Auto sector ad spends to jump up to 15% this festive season

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India’s auto sector is heading into its strongest festive season in years, with advertising expenditure expected to rise by 12–15% over 2024, according to data shared with Exchange4Media. The jump is fuelled by GST rate cuts, pent-up consumer demand, and strong September sales across passenger vehicles and two-wheelers.

Nuvama Institutional Equities projects that GST cuts and festive tailwinds will drive a rally in auto stocks this quarter, with Maruti Suzuki, TVS Motors, Mahindra & Mahindra, and Hero MotoCorp among the top beneficiaries. Citi Research reported that passenger vehicle and two-wheeler demand rebounded sharply in September, aided by price reductions and renewed rural sentiment.

Early indicators point to record sales. Maruti Suzuki sold 80,000 cars in four days during Navratri, Tata Motors delivered 10,000 vehicles on day one, and Hyundai clocked 11,000 units sold. Maruti expects festive deliveries to cross 2 lakh units, the highest in a decade.

Ad spend growth is being led by digital. Experts estimate 40–50% of budgets now go to digital video, social, and retail media, while linear TV retains 25–35% for sports and movie events. DOOH, transit, and influencer marketing collectively account for 10–20%.

Hyundai’s AVP Virat Khullar said, “We’ve increased promotional investments in double digits this year. Our 360-degree campaign with Pankaj Tripathi is designed to connect emotionally with Indian families.”

With double-digit sales growth and renewed optimism, 2025’s festive season signals a full-throttle return of auto advertising confidence.