Top Indian auto executives saw significant pay hikes in FY26, largely due to performance-linked commissions following a boost in industry sales after GST adjustments. Hero MotoCorp's Pawan Munjal remained the highest-paid, while Apollo Tyres' Neeraj Kanwar saw his compensation nearly double. These salary structures reflect the direct link between company profitability and executive earnings during a period of strong domestic demand.
The Indian automotive sector experienced a sharp rise in executive compensation during the fiscal year 2026, driven by record-breaking sales and improved profit margins across the industry. This trend was fueled by a favorable policy environment, including changes in the goods and services tax (GST) that supported consumer demand and helped manufacturers achieve higher vehicle volumes.
Leadership Compensation Trends in FY26
Hero MotoCorp chairman and managing director Pawan Munjal continued to lead the industry in total remuneration, earning ₹122.31 crore for the year. This payout aligns with the company’s performance, which saw annual sales climb to 6.12 million units, up from 5.90 million units in the previous fiscal year. In a move toward adjusting his pay structure, Munjal reduced his fixed salary by 15% starting October 1, 2026, setting his fixed annual pay at roughly ₹46.65 crore, while a significant portion of his total earnings remains linked to company results.
Apollo Tyres’ vice chairman and managing director, Neeraj Kanwar, experienced the most notable shift in the compensation rankings. His remuneration surged by 95.94% to reach ₹78.41 crore, nearly doubling his FY25 pay. This jump is directly tied to the company's improved operating performance and a rebound in profitability. Similarly, Sudarshan Venu of TVS Motor Company saw his pay rise to ₹64.22 crore, a 46% increase, supported by the company’s milestone of crossing 5 million units in annual sales.
Performance-Linked Pay and Strategic Goals
At Mahindra & Mahindra, group CEO and managing director Anish Shah reported earnings of ₹64.06 crore, reflecting a 35.34% increase. His compensation structure integrates performance pay—including ₹10.2 crore linked to metrics such as return on equity and earnings per share—alongside operational and sustainability targets. Rajesh Jejurikar, heading the auto and farm sector, also saw his pay grow by 33% to ₹50.89 crore, following strong sales of the company's SUV and tractor portfolios.
In contrast, Rajiv Bajaj of Bajaj Auto saw his compensation remain relatively flat at ₹58.87 crore, compared to ₹58.58 crore in the previous year. While the compensation landscape shifted, the overall rise in payouts across these firms highlights how commission-heavy remuneration models have benefited executives during the current cycle of strong sector performance. As companies navigate future demand and potential raw material cost pressures, shareholders will be watching whether these profit-linked payouts continue to align with long-term financial growth and sustainable margin management.