Digital and EV storytelling to drive 15% festive AdEx surge in auto sector

New Delhi: The automobile industry is loosening its purse strings more than usual as it prepares for a high-octane window of festivities. The festive AdEx for auto brands is expected to rise by 10%-15%, according to industry estimates. The sentiment is buoyed by a favourable demand cycle, a fresh slate of product launches, and the industry’s intent to push sales during the year’s most crucial period.

What stands out this year, however, is not only the quantum of the increase but also how the money is being deployed. Agency leaders note that the festive media mix is in flux, with auto brands now reevaluating older formulas and leaning towards a hybrid approach.

This recalibration also comes with heightened expectations of accountability. Brands are chasing ROI-led models, experimenting with storytelling formats, and testing innovative on-ground activations that can cut through the clutter.

How big is the ad pie?

According to Ratnakar Bharti, Vice President - Media, Mudramax, brands are leaning hard on this festive window to make for a slower H1. “While industry reports peg India’s ad market growth between 7% and 11% for 2025, the auto industry’s festive AdEx is expected to jump by 10%-15% over last year, highlighting that the money on the table is clearly bigger this year,” Bharti said. 

Offering a more cautious lens, Manish Sharma, President, Arena India (part of Havas Media Network India), stated that while the increased tariff and the latest ban on online money gaming platforms may have put a dent in the sentiment, the revised GST slabs and deeper penetration of media into tier-II, tier-III, and rural markets “will help the industry stay afloat.” 

With normalisation between the two, “the ad spends this festive season would see a 10% growth compared to last year,” Sharma said. 

Chiming in, Shradha Agarwal, co-founder and global CEO, Grapes Worldwide, said, “This season, we are witnessing a strong revival in ad spends, with Indian consumer companies preparing for a festive push that is set to outpace last year. Following a slow first half due to global unrest, brands are once again prioritising visibility and demand. With the festive season approaching, brands are looking forward to increasing their ad spend for driving enhanced engagement with the audience.”

Media mix in focus

The industry believes that the auto sector has shifted gears and is moving towards a more digitally dominated media plan. While print and TV still haven't lost their charm, there is a subtle shrinkage in the space taken by the legacy mediums in the ad pie. 

According to Arena’s Sharma, this festive season will be led by digital media with online videos, influencer marketing, and performance campaigns taking precedence over regular display campaigns. 

“Overall, the pie of digital spending will be close to 45-50%, with print following digital to boost sales and build trade confidence. TV will contribute to around 25% of the total Adex,” Sharma quantified. 

Bharti added, “For auto, the biggest festive push is on digital video and CTV, where big-screen impact meets lead generation through QR-coded ads linking directly to WhatsApp or dealer CRM for test-drive bookings.” 

Bharti toldBestMediaInfo.com that vernacular print will stay vital for price-led offers and exchange schemes in tiered markets, while DOOH will be central near dealerships and malls, capturing high-intent audiences with local festive deals.

“Creator-led social campaigns are also strong, with influencers explaining features, finance options, and EV benefits in local languages. Importantly, buyers are using Click-to-WhatsApp more than ever. In short, the sharper auto mix this year is CTV and digital video for reach plus action, social/WhatsApp for direct conversations, and regional print/DOOH for hyperlocal footfall,” Bharti further said. 

Zooming in on how brands are approaching this hybrid media mix, Harshada Chitale, account director, White Rivers Media, said, “We've seen a significant rise in digital investments, as brands tailor campaigns to resonate with regional cultures and languages. For instance, one of our brands, Hero Vida, leveraged creator collaborations, such as Ranbir Kapoor and Anil Kapoor’s collaboration for Father’s Day, and more recently, over 60 collaborations with influencers ranging from Saurav Joshi to Viraj Ghelani, for their EV scooter launch.” 

Regional revving hard

Regional markets are witnessing a significantly higher allocation of ad budgets this festive season. 

As Sharma noted, “The allocations have moved from 20-25% to 35-40% of total spending for regional markets. This shift reflects the need to connect with diverse, regional audiences during high-sales festive periods like Diwali, Navratri, and Onam, where localised messaging resonates more effectively.” 

The reason, Agarwal said, is that for auto brands, the real excitement often comes from families in tier-II and tier-III towns, where buying a car is a big milestone.

Adding to the conversation, Bharti from Mudramax said, “Regional and vernacular media aren’t just add-ons anymore; they’re where trust is highest and conversions happen. For auto, festive success depends on meeting consumers in their own language, on the platforms they use most.” 

The EV play

EVs are being touted as the apple of the eye for auto brands. Speaking on the subject matter, Roopali Sharma, President - North & East, Havas Media, said, “Auto is witnessing a revival across both 2W and 4W segments after seeing slower growth this year so far; with more EV launches and facelift campaigns, the market sentiments look positive.” 

“EVs have clearly changed festive planning for autos,” said Bharti. The funnel for EVs is substantially different, too. “Unlike the traditional petrol/diesel vehicles (ICE), which lean on broad emotion and offers, EV campaigns must focus on education and reassurance, i.e. range, charging, and cost of ownership. That’s why we’re using influencer explainers, YouTube reviews, and regional creators to build credibility,” Bharti toldBestMediaInfo.com.  

Agarwal chimed in, saying, “With EVs gaining momentum, there has been a shift in narrative with a focus on sustainability, innovation and trust. Impactful storytelling has taken centre stage, motivating audiences to adopt green and smarter choices proactively.” 

In short, Bharti said, festive planning is now two-fold: (a) mass-reach storytelling for the ICE segment and (b) hyperlocal, conversion-led campaigns for EVs.  

According to Arena’s Sharma, while TV remains important for broader reach, “ EV campaigns allocate nearly equal budgets to digital platforms (e.g., YouTube, Meta) for targeted, short-form content. Influencer collaborations and AI-powered personalisation are rising, with immersive experiences like mall activations and EV test zones in top markets to let consumers interact hands-on.” 

Experience counts

When asked about the biggest media innovation for auto advertisers this festive season, Agarwal was quick to point out the shift from campaigns feeling less like advertising and more like an experience. “People want to see, touch, and interact with a brand before making a big purchase decision. Therefore, there is a focus on creating campaigns that combine digital storytelling, influencer conversations, CTV, and on-ground engagements,” she said.

The game plan is simple. As Bharti explained, “For auto, the focus is clear: media that doesn’t just tell a festive story but pushes customers closer to the showroom.” 

Aligned with this, luxury players are also making tweaks. Mercedes is targeting its efforts towards “integrated campaigns.” Deciphering the blueprint, a Mercedes spokesperson said, “Specially curated experiential events and luxury experiences will be key highlights of the festive campaign, which will excite the customers. The campaign will be a combination of activations with a focus on both metro markets and emerging ones, as part of Mercedes-Benz India’s ‘go to customer’ market strategy.” 

Looking at the season as a whole, agencies expect auto AdEx growth to be sustained through the quarter, with digital gradually inching towards parity with television in terms of strategic importance. The role of regional markets and performance-linked campaigns is likely to deepen further, setting the stage for how auto advertisers plan in the coming years.