Automobile sales slowed down in Calcutta during Dhanteras while the districts fared slightly better. Conversations with dealers and sales personnel suggested a rural-urban divide in festive sales this year.

In Calcutta, the mood in dealerships was muted. In places like Asansol and Burdwan, the sales were “high”.

With most dealers having multiple dealerships in the city and suburbs, the divide in sales was apparent in the accounts.

Rohit Chowdhury of the Federation of Automobile Dealers’ Association (FADA), West Bengal chapter, said: “Deliveries of two-wheelers and four-wheelers across Bengal have been good. Sentiments are high in the suburbs like Asansol and Burdwan. In Calcutta, there is not much excitement. Though deliveries have happened, they are the same as last year’s.”

While the auto industry is facing a slowdown with sales muted through August and September, manufacturers were betting on the festive month to bring down inventory levels in the sales channels that had touched an all-time high of 70 days.

With all the festivals bunched up in October this year, from Navratri to Diwali, everyone expected a bumper sale.

“There will be a correction of inventory levels and I think it will come down to 10-15 days after October,” said Chowdhury.

Maruti chairman R.C. Bhargava, who addressed a press conference on Tuesday, cautioned that the industry was facing a slowdown.

Post-Covid, the auto industry saw all-time high sales because of pent-up demand. But that demand has petered off with growth trickling down to three or four per cent this fiscal, he said.

He also pointed out that affordability is affecting sales. Car prices have gone up by almost 30 per cent, post-Covid.

“Compared to that, incomes have not risen. So first-time buyers are fewer,” said Bhargava.

The effect of the slowdown is palpable in Dhanteras which has been low-key in the city with sales and deliveries barely touching last year’s Dhanteras figures.

Some dealerships reported lower sales than last year, some said they barely touched last year’s figures.

While total deliveries across brands can only be computed at the end of the month, Chowdhury, of FADA, said: “While on an average, 10,000 passenger vehicles are sold in Bengal per month, the figure will touch 15,000 units in October 2024.”

Asked about Calcutta’s contribution to Bengal’s figures, Chowdhury said: “Calcutta contributes 60 per cent of the sales.”

Again, Dhanteras is celebrated in Calcutta more than the Tier 2 or 3 cities, said Chowdhury.

“The Dhanteras single-day delivery will probably be more in Calcutta than the suburbs, but for the festive season as a whole, the rural areas have seen better sales than Calcutta.”

Said Vinod Agarwal of Lexus Motors: “Sales in Calcutta are nothing exciting. The single-day Dhanteras deliveries don’t happen anymore. Deliveries are happening across the month. And Dhanteras buying is more prevalent among fleet operators.”

Manufacturers like Mahindra and luxury players like Mercedes have fared better than others because they launched new cars just before the festive season.

The lone Mercedes dealership in the city, Interkrafts, has delivered 20-plus cars for Dhanteras this year. In the east, the figure was 30-plus for Mercedes. The German manufacturer launched the new generation E-Class Long Wheel Base that has quite a few takers this Dhanteras.

Santosh Iyer, MD and CEO of Mercedes Benz India, said: “We have witnessed record sales and highest-ever deliveries during Dhanteras in Calcutta. Deliveries were up by almost 50 per cent this year. The overall bookings in Calcutta during the festive period grew by 20 per cent, driven primarily by the new E-Class and the C-Class sedans and also the GLC, GLE and GLS SUVs.”