Automobile marketers embrace digital innovation and rural reach to navigate a slower H1

As India moves past the festive fervour of late 2024 and into the early months of 2025, the automobile industry finds itself in a familiar cycle. The post-festive period traditionally slows sales momentum, with the first half of the fiscal year showing more restrained consumer activity compared to the festive peaks. During Diwali, Dussehra, and the year-end celebrations, automobile brands usually experience their highest sales volumes, with discounts and launching new models to capitalise on the buying sentiment.

However, Jan Bures, Executive Director Sales & Marketing Director, Škoda Auto Volkswagen India (SAVWIPL) shares, “The Indian automobile industry continues to demonstrate resilience despite the evolving advertising landscape. While AdEx projections indicate a potential slowdown in 2025, the automotive sector remains dynamic, driven by strong consumer demand, new product launches, and evolving mobility needs.”

Growth amid challenges

The Indian automobile industry, ranking third globally behind China and the United States, has shown recovery from pandemic lows. Vehicle retail sales reached 26.1 million units in 2024, finally surpassing the pre-Covid peak of 25.4 million units set in 2018. However, car sales growth slowed to just 5% in 2024. This is considered to be the lowest in four years, signalling challenges, particularly in urban markets.

Rural markets have emerged as a significant growth driver for the automotive industry, notes Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India Limited. "At Maruti Suzuki India, we have witnessed this trend directly in our Q3FY25 performance, where our rural retail growth reached 15% as compared to a 2.5% growth in urban markets."

This contrast between urban and rural performance is reshaping marketing strategies across the industry. The automobile buyer landscape in India shows distinct patterns between urban and rural segments. 

As Gajendra Jangid, Co-founder of CARS24, observes, "The urban buyer prefers a feature-rich SUV or premium hatchback, with sunroofs, ADAs, and connected technology, and the price-conscious rural buyer prefers hatchbacks and entry-level sedans that offer a good resale value and fuel efficiency."

Interestingly, the used-to-new car ratio is improving and is expected to reach 1.7:1 by 2030, with 56% of used-car buyers being first-time owners. This highlights the growing demand for affordability and accessibility.

Mohan Wilson, Director of Marketing & Corporate Strategy at Nissan Motor India, adds, "Consumer sentiment in the automobile sector is evolving distinctly across urban and rural markets. Urban consumers prioritise brand reputation, advanced features, and vehicles that align with their mobility needs, while rural buyers remain more value- and price-conscious, seeking durability and efficiency."

Marketing Priorities in 2025

Automakers are tailoring their marketing priorities to navigate the current landscape while preparing for future growth. Nissan Motor India, for instance, is focusing on expanding the footprint of the recently introduced New Nissan Magnite, which was launched a few months ago.

"Our key marketing priorities for FY 2025-26 revolve around brand storytelling – showcasing Nissan's Japanese heritage and legacy to reinforce its iconic brand positioning, strengthening Magnite's accessibility across key markets, and preparing for Nissan's brand transformation in 2026 – laying the groundwork for an exciting new product lineup tailored for India," explains Wilson.

At Maruti Suzuki, the focus is on enhancing customer experience through strategic content creation and targeted media deployment. Recognising the evolving rural market, Banerjee reveals, "We have strategically expanded our premium retail channel with the introduction of NEXA Studios this financial year — a format that delivers the premium experience of NEXA to rural markets."

Škoda Auto Volkswagen India sees FY 2025-26 as a period of growth and transformation. “It is fueled by our commitment to delivering an advanced, contemporary product portfolio that resonates with Indian consumers across urban and rural markets," according to Bures. 

The company is strengthening brand engagement through a balanced and impactful media mix.

Meanwhile, CARS24 is taking a different approach as a used car platform. Jangid says that the brand believes in addressing the real issues faced by vehicle owners to reinforce its position as a trusted brand in the market.

"Our focus will be on strengthening our technology, expanding our reach, and delivering unparalleled convenience, making car transactions easier, faster, and more transparent for our customers."

Digital-first approach in marketing

As consumer discovery patterns shift, automobile brands are modifying their marketing strategies with increased investments in digital channels. The industry's traditional reliance on print media, where the auto sector led advertising in 2024 with 15.2% of total ad space, according to TAM data, is gradually giving way to more targeted digital approaches.

Jan Bures of SAVWIPL acknowledges this shift. "While we are maintaining a competitive share of our overall budget for advertising and promotions, we are increasing our investments in digital-first strategies, recognising the shift in consumer discovery patterns."

This pivot toward digital is supported by compelling data. According to reports, 72% of new automotive buyers discovered brands on Meta platforms and found creator content on Instagram Reels helpful for vehicle evaluation. 69% of them reported that these platforms influenced their purchase decisions. 

The rise of influencer marketing

The influence of creator content has also become undeniable in the automotive purchase journey. With 41% of potential buyers regularly engaging with vehicle-related Reels, brands are increasingly partnering with influencers to build authenticity and extend their reach.

"We place a strong focus on digital and social media, including influencer engagements, to build the brand and drive consideration to support business growth," says Mohan Wilson of Nissan and continues, "On average, digital makes up around 40-50% of our media mix."

The brand has previously partnered with events like the ICC Cricket World Cup to boost brand visibility and plans to continue evaluating strategic engagements with high-impact properties that align with its brand objectives.

For brands like Maruti Suzuki, the approach is more nuanced. "We prioritise impactful, high-quality content to stand out in a cluttered market, balancing speed with effectiveness in communications," explains Banerjee, adding that they focus on precise media planning, ensuring that the brand can reach customers through their preferred channels.

Brands optimistic for H2

As the industry looks toward the second half of FY 2025-26, there's cautious optimism about a rebound in consumer demand and marketing activities.

"While we will maintain a consistent advertising presence, media spending is expected to increase in H2, driven by seasonal sales trends," predicts Wilson. 

He shares that the festive period in H2 has always played a key role in boosting demand for the auto sector, and that he expects a strong festive season for OEMs in 2026.

Bures comments, "While H1 traditionally sees moderate advertising spending, we anticipate a stronger H2, driven by festive demand, new launches, and an overall uplift in consumer sentiment."

Despite these challenges, the long-term outlook remains positive. The government aims to elevate India's automobile industry to the top global position within the next five years. With a market size of approximately Rs 22 lakh crore, the automobile industry is increasingly tailoring its marketing strategies where the evolving Indian consumer is seen.