Maruti, Hyundai, TVS, Hero MotoCorp Gives Salary Hike, Promotion To Employees As Auto Sales Surge In India!
After the recovery of vehicle sales in the domestic market during the festive season, many auto majors are ready to roll out increments to their employees.
Annual Increments For The Employees
As per the reports,Mahindra and Mahindra (M&M), India’s largest tractor manufacturer and a leading maker of utility vehicles is all set to roll out pay hikes to its staff effective from December.
Normally, automakers declare their increments on August 1 but this year it got affected due to the disruption caused by the Covid-19 crisis and its subsequent impacts on sales.
“With a reasonable amount of normalcy restored, we’ve decided to go ahead with annual increases now. Our increments will be effective December onwards and will not be backdated, ” said Rajeshwar Tripathi, the Chief Human Resource Officer (CHRO) at M&M.
Maruti Suzuki, Hero MotoCorp Increments
Apart from M&M, other carmakers including Maruti Suzuki, Hyundai, Hero MotoCorp, TVS Motors, Royal Enfield, MG Motors and Kia have also decided to give annual increments to employees over October and November.
The country’s largest carmaker, Maruti Suzuki India also announced an increase in salary for its employees across cadres in October, according to the R Uppal, the senior executive director for HR and IT at Maruti Suzuki.
In case of Hero MotoCorp, the two-wheeler maker’s merit-based pay hikes along with the performance-based variable payouts were higher than the industry average and were made for all staff from workmen to senior management as mentioned by the spokesperson.
In addition to that, around 15 percent of employees were also promoted to the next level.
Why Would This Happen?
The increments show the positive sentiments in the auto segment as the sale of passenger vehicles jumped 17 per cent in the last three months, buoyed by demand during the festivals of Dussehra and Diwali.
Additionally, the automakers are leaving no stone unturned to keep the morale of staff high.
in the past couple of months, the recovery rate is better than expected due to the surge in rural demand and entry-level passenger cars as well as two-wheelers.
A Positive Vibe In Auto Segment
Apart from this, the Auto companies, which had taken stringent measures due to cash flow issues, are now reversing salary cuts, giving increments and bonus, said Kavan Mukhtyar, partner & leader, Automotive, PwC.
While a positive vibe is going on, the two domestic truck majors namely Motors and Ashok Leyland have decided on not to provide increments this year.