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Auto Manufacturers Hand Out Promotions, Increments As Industry Recovers Faster Than Expected

July 22, 2020 by www.drivespark.com

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oi-Rahul Jaswal
By Rahul Jaswal

Published: Wednesday, July 22, 2020, 16:01 [IST]

The Auto Industry is showing signs of recovering faster than expected and auto manufacturers have started their increments and promotions cycles after having assured employees that there would be no salary or job cuts.

According to The Economic Times, Toyota Kirloskar Motor has announced salary hikes for employees that do not belong to the Workers’ Union. Hyundai Motor India has already increased wages of employees at its facilities and is now in the processes of finalising increments for its executive employees.

Maruti Suzuki India Limited said it was likely to roll out bonuses and incentives over the next two months, while MG Motor said they were planning to announce increments faster than planned.

Mr Stephen Sudhakar, the Senior Vice President for People Strategy & Business Support at Hyundai Motor India said, “We are in the process of firming up our plans for the junior, middle and senior-level executive cadres.“

Mr Rajeev Chaba, the Managing Director at MG Motor India said, “With things getting back to normalcy, we are currently planning to give increments and promotions in the next 2-3 months, which is sooner than what we had anticipated a few months ago.“

Between 10 and 14 auto manufacturers have released or are in the process of releasing incentives and bonuses for the last 18 months. Increments too are being rolled out by Honda, Toyota and Renault with the brands offering between 4 and 14 percent.

While some brands have begun their promotions and increments processes, others have decided not to roll out any promotions, increments, bonuses, and incentives.

Mr Rajeshwar Tripathi, the Chief Human Resources Officer at Mahindra & Mahindra said that the brand had decided against forced reductions in salaries, was going ahead with performance pay and promotions, but will not increase salaries this year.

Thoughts About Manufacturers Rolling Out Promotions And Increments

The outbreak of the Covid-19 pandemic and the multiple lockdowns called for have coincided with pay-revision cycles of almost every company. The last few months have borough major anxiety to employees, who must be relieved that some brands have started rolling out performance payouts.

We hope the situation improves for the dealer network across the country. Dealers have been struggling to stay afloat, and have cut jobs and salaries during the lockdown.

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