Tata Motors media review for Passenger Vehicles business underway: EXCLUSIVE
Parts of Tata Motors media mandate are likely to be up for grabs. Industry sources say a media review is underway for the passenger vehicles business.
ADVERTISEMENT
One of the country's largest auto manufacturers, Tata Motors has put its media buying and planning business on pitch, as per sources. Industry insiders tell Storyboard18 that Tata Motors Passenger Vehicles is conducting a media review and has floated multiple briefs.
Different parts of Tata Motors PVs media mandate like above-the-line, digital (for electric and ICE business) and outdoor are with various agencies. These include Lodestar UM, OMD, Dentsu and Madison. It's unclear whether Tata Motors is looking to consolidate parts of the media mandate or to switch it up.
This makes two major auto accounts that are currently on pitch. As previously reported by Storyboard18, Hero MotoCorp Ltd, the world’s largest manufacturer of motorcycles and scooters, is looking for a media investments firm for media buying and planning. The incumbent is Publicis Media.
The revenue from Tata Passenger Vehicles was Rs 52,353 crore in FY24, compared to Rs 47,868 crore in FY23, an increase of 9.4%
On July, Tata Motors reported that its sales in the domestic and international market for Q1 FY 2024-25 stood at 229,891 vehicles, compared to 226,245 units during Q1 FY 2023-24.
Shailesh Chandra, managing director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said, “In Q1 FY25, after a boost in demand in the first half of April, due to festivities in some parts of country, the Passenger Vehicle industry saw a decline in retails (registrations) in the months of May and June, influenced by the general elections and heat waves across the country. Tata Motors wholesales of 138,682 cars and SUVs in Q1 FY25 remained flat compared to Q1 FY24, as we readjusted our wholesales in line with retails to keep channel inventory under control."
The company added that the Electric Vehicle industry was affected by the broader industry trend and the impact of significant preponement fleet sales in Q4FY24, due to expiry of FAME II subsidy in March 2024. Consequently, while the personal segment retails have grown slightly, there was a sharp decline witnessed in the fleet segment, which is expected to recover in the coming quarters.
Chandra added, "Going forward, we foresee recovery of demand, as enquiries have remained strong despite low retails in the past two months. This strong enquiry pipeline, in addition to onset of festive season from August, augurs well for the industry. Tata Motors is fully geared up to leverage this growth opportunity on the back of strong demand for its SUV portfolio, especially Punch and Nexon, as well as new launches in the coming months.”
Across categories including PVs and CVs, Tata Motors's publicity expenses represented at 2.1% and 1.7% of total revenues in FY24 and FY23 respectively, going to Rs 9,221 crore from Rs 6,035 crore.
