Here is a moment to rejoice for luxury car buyers in smaller cities of India - like Jaipur, Coimbatore, Goa, Indore, Bhubaneshwar, Surat and Lucknow. Most of the luxury car makers including Mercedes, BMW and Audi are planning to open their new dealerships in these cities as a part of their expansion plans.

Mercedes recently showcased its Mercedes SLS AMG model at the Delhi Auto Expo and out of the 6 bookings for this Rs. 2.5 crore car, one of it came from Ahmedabad. “The next big trend will be tier-2 and 3 cities. The prosperity in these markets means there are enough customers ready and aspiring for luxury products and we need to tap that potential,” says Dr Wilfried Aulbur, MD and CEO of Mercedes-Benz India.

While Mercedes sold 11 cars in the first month of opening its dealership in Surat, the whole state of Gujarat recorded sales of 30 Mercedes models alone priced between Rs. 27 lakh to Rs. 5 crores. “We expect to sell between 40 and 50 cars every year in tier 2 and 3 cities,” Peter Krnoschnabl, president of BMW India that leads the luxury car segment in India. BMW already has its showrooms in Pune, Kochi, Ludhiana and Jaipur.