The automotive industry is once again taking pole position in salary growth, surpassing the broader corporate landscape in India with robust double-digit pay hikes projected for the financial year 2024–25. According to Deloitte’s Performance and Rewards Trends Study for automotive manufacturers, shared exclusively with The Economic Times, the sector is expected to award an average salary increment of 10.1%, significantly ahead of the 8% average across other Indian companies.
While some automakers concluded their appraisal cycles in March, others, whose fiscal calendars close in June or later, are currently in the process of finalising salary revisions.
This sustained growth in compensation is largely attributed to a mounting demand for skilled talent in domains such as electric mobility, research and development, product innovation, digital transformation, automation, and emerging technologies like artificial intelligence and machine learning. Human resource leaders from Sonalika Group, Hyundai Motor India Ltd (HMIL), and Skoda Auto Volkswagen India Pvt Ltd confirm that professionals in these areas are commanding premium pay packages.
“Top performers are likely to get double-digit or higher pay hikes this year,” they noted.
Despite a gradual moderation in growth, this marks the third consecutive year of a slight dip in the percentage hike, the automotive sector is still registering double-digit salary increases for the fifth year running.
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“Despite the drop, automotive producers continue to outpace the India Inc salary increment number, which averages at 8.8% for FY25,” said Neelesh Gupta, partner at Deloitte India.
Last year, the sector delivered an average pay hike of 10.5%, marginally higher than this year’s projection. Nonetheless, the current forecast still reflects strong optimism within the industry.
“Salary increase expectations for this year is expected to be in the range of 9.5–10.0%, in line with overall auto industry expectations,” said Amit Sharma, corporate HR head at Sonalika Group.
As the industry continues to evolve with its digital-first and future-ready approach, the demand for niche skill sets ensures that top talent will remain in the driver’s seat when it comes to compensation.
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