Hyundai India to hike worker salaries by ₹31,000 over three years

Hyundai Motor India has agreed to raise employee salaries by ₹31,000 per month over three years under a new wage settlement signed with its recognised workers’ union, Business Standard reported.

The agreement, concluded on Wednesday with the United Union of Hyundai Employees (UUHE), will remain in force from April 2024 to March 2027. The settlement sets what the company called an “industry-best” pay revision, structured in three tranches of 55%, 25% and 20% of the total increase. 

Hyundai Motor India, the country’s second-largest carmaker, said the package reflects its long-term people strategy. “At Hyundai, our people are the cornerstone of our success,” Youngmyung Park, function head of people strategy, said in a statement cited by Business Standard. “This agreement, built on mutual trust, respect and constructive dialogue, reflects our shared commitment to fostering a progressive workplace culture that prioritises employee welfare and supports long-term organisational growth.”

The settlement means eligible employees’ monthly salaries will rise by an average of ₹31,000 at the end of the three-year period, setting a new wage benchmark in India’s automotive sector. In addition to wage increases, Hyundai said it would continue to provide best-in-class health coverage and wellness programmes as part of its broader employee welfare agenda.

The United Union of Hyundai Employees, registered in 2011, is the officially recognised body for Hyundai’s workforce. As of 31 August 2025, it represented 1,981 employees, covering about 90% of the technician and workmen cadre. The union said the settlement reflected constructive engagement with management and its ongoing commitment to employee welfare.

Long-term wage settlements are a feature of India’s auto sector, designed to ensure predictability for both employers and workers. 

Hyundai Motor India has been increasing investment in local manufacturing and product development as it looks to strengthen its position against rivals such as Maruti Suzuki, Tata Motors and Kia. The company has also been preparing to scale up production of electric vehicles for domestic and export markets.

The wage settlement comes at a time of heightened demand for skilled technicians in the auto industry. Higher pay packages may help Hyundai retain its workforce in a competitive labour market, but they will also add to cost pressures if consumer demand slows. Shares of Hyundai Motor India rose nearly 4% in recent trading, reflecting positive investor sentiment, Business Standard reported.