Tata Motors PV's media pitch concludes; auto major retains existing agencies

Tata Motors has finalized the pitch for its Passenger Vehicles media planning and buying account, valued at approximately Rs 450 crore, according to industry sources. The automobile giant initiated the pitch earlier this year, as previously reported by Storyboard18 exclusively. Sources indicate that Tata Motors has decided to retain its current roster of agencies, opting not to onboard any new partners.

Tata Motors’ media mandate spans various categories, including above-the-line, digital (covering both electric and internal combustion engine vehicles), and outdoor advertising. The company’s media needs are currently managed by agencies such as Lodestar UM, OMD, Dentsu, and Madison.

A source close to the development confirmed, “The pitch process has concluded. Tata Motors will continue its relationships with its existing agencies and will not bring on any new ones.”

None of the media agencies involved in the pitch have commented officially on the process.

In broader industry trends, the automotive sector’s TV advertising spend has seen a notable decline, with a 14% drop in advertising volumes during the first half of 2024 (January to June) compared to the same period last year, according to the latest TAM AdEx report. Conversely, the sector has experienced a surge in other media platforms, with a 25% increase in print advertising, a 14% rise in radio, and a remarkable 55% growth in digital media during the first half of 2024.

Meanwhile, media accounts worth over Rs 2,500 crore, including those for companies such as Dabur India, Tata Consumer Products, Hero MotoCorp, and Kotak Mahindra, are currently in play, with most of these deals expected to be finalized by year’s end.

In its latest sales report, Tata Motors revealed a slight decline in total sales for October 2024, totaling 82,682 units, compared to 82,954 units during the same month last year. The company noted a small uptick in domestic sales, which rose to 80,839 units from 80,825 units in October 2023.

Passenger vehicle sales, which include both electric and conventional models, saw a modest dip, with 48,423 units sold in October 2024, compared to 48,637 units in the previous year. Within the passenger vehicle category, domestic sales reached 48,131 units, down slightly from 48,337 units year-on-year. In the commercial vehicle segment, Tata Motors sold 34,259 units, a slight decrease from the 34,317 units recorded in October 2023.