Indian Economy News

Automakers take the lead in FY24 salary hikes with double-digit raises

In FY24, India's automotive sector has stood out with substantial salary increases, driven by strong sales growth, according to a Deloitte survey. Automakers, including Maruti Suzuki, Hero MotoCorp, and Hyundai Motor India, have implemented salary hikes averaging 10-14%, exceeding the national average of 9.0%-9.5%. Top performers in the sector have received even higher increments, with Deloitte reporting an average hike of 10.4% across the industry and a notable 16.5% for top achievers, reflecting robust performance differentiation strategies.

Tata Motors emphasized rewarding employees for their pivotal role in driving growth and financial improvements. The sector also witnessed an increase in bonuses this year, averaging 108% of targets, fuelled by strong top-line results and enhanced EBITDA over the past three years. Companies like Mercedes-Benz India underscored their commitment to a high-performance culture, emphasizing career growth through targeted interventions beyond financial compensation. Despite a record-breaking sales year ending March 31, 2024, which saw a growth of 8.4% in passenger vehicle sales to 4.22 million units, the growth rate has moderated in the current fiscal year following a strong recovery post-pandemic.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.