The automobile industry has increased its advertising budget as it is optimistic about the festive season, expecting it to be one of the best in the last few years.

According to carmakers in India, including Maruti Suzuki and Tata Motors, the auto sector is growing continuously as the need for personal mobility is growing.

Carmakers revealed that the ad spends are likely to increase this time which will resonate in the sales and customer responses too.

“The industry is going to see loads of launches and ad spends will definitely increase,” said Vivek Srivatsa, Head, Marketing, Sales and Service Strategy, Tata Passenger Electric Mobility.

Since the festive season is also coinciding with the ICC Men’s World Cup, automobile brands have amped up their marketing budgets along with launching more products and aggressive campaigns.

The marketing budget for Maruti Suzuki is up by 15% compared to last year and it recently launched a campaign on the occasion of the 6th anniversary of its ARENA channel.

“We have the World Cup also this time so we will be rolling our campaigns there too. The budget has increased by 15% over the last year. The annual budget for the marketing campaigns this year is close to about Rs 1,000 crore,” Shashank Srivastava, Senior Executive Officer- Marketing and Sales, Maruti Suzuki, said.

According to the TAM Adex report on the auto industry, ad volumes for the sector on TV witnessed growth of 50% during Jan-Jun’23 compared to Jan-Jun’22 with Maruti Suzuki India ascending to 1st position with 11% share of ad volumes.

The others among the top 10 advertisers for H1 2023 are TVS Motor Company (11%) followed by Tata Motors (8%), Hyundai Motor India (6%), Suzuki Motorcycle India (6%), Renault India, Bajaj Auto, Hero Motocorp and Okaya EV (5% each) and Yamaha Motor India at 4%.

Srivastava said that there has been an upswing of 24% in retail so far since Onam in August.

“Festive season kickstarted with Onam in August and the beginning has been good. We saw an upswing of almost 24% in retail. We are also looking at the overall festive season which is for 83 days this time. We are expecting one million car sales in the industry in this period.

“It will be the first time ever for the industry to cross the one million mark in the festive season. The last highest number of sales was 9.34 lakh in 2021. The beginning has been good and it is currently going strong. We’ve seen an uptake during Janmashtami and Ganesh Chaturthi period also,” he said.

Udit Malhotra- Head of Marketing, MG Motor India, also expressed confidence that this festive season will be very exciting and that he looks forward to welcoming more customers to the MG Motor family.

“We are optimistic about the upcoming festive season as we witness great excitement among individuals. MG Motor India has announced its centenary campaign ‘100 Years of Driving Smiles’ to enhance customer experiences. The duration of this campaign will be from August to November,” Malhotra said.

The auto sector is relying heavily on the strong H1 and says that the growth will be sustained in the second half as well with a lot of launches. Srivatsa shared that the festive period looks positive for the sector.

“The auto sector has been growing continuously as the need for personal mobility is growing. The festival season will be one of the best in the last few years. H1 for the sector was strong and the growth will be sustained in the second half as well,” he said.

MG Motors’ Malhotra said that as a customer-centric brand, MG Motor India embarks on celebrating 100 years with its customers which coincides with the festive season.

“The marketing campaign is centred on 100 years of driving smiles which is dedicated to enhancing customer journey and expressing our heartfelt gratitude to our loyal patrons who have been integral to our remarkable journey. We have put in place different initiatives to engage and delight our existing customers. These benefits are one of the many such initiatives for our valued customers who are at the heart of our festivities,” he said.

The auto sector is leaving no stone unturned in ensuring the best marketing of their products by using all the popular media – TV, OTT, radio, digital.

Carmakers are stressing the use of radio and ensuring vernacular communication to attract more consumers.

“During the festive season, in-person retail engagement becomes crucial. Radio has emerged as a powerful tool for connecting with consumers in the last mile. Additionally, TV, newspaper, cinema, and OTT platforms have given thrust to brands, serving both long-term brand building and rapid promotion of products,” said MG Motors’ Malhotra.