Luxury car makers are now focusing on the small towns and cities for growth. The three biggest luxury car brands in India- Mercedes, Audi and BMW are going for the tier II and III cities. And the cities which are on their radar are Jaipur, Coimbatore, Goa, Indore, Bhubaneshwar, Surat and Lucknow.

This shift has happened since the people in these cities are becoming prosperous. And with the increasing disposable income, they are now the new markets for the car makers. More so since the metros are becoming highly clustered and overly saturated.

Besides, there is an increasing demand for luxury car brands in these cities, which everyone is trying to grab. Talking about this new trend, Dr Wilfried Aulbur, MD and CEO of Mercedes-Benz India said that the next big markets are the tier II and III cities. He said that the customers there are aspiring to go global in their taste and that is what the car makers want. Mercedes has already started to think seriously in this direction and is opening dealerships in full swing.

Peter Krnoschnabl, President, BMW India claims that his company can sell 40 to 50 cars every year in these cities.