Two wheeler makers rev up ad spending as competition intensifies

MUMBAI: The race for customers is no longer won only on the road, it is increasingly being fought on screens, billboards and social feeds. India’s leading two-wheeler manufacturers sharply accelerated their advertising and marketing investments in FY26, ramping up brand-building, premiumisation and digital campaigns as competition intensified and consumer demand gathered pace.

Annual reports from TVS Motor Company, Hero MotoCorp and Bajaj Auto show all three manufacturers stepped up spending on advertising, promotions and customer engagement, even as they reported stronger revenues and profits during the financial year.

Among the three, Hero MotoCorp emerged as the biggest spender, allocating Rs 1,511 crore towards advertising and promotion in FY26. The company said it shifted its marketing strategy from chasing visibility to creating stronger brand affinity.

“We rewired our marketing approach to create pull, not noise. Our focus was on strengthening customer trust in the Hero brand,” the company said in its annual report, adding that its campaigns were designed to forge deeper emotional connections with riders while reinforcing long-term brand equity.

Hero also doubled down on its premium ambitions through a four-pronged strategy focused on Culture, Collaboration, Community engagement and Content creation. It expanded digital campaigns and increased engagement with motorcycle riding communities, particularly in the above-200cc premium segment.

Artificial intelligence also played a bigger role in the company’s marketing playbook. According to the annual report, AI-driven lead propensity models improved lead conversion rates from 10 per cent to 15 per cent, while machine learning-powered marketing campaigns lifted repeat purchase rates from 3 per cent to 12 per cent.

The strategy coincided with stronger business performance. Hero MotoCorp’s market share improved to 6 per cent from 5.5 per cent in FY25, while total income rose to Rs 48,469.37 crore from Rs 41,967.50 crore. Profit after tax climbed to Rs 5,775.70 crore, compared with Rs 4,375.81 crore a year earlier.

TVS Motor Company also significantly increased its marketing investments. Advertisement and publicity expenses rose to Rs 946.91 crore in FY26 from Rs 819.45 crore in FY25, while other marketing expenses surged to Rs 1,101.92 crore from Rs 794.12 crore. Together, the company’s advertising and marketing expenditure crossed Rs 2,048 crore during the year.

The higher spending was accompanied by strong financial growth. Revenue from operations increased to Rs 56,069.52 crore from Rs 44,089.01 crore, while profit for the year rose to Rs 3,186.43 crore from Rs 2,379.81 crore.

Bajaj Auto also expanded its brand-building efforts, with advertisement expenses increasing to Rs 646.97 crore in FY26 from Rs 508.40 crore in the previous year, reflecting the wider industry’s push to strengthen visibility and customer engagement.

The spending spree underscores a shift in India’s two-wheeler market, where success increasingly depends on building aspirational brands alongside selling vehicles. As manufacturers battle for share in premium motorcycles and digital-first consumers become harder to win over, advertising is evolving from a support function into a strategic growth engine.