Citroen will sponsor the Leading Rider and Leading Trainer awards, which will be presented on Friday, the final day of this week's festival -- previously sponsored by The Racing Post.
The manufacturer is intending to highlight its new mini-MPV launch, the C3 Picasso, which will be showcased and used to run a VIP shuttle service at the racecourse.
Cheltenham is set to generate £3.5m-£4m from commercial partnerships excluding hospitality this year, according to Peter McNeile, its director of sponsorship.
McNeile said: "Sponsorship is one of those discretionary spends that tends to come under intense scrutiny when you get to a recession.
"We're fortunate enough here to be at the top of the pyramid of excellence and I think at a time like this people ... tend to go for top quality events.
"They reduce the number of events they might be looking to sponsor, but they tend to go for top quality events."
The festival persuaded all sponsors mid-contract to continue their deals, including Ryanair, Seasons Holidays and JCB.
McNeile said: "We will be about on the same [income] this year as last year, and I think to have achieve the same will be a triumph in the prevailing circumstances.
"To get a vehicle manufacturer to spend some money is quite refreshing isn't it?"
Marc Raven, communications director of Citroen UK, said: "We look forward to showcasing our newly launched C3 Picasso to the large crowds at the course and the huge numbers of racing fans watching on TV."
The festival, which is known for the Gold Cup steeplechase and Thursday's Ladies' Day, is hoping to attract between 200,000 and 220,000 visitors this year compared with 230,000 last year.
McNeile is also hoping to attract a big international audience on the internet for the festival's dedicated radio station, which drew in a peak of 600,000 unique users last year.
After this year's event the sponsorship rights to the Gold Cup and the World Hurdle, held by Totesport and Ladbrokes respectively, come up for renewal.
