The Union Budget 2025 has given the middle class something to cheer about—tax reliefs that leave more money in their pockets. And where there’s more disposable income, there’s more spending. This shift is setting the stage for a consumption surge, with FMCG and automobile brands eager to tap into the rising purchasing power. From home upgrades to new cars, the aspirations of middle-class consumers are evolving, and brands are responding with strategic marketing plays. But what exactly does this mean for ad spends, consumer behaviour, and industry trends? We spoke to key players in the market to understand how they’re preparing for this shift.
The Consumer Spending Effect
Kishan Jain, Director at Goldmedal Electricals, sees a direct impact of rising disposable income on home improvement and premium electrical products. “Middle-class tax reliefs announced in this budget should boost disposable income, leading to increased spending on home improvement and premium electrical products. This positively impacts the demand for smart switches, LED lighting, fans, and home automation solutions. We also expect the trend of customers choosing energy-efficient and aesthetically advanced products to continue. For Goldmedal, this presents an opportunity to introduce innovative, value-for-money solutions that cater to this demand and evolving buying preferences.”
Himanshu Arora, CEO & Co-Founder, GoMechanic, agrees with this sentiment in the automotive sector. “The middle class is the engine of India’s consumption economy, and this budget just turbocharged it. The increased tax exemption threshold from INR 7 lakh to around INR 12.8 lakh is expected to put an additional INR 1 lakh in the pockets of millions of Indians. Historically, when disposable income rises, aspirational spending follows. The auto sector—especially entry-level and mid-segment cars—stand to gain the most from this. At GoMechanic, we anticipate a significant uptick in car ownership and usage, which means higher demand for after-sales services, accessories, and upgrades.”
A Marketing Budget Surge?
With this anticipated rise in consumer spending, brands are realigning their marketing budgets. Kishan Jain notes that Goldmedal Electricals plan to increase their ad spends, with a focus on digital marketing campaigns, influencer partnerships, and targeted campaigns to capture changing consumer preferences. “With higher disposable income driving demand, we expect that FMCG companies, including Goldmedal, will increase their ad spends. These will be through digital marketing campaigns, influencer partnerships, and targeted campaigns to capture changing consumer preferences. The percentage hike is different in each case, but brands may scale budgets by 5-10%,” says Jain.
Similarly, Himanshu Arora expects automobile brands to ramp up marketing investments. “Brands follow the money, and the money is now in the hands of the middle class. While no official numbers have been released, industry insiders estimate that auto manufacturers and dealerships could see a 10-15% increase in ad spends, focusing on regional markets where middle-class buyers dominate. Expect a shift in storytelling—brands will move from just showcasing vehicles to emotionally connecting with first-time buyers. The message? You’ve got more money now. You deserve an upgrade,” he states.
Pratik Kamdar, CEO & Co-Founder, Neuron Energy, also highlights the impact on the electric vehicle (EV) sector. “Increasing our advertising budget in response to rising disposable income is definitely on the cards. As a leading EV battery manufacturer, Neuron Energy plans to boost ad spends by around 10-15% to strengthen brand visibility and connect with a more receptive audience. The exact numbers will depend on market conditions, but our focus remains on reaching both B2B and B2C segments in the EV space. We’re also looking to expand into regional and tier-2/tier-3 cities to tap into new growth opportunities,” explains Kamdar.
Where Will the Ad Money Go?
The increase in ad spends comes with a shift in how brands distribute their marketing budgets. Digital and influencer marketing are set to dominate. Himanshu Arora breaks it down, stating, “TV will stay. Digital will dominate. Influencers will dictate. The automotive ad landscape is shifting.”
Pratik Kamdar also emphasises the growing role of digital marketing. “Digital marketing will likely see the biggest investment shift as it offers AI-driven targeting and better budget control. Influencer marketing is also on the rise, as people tend to trust recommendations from familiar voices. While print and TV are still valuable for mass outreach, their higher costs might make them less practical for budget-conscious brands, leading to more selective spending. Ultimately, a smart mix of these channels will be key to reaching a diverse audience effectively,” he adds.
Changing Consumer Behaviour
Rajeev Jain, Senior Vice President, Corporate Marketing at DS Group, sheds light on the evolving consumption patterns. He says, “Growth in the urban market has been a bit sluggish over the last few quarters. The 2025 Union Budget’s income tax reliefs for the middle class have sparked optimism among FMCG brands, expecting a rise in disposable incomes and a surge in consumer spending. Some of the key emerging consumer trends include higher discretionary spending, a revival in urban demand, and a growth in demand for premium products. Companies are also strengthening quick commerce and retail infrastructure to enhance accessibility and convenience, bridging the urban-rural divide.”
Meanwhile, Kishan Jain sees a shift in consumer demand toward smarter, more efficient products. Explaining this, he says, “The rising disposable income is leading to greater consumer spending on premium, branded, and energy-efficient products. This shift is driving demand for smart home solutions, sustainable choices, and digital-first shopping experiences. While traditional retail remains robust, the adoption of e-commerce is accelerating, supported by platforms like ONDC.”
Shivam Puri, CEO & MD, Cipla Health Limited, also sees a strong impact on wellness and FMCG. He notes that the tax relief will likely boost consumer confidence and discretionary spending, particularly in key sectors such as FMCG and wellness. With greater disposable income, the demand for everyday essentials, premium wellness products, and lifestyle-driven categories is expected to rise. As a result, brands are ramping up marketing investments to capture this evolving trend. He adds, “While digital platforms, including influencer collaborations, AI-driven personalisation, and immersive content, will see strong traction, TV, print, and out-of-home will remain vital for trust-building and mass reach. The key will be an integrated, omnichannel strategy that effectively connects with the relevant consumers.”
The Road Ahead
As the market adjusts to these budget-driven changes, brands across FMCG and automotive industries are preparing for a more dynamic and competitive advertising landscape. Whether it’s through influencer marketing, digital campaigns, or a push for sustainability, one thing is clear—companies that align their strategies with evolving middle-class aspirations will have the biggest wins in the post-budget era.
