Despite the lockdown due to coronavirus pandemic, French car manufacturer, Renault India is giving a pay hike of 15% to its employees and promotions for the fiscal year 2021. The company is giving the pay hike to 250 employees and promotions to over 30 executives, with effect from August 2020.
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 salary hike for FY 21 is larger than FY 20 wherein the company paid just 10-12% hike.
Interestingly, 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 also decided to bear the interest cost on unsold inventory at the dealers.
Renault India Spokesperson said that the reason behind increment and promotions was to boost the morale of our employees.
Auto experts say, 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.
Renault India Pvt Ltd is a wholly owned subsidiary of Renault S.A., France and currently offers five models in the Indian markets. In 2005, Renault marked its presence in India.
With the launch of the Renault KWID, Renault India registered a growth of 160% in domestic sales in December 2015. In March 2016, Renault India launched the new Renault DUSTER which continues to further its market share. In November 2017, Renault India redefined India’s style statement with the launch of the Renault CAPTUR. In August 2019, Renault India offered ‘Space for Everything’ in a car with the launch of the super spacious, ultra modular Renault TRIBER. The most affordable Renault car in India is Kwid.
The French government, which owns a 15% stake in the company, has given a guarantee of up to 90% of the total amount borrowed.
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