Auto majors go slow on ad spends

Only significant increase in FY17 - double-digit growth - came from Maruti

After a substantial increase in advertising spends during the financial year 2016 (FY16), top automobile companies slowed down expenditure on expanding visibility last year. Some have also cut down spends, especially two-wheeler makers like Bajaj Auto and TVS Motor. The trend is expected to continue in FY18. The only significant increase in ad spends in FY17, a double-digit growth, came from the country’s leading carmaker Maruti Suzuki.  

The advertising spends reflect the sales performance and is also impacted by new product introductions. FY17 happened to be a challenging year for the two-wheeler makers, especially in the domestic market. After