India’s luxury automotive market is undergoing a visible geographic shift, with Tier-II and emerging cities increasingly driving incremental growth, marking a new phase in the country’s premium mobility story. What was once a metro-centric segment is now expanding into cities such as Agra, Lucknow, Jaipur, Indore and Chandigarh, backed by rising disposable incomes, stronger local entrepreneurship and growing aspiration for premium lifestyles.
Industry estimates suggest that Tier-II and Tier-III cities now account for nearly 20–25% of India’s luxury car demand, up from low double digits a decade ago. The segment is growing at an annual rate of 15–20% in non-metro markets, outpacing metros in percentage terms, even as overall luxury car volumes in India continue their steady upward trajectory. Luxury SUVs in particular have emerged as the fastest-growing category outside major urban centres.
Uttar Pradesh, India’s most populous state, is increasingly reflecting this trend. Cities like Agra—traditionally known for tourism and trade—are witnessing a rise in first-time luxury buyers, professionals and business families opting for premium German, British and emerging electric luxury brands. Dealers report higher enquiries not only for entry-level luxury models, but also for vehicles priced well above the ₹60–80 lakh range, indicating growing confidence and purchasing power.
At the centre of this transition is Shivam Chawla, Founder of The Car Mall, a multibrand luxury automotive enterprise that has been operating since 2003. With over 23 years of hands-on experience in the automotive space, Shivam Chawla represents a new class of Tier-II market leaders—those who have grown from grassroots dealership operations to building integrated automotive brands.
Unlike conventional luxury dealerships focused on a single OEM, The Car Mall has positioned itself as an aggregator of new luxury car brands, offering customers access to multiple premium manufacturers under one roof. Its model spans new luxury car sales, curated pre-owned luxury vehicles, financing, insurance, buy-back solutions, and a dedicated multibrand luxury workshop, supported by OEM spare-parts tie-ups—a critical factor for customer confidence in non-metro markets.
“The Tier-II luxury customer today is extremely well-informed and decisive. They are not compromising on brand, specification or service—they simply want convenience, trust and transparency locally”, says Shivam
“In Tier-II cities, purchasing behaviour remains largely driven by physical interactions, as customers place high importance on touch-and-feel experiences and driving trials” adds Shivam. This led to the birth of an experiential platform, called Luxe Motor Show, conceptualised and launched by The Car Mall in 2025, one of North India’s first large-format, invite-only luxury automotive showcases in a Tier-II city. While the First edition saw participation by 9 major global luxury brands, the 2026 edition scaled up significantly with 12 brands reinforcing Agra’s position on India’s luxury automotive map and demonstrating the commercial viability of premium auto exhibitions beyond metros.
Shivam Chawla’s role extends beyond retail. As a national automotive influencer known as TheAutoXpert, with over 40,000 followers, he is part of a growing ecosystem of domain experts shaping consumer decisions in smaller cities. His audience—largely from Tier-II and Tier-III India—actively seeks guidance before making high-value car purchases, reflecting a shift toward informed, research-driven buying behaviour.
Analysts believe that entrepreneurs and brands rooted in Tier-II markets will play an anchoring role in the next phase of India’s automotive growth. By combining local market knowledge with organised retail practices, integrated servicing infrastructure and consumer education, players like The Car Mall are helping bridge the gap between aspiration and access.
As luxury automotive brands look to sustain growth in a competitive environment, Tier-II cities are no longer peripheral markets—they are fast becoming strategic growth centres, reshaping how and where India’s luxury car story is written.