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New launches, ad campaigns propel Indian auto sales growth in May

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New launches, ad campaigns propel Indian auto sales growth in May

Major players in the Indian auto industry have, for the second consecutive month this fiscal, remained upbeat in terms of sales volume growth. While good economic indicators along with new launches have revved up the sector, auto brands have gone all out with TVCs, print ads and social media campaigns for demand generation.

A flurry of new car launches like Tata Tiago, Maruti Suzuki Vitara Brezza, Toyota Crysta, Hyundai i10, 120, Elite i20 and Honda BR-V and their subsequent ad and marketing campaigns have clearly spurred buyer interest. Data showed that the growth in May, like April, was supported by utility vehicles, especially compact ones such as Creta, Brezza and TUV300.

Tata Motors’ premium hatchback Tiago signed up Argentinian footballer Lionel Messi as its global brand ambassador to roll out its #madeofgreat campaign across India. With the #fantastico campaign, it created India’s first virtual drive experience for the Tiago car. With various campaigns like the VR headset with the Times of India newspaper that gave an insight into the Tiago, the TVCs featuring Messi helped TATA motors sell Tiago. Such was the demand for the Tiago that it witnessed 15,000 bookings since its launch in April. Along with this, Tata dealerships across the nation have received 1,00,000 inquiries for the car. In May, Tata Motors’ hatchback sales grew by 7% at 5,643 units in May 2016 on the back of strong demand for the Tiago.

Watch the TVC here

Hyundai launched the ‘JAI HO’ campaign to celebrate the three successive Indian Car of the Year award winners Grand i10, Elite i20, and Creta. Y K Koo MD & CEO, HMIL, said, “This campaign is dedicated to all the Indian customers, building a sense of pride and celebrating the success of three Super Performer brands. We are humbled by the overwhelming response and appreciation received from the customers and media.” Hyundai registered the domestic sales of 41,351 units in May 2016 with a growth of 10.4%.

Watch the TVC here

Honda started its digital teaser campaign #WhereNextWithBRV in April. The campaign featured on Honda Cars India’s Facebook page and Twitter and Instagram accounts. The BR-V travelled through various terrains and the journey was posted on social media. The customers who bought the BR-V used the hashtag to share their experiences. While Honda Cars India registered a dip in total monthly sales of 9954 units in May as compared to 13431 units sold in the same month last year,  it ended up selling 2344 units of BR-V in the month of May only third to Jazz and City.

Toyota Kirloskar launched its SUV Toyota Crysta in May and released print ads and TVC’s for the same. Crysta was received well by the audiences, within a month the Innova Crysta has received close to 20,000 booking orders with a waiting period of 2-4 months across India. Toyota Kirloskar Motor sold a total of 12,200 units in the domestic market in the month of May thereby registering a growth of 6% when compared to the same period last year.

Watch the TVC here

Renault registered a growth of 132 per cent with monthly domestic sales of 8,343 units in May 2016 over 3,601 units sold in the corresponding month last year. Kwid hatchback has been helping Renault’s growth in India with a waiting period of around 6-7 months and has booking backlog of over 1 lakh cars from customers. Renault has been pushing its Kwid on social media to create better awareness and interactions.

Meanwhile, Mahindra’s passenger vehicles segment (which includes UVs, Cars and Vans) sold 19,635 units in May 2016 as against 18,135 units during May 2015, a growth of 8%. The company's domestic sales stood at 36,613 units during May 2016, as against 33,369 units during May 2015, a growth of 10%.

Ford India’s domestic sales for May grew to 5,780 vehicles as against 4,726 units, while exports grew to 11,499 vehicles compared to 6,988 units as in the same month last year.

Maruti Suzuki India, leader in passenger vehicles, sold 113162 units domestically in May 2016 as compared to 102359 units in the same period last year. Maruti’s new compact SUV Vitara Brezza gave the much-needed thrust. The company's utility vehicle segment showed a growth of 144.2 percent in May to register sales of 13596 units as compared to 5567 units in May 2015. Passenger car sales, which includes sales of Alto, WagonR, Swift, Ritz, Celerio, Baleno, Dzire, Dzire Tour and Ciaz jumped 2.6 percent to 87,402 units as against 85,190 units a year ago.

As the second half of the year unfolds, it is left to see how the auto industry shapes up and if such campaigns and new TVCs will continue to flood the marketing and advertising space. 

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Prior to joining Madison PR in 2012 Chaudhary was Group President Corporate Communications at Reliance Industries Limited.