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Test-Drive Delivered

Can a digital-first approach in ad spends and sales rev up auto sales, after PVs saw their slowest growth in 3 years? IMPACT dives into the shift

BY Anushka Sengupta Shalinee Mishra
21st April 2025
Test-Drive Delivered

In the fast lane of the digital revolution, the automobile industry is accelerating its transformation, leaving the traditional marketing strategies in the rearview mirror. As the world adjusts to a post-pandemic reality, the auto industry is shifting gears, embracing digital channels to connect with customers, drive sales, and create immersive brand experiences.

With online sales websites, social media campaigns, and innovative partnerships redefining the car-buying journey, one thing is clear: the future of auto marketing is Digital, and it’s speeding towards us at a breakneck pace. The writing is on the wall - today’s car buying process begins in the digital realm, long before a customer steps into a showroom. And auto brands are taking notice, shifting gears to allocate a significant 35-37% of their marketing budgets to digital channels.

Maruti Suzuki, one of India’s leading automobile manufacturers, too, has amped up its digital marketing budgets. Sharing his insights on the same, Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India Limited, shares, “Digital marketing has become the cornerstone of our communication strategy at Maruti Suzuki. In the past 2-3 years, we have significantly recalibrated our marketing approach to align with evolving consumer behaviour. About 30-35% of our total media expenditure is directed towards digital, reflecting our commitment to engage with the digital-first generation.” However, he also highlighted that traditional channels remain crucial, particularly for call-to-action initiatives.

Virat Khullar, Head of Marketing, Hyundai Motor India Limited, highlights the need for a healthy marketing mix. Explaining Hyundai’s approach, he says, “HMIL’s marketing mix is a blend of both Digital and traditional mediums, which helps us reach the right audience and garner maximum engagement. We focus on developing a multi-channel strategy based on market dynamics, our business goals, and customer expectations. Our spends are also flexible, catering to the demands of the campaigns and target segments.” He also explains that digital has played a crucial role in the brand’s sales strategy.

As the auto industry continues to navigate the twists and turns of the digital landscape, one thing is clear - the future of marketing is online. And auto brands that fail to adapt risk being left in the dust.



Priyanka Bisen Shah, Head of Digital Marketing, Bajaj Auto, says, “The shift towards Digital has been a long time coming. I remember a time when securing a crore for digital marketing required ten rounds of meetings. Today, measurable results are convincing boardrooms to invest more. With digital advertising now surpassing 54% across industries, the auto sector is following suit. Since I joined, I’ve seen a clear positive uptake in digital spends.” She further states that even video marketing and influencer marketing have become crucial strategies for the automobile industry.

“Video marketing, in particular, has become a key driver. People don’t want to read; they want to see and believe. Video conveys emotions far better than static ads. Influencer marketing has also become central to our strategy. A product film alone, no matter how much money is spent, won’t have the same impact as real people speaking in a language their audience relates to,” she adds.

In 2025, Bajaj Auto is also embracing AI-driven personalisation. Priyanka shares that for their new Pulsar NS400Z, the brand has created an AI-powered campaign that lets audiences become the hero of their own story. This innovative approach signals a bold new era for digital auto marketing.

Rohit Sharma, CMO, Hero Cycles Ltd, underscores that their company’s weapon of choice has always been performance marketing. “With the advent of screen time, most people spend more time on their handheld devices as opposed to any other screen. Back in the conventional markets also, we’ve seen a rising trend where screens are becoming predominantly more effective means of platforms to communicate. We are a very conventional company, but our latest campaign was only Digital. However, interestingly, we got very good results with this. We need to dive more into Digital,” he further explains.

While Volvo has traditionally relied on face-to-face and large-scale physical presence, they are now increasingly investing in online engagement to stay current and reach broader audiences more efficiently. Rohan Mascarenhas, Brand & Marketing Communications, Volvo-Eicher JV (VECV), elaborates that, “Print is very low for us. It’s used mainly for promotions or festive communication. We focus on on-ground activations, OOH, and are moving towards Digital. However, for connected TV (CTV), right now, we haven’t found the right content. If it starts making sense, we’re open to exploring it.”



Not just traditional brands, even EV companies are joining the race, allocating a significant share in digital channels and performance marketing. Komaki Electric, a leading EV manufacturer, is heavily investing in high-conversion platforms, leveraging social media, search marketing, and influencer-driven growth. Its search-based Google Ads strategy is used to ensure that it drives high traffic. Gunjan Malhotra, Co-Founder, Komaki Electric, says, “Understanding the benefits, we at Komaki being a leader in the electric two- and three-wheeler segment, allocate digital ad spends to drive maximum impact. Keeping in mind the 37% of ad spends dedicated to digital media, we are focused on optimising media strategy where we employ performance-driven digital campaigns to maximise the output.”



She further reveals that the company plans to expand its digital investment in 2025, focusing on redefining the digital efforts aimed at maximising cost efficiency and augmenting engagement.

