Renault gives pay hike of 15%

MUMBAI: French car maker Renault India is incentivising over 250 employees with a pay raise of up to 15% for the fiscal after bucking the trend in 2019 by registering growth. Despite the lockdown drying out cash flows, Renault India Private Ltd (RIPL) has also gone ahead with promotions of over 30 executives, effective August. Riding on Triber MPV's success and a small SUV lined up for the festive season, the company wants to ensure staff morale is high to sustain momentum. 76184235Interestingly, the hike for FY21 is larger than FY20 for RIPL wherein the company offered just 10-12%.The pay hike is only for RIPL employees and does not include the alliance plant with Nissan and the R&D organization Renault Nissan Technology Business Centre India.The legal entity Renault India manages sales and marketing, product planning and programme management, customer service, quality and other support functions like finance, human resources, IT, admin and communication. An email sent to Renault India did not elicit any response.Experts said Renault India is well placed in the existing uncertain environment. With disposable income hit and cash flows reduced, personal mobility will veer towards more affordable vehicles and Renault’s portfolio of four cars in sub-₹8 lakh bracket for the next few years, including a hatchback, a sedan, MPV and SUV may give the company an edge over rivals.The company also extended financial support to dealers in 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 also decided to bear the interest cost on unsold inventory at the dealers.

from Economic Times https://ift.tt/2z51XqC