How the automobile industry is driving festive cheer in 2024

The festive season has always been a time of emotional connection for consumers and brands alike, in 2024, the automobile industry is no exception. It’s a period where big-budget purchases are considered to be auspicious. Keeping up with the spirit, automobile brands craft campaigns that attempt to resonate deeply with consumers, embracing the spirit of family traditions, hope, and new beginnings. 

While consumers are willing to empty their pockets to purchase vehicles, there’s a shifting trend in their behaviour. As per reports, the average consumer considers key factors before purchasing a vehicle, prioritising experience, product quality, vehicle features, and safety.

Festive campaigns in the automobile category attempt to reassure consumers about the same. Hyundai’s Diwali ad for 2023, ‘Safety for all’, featured highlights of all the safety features its cars have. What made the ad interesting was its subtle acts of love and care people show for one another, and the urge to keep your loved ones safe as they enjoy festivities. 

Speaking to consumers with messages that resonate with them can work in a brand’s favour, in turn helping them build lasting connections. Amit Nandwani, NCD, Cheil X Delhi shares that client briefs for the automobile category usually talk about spreading festive cheer among consumers by creating campaigns that embrace the traditions and make the brand a part of their joyful celebrations. 

Besides spreading cheer, Nandwani notes, “A lot of brands create social campaigns during festive time as at this time people love to help the less fortunate ones. Encouraging them to support social causes and challenge societal taboos in a way that resonates with the brand philosophy, is another way brands can ride on the festive wave.”   

This can be seen in MG Motor’s Diwali campaign last year. The ad, based on a true story, talked about welcoming #GharKiLaxmi, in this case, Laxmi being their daughter, who finds the courage to leave her abusive partner after filing for a divorce. Traditionally, there are judgements associated with women filing for divorce and returning home. The ad showed her parents welcoming her back home, celebrating her found courage and a new beginning. 

These campaigns aren’t just product pitches, they attempt to craft emotional stories, building around the idea of family, safety, tradition, and celebration.

As festive marketing evolves, automobile brands are experimenting with deeper storytelling. However, David Vaz, Associate Creative Director at DDB Mudra Group, remarks, “While attempting to establish their role during the festive season, automobile ads don't always plumb beyond the festive cliches and end up lost in the sea of happy/sappy fluff.”

Having worked on brand campaigns for Volkswagen India, Vaz notes that the agency has found success in co-creating festive briefs with clients, “affording brands the opportunity to tell more unexpected stories and tap into a wider range of emotions.”

Consumer sentiment in the automobile industry 

If a brand’s storytelling and consumer messaging resonate, it will translate into sales. In 2023, 1.03 million cars and SUVs were estimated to have been retailed in India in the 90-day period of festivities, starting with Onam in Kerala and concluding with Bhai Dooj across the majority of the states. 

According to Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India Limited, "The festive season is an important period for the entire automotive industry and usually accounts for about a quarter of the annual sales. We are anticipating a moderate growth this festive season because of a high base last year."

Maruti Suzuki Arena’s festive ad this year features a vibrant display of festivity in different parts of the country from celebrations of Durga Pujo to playing garba during Navratri to enjoying the joy of bursting crackers during Diwali. One common element in the ad is the vehicles that join the celebrations with your family and friends. 

Maruti Suzuki, with the launch of its Epic New Swift, Dream Series Edition models, and Urbano edition of Brezza, is banking on driving consumer excitement across its product range. 

Banerjee notes, “The launch of the Urbano edition of Brezza has also significantly contributed to the SUV's sales, making it the best-selling car in August 2024 with over 19,000 units sold. To capture customer interest and engage with them effectively, we will employ targeted marketing strategies across carefully selected platforms, including print, digital, and OOH."

Its efforts aren’t in vain. The brand reported a 10% spike in bookings in Kerala ahead of Onam. Deliveries in Maharashtra and Karnataka rose on the first day of Ganesh Chaturthi.

The used-car market is also expected to see a boost this season. Gajendra Jangid, Co-Founder & CMO of CARS24 says, “Economically, the market is ripe with consumers viewing cars as both a necessity and a celebration of their success. Rising disposable incomes, coupled with attractive EMI options and festive discounts, are driving strong demand, particularly for pre-loved cars, which offer affordability without compromising on quality.”

Urban markets, in particular, with metro cities like Mumbai and Delhi are expected to show an increased spending power and lead this surge.

Shift towards digital

With digital ad impressions surging 5x from 2019 to 2023, and TV ad volumes declining by 18%, the shift towards digital advertising is evident. Gajendra Jangid emphasises that this festive season, CARS24 is adopting a customer-first approach. 

“The main themes we will focus on during this season are celebration, accessibility, and trust. Our marketing strategy has always emphasised word of mouth because we believe that a strong customer experience naturally leads to positive recommendations.”

Similarly, Yogesh Mathur, Director - Sales & Marketing at Honda Motorcycle & Scooter India (HMSI), mentions how digital marketing now plays a crucial role in reaching both urban and rural consumers. The brand’s 'Super Savetember' scheme is aimed at enhancing customer experience, offering attractive finance schemes like a free-of-cost 1st-year service maintenance package to Shine 100 and Activa buyers and cashback.

Mathur mentions, “HMSI’s sales are supported by a well-planned marketing strategy that reaches both urban and rural audiences through an equal mix of digital and traditional media, including print, outdoor advertisement, television, and online mediums.”

He anticipates a strong festive season ahead with the positive market sentiment fuelling this demand. According to data, the sales of three-wheelers and two-wheelers rose 7.7% and 9.3% to 69,962 units and 1,711,662 units in August 2024 and HMSI has observed an uptick as well. 

“Our best-selling brands, Activa and Shine, continue to perform well, and we are witnessing strong demand for our entire product portfolio across both urban and rural areas," adds Mathur.

Even electric vehicle brands like Odysse Electric are embracing the digital-first approach. Nemin Vora, CEO of Odysse Electric, highlights the importance of social media in its marketing mix. “Around 90% of our marketing is done via social media, with 10% through other means.” 

He comments that social media helps the startup create immediate awareness among consumers, which eventually leads to sales. Social media is also more targeted and cost-effective compared to traditional advertising.

As consumers become more discerning, brands are focusing on authenticity and value-for-money propositions. According to Vora, "The customer is more price-sensitive now, seeking products that are affordable, with a medium ticket size, not too expensive. We recently launched a product that caters to this segment, with the tagline ‘Pocket mein hit.’ The tagline itself conveys that it’s an economical product that fits all budgets."

To reach consumers beyond social media, the start-up is also present on e-commerce platforms like Flipkart, where it generates sales alongside its dealership network. 

“Being visible on platforms like Flipkart through banner ads helps us reach more consumers across India, especially as e-commerce demand continues to grow,” says Vora. 

The automobile industry’s festive season strategies are leaning on digital platforms to deliver targeted, emotional messages that resonate with today’s consumer, while still retaining a mix of traditional advertising to reach broader audiences.

From new car launches and limited-edition models to festive finance schemes and social media-driven campaigns, the automobile industry is in high gear, ready to capitalise on the holiday spirit. However, the storytelling this season needs to be engaging as traditional values of family, safety, and prosperity continue to be the mainstays of festive campaigns.