Auto companies stick to fast lane in pay hikes, too

New Delhi: Higher sales are set to result in strong salary hikes in the automobile sector, with increments likely to average 10.3% in 2026 compared with 10.1% last year and 9.1% by Corporate India in general, according to a Deloitte study.

The study surveyed more than 20 manufacturers representing over 95% of India's auto market. Salary revisions are pending at around half of these companies, Deloitte said.

Appraisals at automakers come in around July-September, later than the majority of India Inc, Deloitte said. While foreign auto MNCs follow calendar-year cycles, Indian companies tend to move more slowly.


Companies such as JSW Motors and Hyundai are offering higher or similar increments compared with last year, while VE Commercial Vehicles has already given an average pay hike of just over 10% for 2026, their HR heads told ET.

Vehicle sales in India grew 12% in fiscal 2026 ended March 31, boosted by favourable government policies like GST rate cuts, recovering rural markets, and demand for electric vehicles.

The positive business environment has been reflected in compensation decisions across the sector, said JSW Motors chief HR officer Rupam Singh.

The JSW Group company, founded in 2024 and preparing to launch its first vehicle, is offering an average salary increase of 10-10.2% for 2026, higher than last year's average increment of 9.5-10%, Singh said.

Car market leader Maruti Suzuki and two-wheeler manufacturer Hero MotoCorp did not respond to requests for comment.

This year will be the fifth in a row when the auto sector will pay double-digit increments, said Neelesh Gupta, Partner, Deloitte India. "However, the current geopolitical scenario, combined with regulatory changes of labour code impact and minimum wage hike, is causing bottom-line pressures for OEMs (auto makers)," he said.

For Hyundai, this year's pay hike is in line with last year, its vertical head, people strategy, Natwar Kadel told ET. "We are adopting a balanced approach, given macro uncertainties... Additionally, we are significantly differentiating pay based on performance, with higher rewards for top talent while maintaining tighter budgets overall," said Kadel.

VE Commercial Vehicles, a joint venture between the Volvo Group and Eicher Motors, has offered an average 10% pay hike in 2026.

"Though the volumes are better, but the bottom lines are tighter, so there is an impact on the employee cost this year," said executive vice-president and chief HR officer Sudeep Kumar Dev.

Attrition at automotive companies was 12.5% in 2025, according to Deloitte. "However, this is likely to drop in 2026 because of reduced talent mobility considering the geopolitical situation," said Gupta.