Renault India is giving its employees a pay hike of 15 per cent and promotions for the fiscal year 2021 despite the impact of the coronavirus pandemic. The French carmaker has decided to give a pay hike of 15 per cent to 250 employees and promotions to over 30 executives, with effect from August.
According to a report in The Economic Times, the salary hike of Renault India Private Limited (RIPL) only includes its employees and excludes its alliance partner Nissan and Renault Nissan Technology Business Centre India. Interestingly, the hike in salary for FY 21 is larger than FY 20 wherein the automaker offered just 10-12 per cent increase.
Additionally, Renault has also extended financial support to dealers in the form of collateral-free loans to pay salaries of employees, apart from increasing margin on cars and spare parts by 200-300 basis points.
Renault India said that the reason behind increment and promotions was to boost the morale of its staff.
According to auto experts, Renault was well placed amid the pandemic time. Besides, Renault's four cars in Rs 8 lakh bracket, including a hatchback, a sedan, MPV and SUV may give the company an edge over rivals for the next few years, say experts.