“Working towards the same, we are keen on further scaling our digital spending with an emphasis on high ROI platforms rather than reallocating funds from traditional media such as TV, print, etc. We will be further supporting it with AI-driven targeting and automation to ensure ad efficiency. Gauging the immense potential of digital marketing, we prioritise a digital-only approach for fetching maximum ROI. We resort to Google Search and Meta, i.e., Facebook and Instagram, to secure high-intent leads. At the same time, we also harness the benefits of YouTube Shorts and Instagram Reels to create awareness around the brand,” she adds.

Is Quick Commerce the Future?
The collaboration between Zepto and Skoda is a testament to the evolving landscape of auto marketing. By enabling customers to book a test drive to their doorstep in just 10 minutes, Skoda is redefining the car-buying experience. This partnership is a prime example of how quick commerce is changing the game. “As an industry-first initiative, we partnered with Zepto to offer test drive bookings in just 10 minutes in select parts of Mumbai. The goal was to understand the demand for instant test drive scheduling and assess consumer response. The initial results have been encouraging, and we are in the process of analysing insights to determine how such innovations can shape the future of automotive retail,” shares Petr Janeba, Brand Director, Škoda Auto India. He also explains that while quick commerce may not entirely replace traditional dealership models, it is reshaping how consumers interact with brands, explore products, and take the first step in their buying journey.



However, quick commerce is not the end goal - it’s just a step in the journey. The real challenge lies in creating a seamless, omnichannel experience that integrates online and offline channels. While Skoda’s partnership with Zepto for a 10-minute test drive is an innovative move, Rohan believes e-commerce won’t drive direct auto sales, especially for commercial vehicles. “It cannot be direct sales, but test drives, yes. It can be used for a demo, a virtual experience, or even brand merchandise. However, commercial vehicle sales require extensive discussions and testing before a purchase,” he opines.

Digital Showrooms Surge
At the forefront of this auto-marketing revolution is the rise of online sales websites, which have not only boosted sales for the automobile industry but also provided a seamless, omnichannel experience for customers.

“HMIL was one of the first automakers in India to launch an online sales website - Click to Buy, in March 2020. This portal offers end-to-end car-buying journey, including booking, test drives, and online financing options. We also provide an omnichannel retail experience, allowing customers to seamlessly switch their car buying journey from dealership to website, or vice-versa, combining digital convenience with dealership support,” Virat highlights.



Explaining Maruti Suzuki’s efforts, Partho further adds, “Our Maruti Suzuki Smart Finance portal represents another milestone in our digital journey. Launched five years ago, this platform has now served over 2 million customers, with 50% of our vehicle financing processed digitally. Also, our AI-powered customer service systems now handle 97% of enquiries automatically, delivering instant, personalised responses while continuously improving through machine learning.”

Gone are the days of tedious dealership visits and pushy sales pitches. Today, customers can browse, compare, and even purchase vehicles from the comfort of their own homes. And auto brands are reaping the benefits, with online sales contributing significantly to their bottom line. “Marketing strategies need to evolve alongside consumer behaviour, and today, 90% of car buyers begin their journey online. This shift has made digital an indispensable part of our marketing mix, ensuring that we are present during the crucial discovery and research phases of the consumer journey,” states Petr. He also explains that Škoda has had successful digital-only sales.



“Performance marketing plays a critical role in converting in-market audiences into high-intent leads. We have seen success with initiatives like ‘Best of Škoda’, where we put up specific cars for sales online for 24 hours only with extra benefits. These initiatives saw huge uptakes and complement our dealership network, making the buying process more accessible and streamlined,” Petr states. But the shift to digital is not just about sales; it’s also about storytelling. Auto brands are leveraging digital channels to craft compelling narratives that resonate with their target audience.



“Buying a car will always be an emotional decision. So top funnel brand building will always remain a key component of automobile marketing. This builds intent. Additionally, investing in top-funnel brand awareness holds significant value as it broadens the entire funnel,” outlines Oindrila Roy, Managing Director, Publicis India. She further adds that influencers play a key role in the automobile industry.

“Unlike in the past, when consumers typically waited to visit a showroom for a test drive, which largely influenced their decision, now, the intention phase develops much earlier in the buying journey due to the rise of the discerning consumers who want information from authentic voices who are in the know of the category. This insight has led to brands tapping into modern marketing techniques such as influencers and brand communities,” she points out.



As the auto industry continues to navigate the complexities of digital transformation, collaborations like Zepto and Skoda will become increasingly important. By embracing innovative partnerships and leveraging digital channels to facilitate customer engagement, auto brands can stay ahead of the curve and create a truly immersive brand experience. The future of auto marketing is undoubtedly digital - and it’s arriving faster than you think.

  • TAGS :
  • #Bajaj Auto
  • #Rohit Sharma
  • #Maruti Suzuki India
  • #Partho Banerjee
  • #Virat Khullar
  • #Hyundai Motor India Limited
  • #Priyanka Bisen Shah
  • #Hero Cycles
  • #Rohan Mascarenhas
  • #Volvo-Eicher JV
  • #Gunjan Malhotra
  • #Komaki Electric
  • #Petr Janeba
  • #Škoda Auto India
  • #Zepto X Skoda

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