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Fuelled by new launches, auto festive spends could zoom to Rs.1,500 crore

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Fuelled by new launches, auto festive spends could zoom to Rs.1,500 crore

Last year automobile sector ad spends during the festive period (Onam- Diwali) saw an estimated Rs.450-500 crore. The sector’s ad spends in 2014 accounted for an estimated Rs.3,000 crore. This shows that that ad spends were more spread throughout the year than the festive period.

In 2015 the ad spends are estimated to grow by over 30% to Rs.4,000 crore. A major 60% of these ad spends i.e. Rs.2,400 crore is estimated to come during the second half of the year, say senior media planners. The festive period which begins from September and ends in December sees a major portion of ad spends during the second half of the year (H2). A large majority of the Rs.2,400 crore will be expected to come during the festive period. The automobile ad spends during the festive period could be expected at Rs 1,500 crore this year according to senior media planners. This would mean that the ad spends would be almost three times more as compared to last year during the same period.

“Ad spends of automobile in H1’15 has increased by 40% and growth expected to continue in H2’15 as well due to various launches by major auto players. Total ad spends of automobile category in 2015 is expected to touch Rs.4,000 crore with approximately 60% of spends in H2’15,” said a senior media planner.

Several launches from auto companies during the festive period are expected to fuelthe high growth. We had earlier reported launches expected during the next few months till the end of the year. Some of the launches from two-wheeler companies expected in the next few months include Honda Motorcycles and Scooter India is launching 9 new two-wheelers this year. This includes the launch of Honda CB300F, Honda CB500F, Honda CB 500X, Honda CBR 300R, Honda CBR500R, Honda CBR650F and two new scooters Honda Lead 125cc and Honda PCX 150. The introduction of these new models is due to the slowdown in their sales and is expected to boost the market and sales going forward. Bajaj Auto is expected to launch two new models during the year. Similarly, Hero MotoCorp is expected to launch two new scooters in the next few months. Many of these launches will be coinciding with the festive season as sales during this period see a large growth. TVS Motors is expected to launch the new Apache in September and the Victor will follow later. Yamaha plans to launch a new 150-cc and above motorcycle in the next few months.           

There are several four-wheelers which are slated to be launched during this period. Maruti Suzuki YRA (Baleno) Premium Hatchback is expected to be launched by the end of 2015, Maruti Suzuki Alto 800 Diesel in December 2015 and the new Ertiga during the festive season. Renault Kwid will be launched in October/November 2015. Mahindra will launch two cars during the festive season, one is Mahindra S101 Mini SUV and Mahindra TUV300 sub-compact SUV in September. Tata Motors is expected to launch Tata Kite hatchback during the festive period and Kite sedan by the end of 2015. The Chevrolet Trailblazer will also be launched during the festive season. The Ford Endeavour will hit the roads by November 2015, while the new generation Ford Figo will be launched by September/October 2015.   

While there are a number of launches among two wheelers too, the ad spends from four-wheeler category is expected to be much higher. The ad spends are also expected to rise as many top automobile companies will be spending on marketing on large sporting properties such as the Paytm Freedom Series between India and South Africa and ISL 2. Auto brands such as Maruti Suzuki and Hero MotoCorp are two of the leading companies advertising on both tournaments. In the India-South Africa series both Maruti Suzuki and Hero MotoCorp have taken up associate sponsorship rights which is estimated to be worth Rs.14-15 crore each. In ISL 2 Hero MotoCorp is the title sponsor of the league for a 3-year deal worth Rs.54 crore (Rs.18 crore per year), Maruti Suzuki has signed on associate sponsor. Many more automobile companies are expected to spend on such properties, apart from distributing their ad spends on other properties and mediums. 


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