Today’s reports revealed that the Indian auto sector led India Inc., offering an average 10.1% salary increase in FY 2025—well above the 6–8% typical across other industries news18.comeconomictimes.indiatimes.com.

Why the Hikes?
This surge reflects a heated market for skilled talent—EV engineers, software experts, supply chain professionals, and digital transformation leaders are in high demand. OEMs and tier‑1 suppliers are bidding aggressively to secure and retain this workforce amid rapid industry changes.

Departmental Breakdown

• R&D & Engineering: Highest hikes to recruit EV, autonomous driving, and connected car specialists.

• Manufacturing & Operations: Increased wages tied to output growth and productivity needs.

• IT & Digital: Bonuses for roles in data, cybersecurity, and EV charging infrastructure.

Recruitment & Retention
Companies are responding to rising attrition by offering better raises, while recruiters find multiple offers per candidate common. OEMs now include upskilling budgets, remote/hybrid roles, and flexible options.

Economic Competitiveness
Auto salaries rising faster than in tech or FMCG reflects new industry priorities. These wage increases also support consumption—they’ll ripple into finance, retail, housing sectors—reinforcing the economy at large.

Risks & Sustainability
With inflation and margin pressures at play, sustained double-digit hikes might strain smaller suppliers. Balance between rewarding staff and maintaining competitive product pricing will be key.

Future Outlook
The auto industry’s ability to attract talent makes it a growth hotspot. Continued investments, expansions in EV and connected technologies, and government incentives are likely to keep wage growth strong into FY 2026.