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.
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