Car manufacturers budget on advertizing increases

Advertising, the only ray of hope for car manufacturers Over 50-55 cars are what we are going to see at the 2012 Auto Expo in January and this is just the beginning of the year.  Agreed that there are going to be some hot launches of the season like Maruti Ertiga, BMW Mini which is being awaited for ages now, Ford EcoSport to mark the beginning of the compact SUV trend in India and a hatchback from Mercedes-Benz! The new car launches are far outpacing the demand. The existing negative conditions in the market like petrol price hikes, the multiple lending rate revisions and slow economic growth are as if they have stoned the car sales in the country.

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But, these are not keeping the car manufacturers to go ahead with the launches. So, what else should the car manufacturers do in turn to boost the car sales. The only lingering hope remains to be the age old advertising industry. The car manufacturers are relying on the marketing more than ever before and we do have a couple of success stories right in front of us. Mahindra and Mahindra who resorted to some heavy marketing even before the launch, has definitely helped the manufacturer to garner the success what it thought was never possible with its recent flagship Mahindra XUV500.

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Then we have also seen the high tension environment when Hyundai EON was launched to beat the dominance of Maruti Alto in the A segment cars. Both had their own share of advertising even Maruti Suzuki India which refused to play into the hands of Hyundai India came up with Maruti Alto Xplore variant. Honda’s experiment on the Honda Brio hatchback is more than popular in the domestic car industry. So, it is more obvious than before that the car manufacturers are willing to shell out as much money as possible to see their new car models attain the glorifying success.

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