Auto festive AdEx set to grow 10-15% amid GST cuts and Diwali optimism

As GST rationalisation has brought affordability and optimism, automakers are ramping up digital spends, doubling down on family-driven storytelling, and blending emotional and economic triggers to make this Diwali their strongest yet.

With Diwali right around the corner, India’s automobile sector is revving up for what could be one of its most promising festive seasons in recent years. Retail auto sales surged by 34% during the Navratri period as GST cuts and festive offers fueled demand, according to FADA. With GST reforms and festive optimism in the air, automakers are entering this Diwali season with renewed confidence. The recent GST rationalisation, reducing tax on small cars and two-wheelers from 28% to 18%, has reshaped both consumer sentiment and marketing strategy.

Deepak Sonpar, Managing Partner, WPP Media India, called it a “game changer,” predicting “a projected 10-15% surge in festive auto sales, with price drops of ₹40,000 to ₹1.6 lakh in mass segments.” He added that “consumer sentiment is very positive, with dealers reporting record pre-bookings” and noted that “festive AdEx in auto is tipped to grow 10-15% over year ago with digital commanding a bigger share (45-50% for festive campaigns).”

Echoing this optimism from a brand lens, Virat Khullar, AVP & Vertical Head, Hyundai Motor India Limited, said, “At Hyundai Motor India Limited, customers remain at the heart of everything we do and the festive season gives us an opportunity to make their car-buying journey even more rewarding. This year, we have double-digit growth in our promotional investments over last year’s festive campaign.”

Together, regulatory reform and brand confidence are boosting a revival that blends affordability with aspiration, setting the tone for a vibrant Diwali market.

‘Shubhness’ and emotions continue to steer creative strategy

Even as pricing reforms redefine affordability, emotion remains the driver of automobile storytelling. Nishant Pratap, Group Executive Creative Director - South, FCB Kinnect, highlighted that while the storytelling style evolves, the emotional essence remains the same.

“When it comes to the festive season in India, it’s safe to say the themes of family and shubhness, that wonderful warm feeling that magic and celebration are in the air, still dominate,” he said. “It is the stories that will change. But the recipe remains the same, moments of warmth, of closeness, of making unforgettable memories, of laughter and merriment and togetherness.”

Hyundai’s campaign led by Pankaj Tripathi is built around this very idea. Khullar shared that the brand is seizing this opportunity with a 360-degree campaign, designed to strike an emotional chord with Indian families, while coupling the emotional with the economic “backed by the dual advantage of GST reforms and exclusive festive offers.”

By merging policy-driven affordability with the timeless pull of emotion, automobile brands are ensuring that this Diwali feels both aspirational and achievable for consumers.

Digital drives the festive highway

If Diwali campaigns once revolved around big-budget TV films, this year’s creative highways are undeniably digital-first. Sonpar shared that “while TV and print see a measured revival this year, the industry is witnessing an accelerated shift toward digital-first launches, digital AdEx in the festive quarter is set to rise ~25%, almost double the pace of legacy formats.”

This digital momentum is not just about efficiency; it’s about experience. “Brands are innovating with ‘phygital’ activations,” Sonpar added, “blending mass-reach platforms (TV, OOH) with precision tactics (CTV, retail, influencer commerce) to drive both aspiration and conversion.”

From the creative side, Pratap sees brands not just adapting but demanding this shift. “They aren’t just opening up to it. They expect it. Demand it, even,” he said. “TV is given the due respect given to the eldest in the family. But the young ones? They’re the ones who’re charting out new frontiers. And we and our clients are here for it.”

This generational metaphor captures the balance brands are striking, keeping television’s emotional scale while embracing the agility and experimentation of digital storytelling.

A new marketing blueprint beyond Diwali

For most automakers, this season is more than just a short-term spike, it’s the start of a strategic reset. Sonpar highlighted that “GST rationalisation is set to recast automobile media planning beyond 2025, anchoring a shift to consumer-centric, price-sensitive, and agile promotional strategies.”

He believes this will reshape everything from campaign calendars to dealer communication. “Brands and agencies are rethinking year-round calendar planning, anticipating prolonged demand tailwinds, new product cadence, and an ‘always-on’ approach to media,” Sonpar explained.

The optimism is matched by creative ambition. Pratap added that the brands standing out will be those that “try and tell new stories in new ways,” arguing that “the more memorable the ad, the more the ROI.”

As the industry shifts gears for Diwali, one thing is clear that India’s automobile brands aren’t just celebrating the festival, they’re accelerating into an era of accessibility, creativity, and connection.

GST cuts, evolving consumer expectations, and a willingness to experiment with storytelling and digital engagement are reshaping how auto brands connect with audiences. As the festive lights brighten cities across India, the sector is moving toward a future defined by creativity, agility, and relevance.