According to Deloitte’s ‘Performance and Rewards Trends Study’ for automotive producers, shared exclusively with the Economic Times, automotive companies will likely give a 10.1% salary hike in FY25.
As per the report, the average salary hike expected from other Indian corporate sectors is around 8%. With its double-digit hike, the automotive industry is leading the charge, outperforming most industries in India.
The rise in salaries can be attributed to high demand for talent in areas like electric vehicles, research and development (R&D), product, digitalisation, automation, artificial intelligence (AI), and machine learning (ML).
FY25 marks the fifth year in a row that the automotive industry is giving out double-digit pay hikes, though the number has been steadily decreasing over the last three years. In FY24, the automotive industry provided a salary hike of 10.5%.
Industry experts have stated that the top performers within the automotive industry will certainly receive double-digit hikes or higher this year. As per the report, top performers are expected to get an increment of 20-25% along with promotion. Similarly, critical talent will likely see an increase of 15-20% in their salaries.