and more efficiently. We are leveraging AI-driven dashboards to provide real-time insights and using intelligent shortlisting tools to make recruitment more effective.

• By automating repetitive tasks and optimising workflows, AI allows our teams to focus on more strategic and value-driven initiatives. We are also developing intelligent systems to track existing skills mapped to specific job families and job clusters.
• Measure skill GAPs between available and future skills enabling us to design strategies on external hiring, upskill or reskill existing resources and baseline evolving roles as per our business and industry needs. 
• We are also integrating AI into employee support systems, with chatbots handling common queries and providing quick, accurate responses.

In addition, we are developing a dedicated HR app, a one-stop platform designed to simplify access to information and services for our employees. While AI is still evolving, its ability to enhance decision-making and improve employee experience is already making a meaningful impact.

Q. What are the core elements of your leadership development programs, and how do they align with your overall business objectives? How do you ensure these programs address both the current and future leadership needs of SAVW India?

We invest in leadership development through structured programs designed to build real-world skills in decision-making, team management, and change leadership.

Our C-Suite Learning Programmes, along with partnerships with globally renowned institutions like Wharton Business School, the University of Michigan, and leading Indian institutes such as IIMs and ISB, provide leaders with valuable learning opportunities tailored to business needs.

Our approach is guided by competency mapping and career architecture, ensuring that each learning intervention aligns with individual and organisational growth.

To offer employees greater flexibility, we host an annual Learning Fair, where various institutes present their programs, allowing employees to explore and enroll in courses—some of which are fully or partially sponsored by the organisation.

Additionally, as a multinational company, we provide top talent with international exposure through challenging assignments and opportunities to learn new technologies firsthand.

These initiatives are continuously refined to keep pace with evolving business demands, equipping our leaders with the skills and experiences needed to drive long-term growth and navigate future challenges.

Q. Could you share insights on how leadership development has contributed to building a culture of innovation and sustained growth at SAVW India?

Strong leadership defines company culture. We believe that when leaders are empowered to take initiative and drive new ideas, it fosters a culture of innovation and collaboration.

Our focus on leadership development has not only strengthened problem-solving and teamwork but also contributed to long-term business growth.

We take pride in nurturing homegrown leaders, with several members of our top leadership team having risen through the ranks.

This has been made possible through our continuous investment in talent development. Our programs engage high-potential employees early on, equipping them with the skills and experience needed to take on strategic roles and lead with confidence.

We also send our employees for a short term (3 months – Talent Exchange) and long term assignments (18 months and more) to various offsite locations where they acquire skills required keeping in mind the future business scenarios. These contribute to the future leadership program.