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India’s automotive sector recorded a strong festive season performance this year, with total vehicle sales reaching 52.3 lakh. Passenger vehicle sales rose 23 percent, while electric vehicle sales registered a 57.5 percent increase, marking one of the sector’s most significant festive-period expansions.
Amid this growth, digital advertising for automotive brands saw a corresponding increase, according to the latest Automotive Ad Engagement Benchmark Study released by VDO.AI. The report analysed more than 200 automotive campaigns across connected TV (CTV) and display formats.
The study found that CTV continued to perform as the preferred medium for high-intent automotive buyers, delivering a Video Completion Rate (VCR) of 93 percent, above the industry benchmark of 85 percent. Display campaigns recorded a Click-Through Rate (CTR) of 0.75 percent—nearly double the industry benchmark, indicating high-frequency engagement and improved brand recall during the festive demand surge.
According to the report, Remote-enabled CTV and In-Scroll Display were the dominant formats for automotive advertisers during the 2025 festive season. Remote-enabled CTV accounted for 60 percent of campaign adoption, driven by the use of full-screen visual storytelling. In-Scroll Display formats comprised the remaining 40 percent, with brands using contextually triggered creatives across comparison and news platforms to boost discovery and recall.
Regional trends showed marked differences in engagement. Markets in North India, particularly Delhi, Jaipur, Lucknow, and Chandigarh—recorded 78 percent higher ad engagement than major cities in the South and West, including Bengaluru, Chennai, Mumbai, and Pune. The study notes that Northern audiences responded strongly to CTV-led brand narratives, while Southern and Western regions registered sharper CTR gains during festive offer peaks.
Commenting on the findings, Arjit Sachdeva, Co-founder of VDO.AI, said the data indicates a shift in consumer behaviour towards information-driven advertising formats. “Today’s car buyers are less influenced by flash; they seek information, trust, and relevance,” he said, adding that immersive CTV and interactive display formats recorded the highest engagement and completion rates during the festive period.
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