Fat packages not enough; executives now want luxe cars too

Bangalore: Apart from hefty salary packages and other offerings, CEOs in India now demand costliest cars too as a part of their compensation. They choose expensive latest models such as Mercedes-Benz, Beamers, Audis, Porsches and Rolls-Royce.

The car mania is not restricted to a particular sector. ITes, BPO, banking, aviation and energy are among the major sectors from which CEOs ask for latest model cars, reported The Economic Times. Recently, a newly appointed CEO of a major retail company was offered a hefty salary package, but his demands went much beyond just monetary considerations. When he asked for a Mercedes SLK 500 to drive to work, the company was happy to oblige.

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"We are selling around 30 percent of our cars to corporate customers. We have re-jigged some of our models like the 320i, which is more chauffeur driven and offers more space at the rear. In the second year of operation in India, we have seen a sizeable shift towards the larger and expensive, 5Series coming in the Rs 40 to Rs 50 lakh bracket," says Peter Kronschnabel, President, BMW India.

Head hunting firms also are in the opinion that cars are the crore-competence at the top of the job heap. "For CXOs, cars speak volumes. And unlike in the past, the choice for the 'executive car' now goes beyond Mercs to Audis to BMWs with new offerings being added each year. In most cases, the size of the car is directly proportional to the negotiating strength or position of the candidate. Hence, for indispensable talent, companies do not mind providing just about anything on wheels," said Atul Vohra, Transearch India Managing Partner.

Kris Lakshmikanth, CEO, Head Hunters India says, "There have been cases where cars have played a vital role in a make or break situation. An energy company had to negotiate for six months before they gave in to the demands of the desired candidate. Reason, he wanted a luxury sedan, at least on par with his last car if not more."

Moreover, mid-level executives, employees at mid-level managerial positions or key sales personnel are also getting offers of Honda Accord, Toyota Camry and Skoda Laura, and mid-size sedans like the Hyundai i10 or Accent, Swift or Dzire and Skoda Fabia.