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Best Employers in Automobile Industry

The Indian automobile industry is one of the largest sectors in India and a key contributor to the country’s economy. Factors like increasing purchasing power, new product launches, booming exports and easily available finances have resulted in increase in sale volumes in the sector. Production wise, the industry crossed the landmark of 10 million vehicles in 2006-07 and witnessed a CAGR of 15.5 per cent.

The industry is segmented into four categories: two wheelers which has a market share of 77%, passenger vehicles which covers 14% of the share, three wheeler segment which has 5% share and finally the commercial vehicle segment which captures 4% share of the market.
Recognizing the potential of Indian Automobile sector, leading global brands are entering Indian markets and Indian companies are going for acquisition of global automobile companies. The industry is providing direct and indirect employment to 1.31crore people. It is expected to provides additional employment to 25 million people by 2016. The auto industry in south is likely to generate almost 5 lakh new jobs over the next ten years.

HR issues and trends in auto sector:
Attrition and skill migration: The sector is also grappling with high attrition rates. With attrition rates elevating to reach 15-20%, the auto industry is becoming dependent on contract workers. There is a shift of skills within the industry only. Skilled people are shifting their bases from auto component industry to domestic and global OEMs. This seems to be result of unmatched compensation packages between domestic and global players. To address this issue companies need to ensure that employees get a proper career path in the sector or company.

Talent Crunch: The sector is facing a shortage of skilled manpower. Moreover many top-level executives at automobile companies are quitting to join either rival firms or new industries altogether. They are willing to explore new avenues. Moreover, most of the auto players are reserving top positions for expatriates rather than escalating an India to that position.

Lower Salary hikes: Automobile companies pay less salary compared to other sectors such as IT and FMCG. According to a recent study, automotive sector falls among those sector which will see lowest salary hikes (of about 13 per cent) as compared to others sectors like real estate which will witness highest hike of 25 per cent.

Reverse Brain drain for R&D:
The auto industry is investing heavily in R&D doe to which a large number of Indian expatriates are returning back to India so as to work on R&D in domestic players like M&M, Ashok Leyland, Tata Motors, etc.

Best Workplace Rankings by NaukriHub is an attempt to rank companies on basis of various HR practices, procedures and policies prevalent in the industry . Ten companies are selected on random basis and ranked on various parameters like recruitment practices, retention rates, compensation policies, work culture, recognition for good work, flexible work timings, et al. The scores are consolidated on the basis of data collected through recent surveys and studies conducted by renowned names like Business Today, IDC Data Quest, Hewitt Association, NASSCOM and our own study of the organization.