India’s smaller cities are emerging as important centres of car-buying research ahead of the festive season, accounting for nearly 58% of activity on CarDekho Group’s automotive marketplace during August and September 2026. The findings show that Tier-2 and smaller cities contributed a larger share of online car research than Tier-1 cities, which accounted for the remaining 42%.
The data also highlights growing interest in electric cars beyond India’s largest metropolitan markets. Jaipur recorded an electric vehicle (EV) research share of 14.9%, higher than Bengaluru’s 11.1%, while Hyderabad led the leading cities at 15.7%. The findings, reported by Storyboard18 and other media outlets, are based on CarDekho Group’s proprietary platform data. They reflect what consumers are exploring online before the festive buying season, rather than confirmed vehicle purchases or actual sales.
Key Takeaways
- 58% of car research comes from smaller cities: Tier-2 and smaller markets accounted for nearly three-fifths of pre-festive research activity.
- Jaipur outpaces Bengaluru in EV interest: EVs accounted for 14.9% of car research in Jaipur, compared with 11.1% in Bengaluru.
- Hyderabad leads EV research share: The city recorded the highest share among the leading cities at 15.7%.
- Uttar Pradesh tops state-level research: It contributed 13.3% of activity, followed by Maharashtra at 12.3% and Delhi at 9.1%.
- SUVs remain the leading category: Nearly three in four car researchers explored SUVs, with compact SUVs accounting for 41.4% of SUV research.
- Luxury-car interest extends beyond metros: Luxury cars accounted for 6.7% of car research in Patna, matching Bengaluru’s share and exceeding Delhi’s 6%.
Smaller Cities Drive India’s Pre-Festive Car Research
CarDekho Group’s August–September 2026 data suggests that prospective car buyers in smaller cities are becoming an increasingly important audience for automotive brands.
Tier-2 and smaller cities accounted for approximately 58% of research activity on the platform, compared with 42% from Tier-1 cities. This distribution shows that online vehicle research is not concentrated exclusively in India’s largest urban markets.
The festive season is an important period for India’s automotive industry, as consumers often consider major purchases around festivals, promotional offers and favourable financing arrangements. Before visiting a showroom, many buyers use online platforms to compare vehicle prices, specifications, mileage, safety features and available variants.
The high share of research from smaller cities gives automakers another reason to pay attention to consumers beyond metropolitan areas.
Why smaller cities matter to automakers
Automobile manufacturers typically segment markets according to factors such as income, infrastructure, vehicle ownership, dealership access and consumer preferences. However, online research can reveal interest in vehicle categories even before customers approach a dealer.
In smaller cities, buyers may be exploring a broader range of vehicle types, including compact SUVs, premium hatchbacks, luxury cars and electric vehicles.
These preferences can help manufacturers and dealerships understand what potential customers are considering. They may also inform local advertising, inventory planning and the selection of models to display in showrooms.
However, online research does not necessarily translate into a purchase. A person researching several models may be comparing options, gathering information for a future purchase or simply exploring the market.
Jaipur Records Higher EV Research Interest Than Bengaluru
One of the most notable findings is Jaipur’s relatively high share of electric-car research.
| City | EV share of car research |
|---|---|
| Hyderabad | 15.7% |
| Jaipur | 14.9% |
| Bengaluru | 11.1% |
| Mumbai | 11.0% |
| Delhi | 10.5% |
Source: CarDekho Group’s proprietary platform data for August and September 2026, as reported by media outlets. Figures indicate the share of car research involving EVs, not EV market share or vehicle registrations.
Jaipur’s EV research share was 3.8 percentage points higher than Bengaluru’s. This does not mean Jaipur sold more electric cars than Bengaluru; it means electric vehicles represented a larger share of the car research recorded on CarDekho’s platform in Jaipur during the period.
The distinction is important because research activity and actual adoption measure different things. EV purchases depend on factors such as upfront cost, charging access, vehicle range, financing, service availability and the suitability of a model for a household’s driving requirements.
What could explain Jaipur’s EV interest?
The data identifies the difference in research behaviour but does not establish a specific cause for Jaipur’s higher share.
Potential factors that influence EV consideration include the availability of suitable models, running costs, local charging infrastructure, electricity prices, purchase incentives and consumer awareness.
For buyers who primarily drive within a city, the possibility of lower running costs may make electric cars worth investigating. Others may compare EVs with petrol, diesel or CNG vehicles before deciding which technology suits their requirements.
The findings therefore suggest that EV consideration is spreading across different urban markets. They do not establish that Jaipur’s overall EV adoption rate is higher than Bengaluru’s.
More than half of EV research comes from smaller cities
CarDekho’s findings indicate that more than half of all EV research on its platform originated from Tier-2 and smaller cities.
This is relevant because EV adoption is often discussed through the experiences of major metropolitan markets. The data suggests that consumer consideration is also significant outside those centres.
For manufacturers, understanding these audiences could help shape regional marketing, dealer outreach and product education. Potential buyers may need information about charging options, battery warranties, real-world range, maintenance costs and the suitability of different models.
The next question is whether this research activity translates into dealership enquiries, test drives, bookings and registrations.
Uttar Pradesh Leads State-Wise Car Research
At the state level, Uttar Pradesh contributed the largest share of car research on the platform during the period.
| State or region | Share of car research |
|---|---|
| Uttar Pradesh | 13.3% |
| Maharashtra | 12.3% |
| Delhi | 9.1% |
Source: CarDekho Group data reported by ETEntrepreneur and Indian Television Dot Com. Figures represent platform research activity, not each state’s share of vehicle sales.
Uttar Pradesh’s leading position reflects the importance of a large and geographically diverse consumer market. Maharashtra’s presence also highlights the contribution of a state with major urban centres and a broad automotive customer base.
Delhi’s share shows that metropolitan markets remain significant even as smaller cities collectively contribute a larger portion of research.
The figures should not be interpreted as a ranking of car ownership or purchasing power. A state’s share of platform research can be influenced by population, platform usage, internet access and the behaviour of its users.
Patna, Lucknow and Jaipur feature among leading cities
Patna, Lucknow and Jaipur were among the top 10 cities for car research on CarDekho’s platform.
Patna ranked ahead of Ahmedabad and Mumbai in the reported research activity. This points to the relevance of cities outside the traditional largest-market group when manufacturers evaluate consumer interest.
For automakers, city-level research patterns can help identify where specific vehicle segments are attracting attention. However, decisions about dealership expansion and inventory should also consider registrations, sales enquiries, local competition and the availability of after-sales services.
SUVs Continue to Dominate Consumer Interest
SUVs remained the most researched body style in CarDekho’s pre-festive data. Nearly three in four car researchers explored the SUV category.
Within SUV research, compact SUVs accounted for 41.4%. Their share was higher in Tier-2 and smaller cities, at 42.8%, compared with 39.4% in Tier-1 cities.
| SUV research metric | Share |
|---|---|
| Car researchers exploring SUVs | Nearly 75% |
| Compact SUVs as a share of SUV research | 41.4% |
| Compact SUV share in Tier-2 and smaller cities | 42.8% |
| Compact SUV share in Tier-1 cities | 39.4% |
Source: CarDekho Group platform data for August and September 2026, as reported by ETEntrepreneur.
The figures indicate that compact SUVs are an important part of the consideration set for buyers in smaller markets.
Why compact SUVs attract attention
Compact SUVs offer a combination of elevated seating, flexible cabin space and dimensions that can suit both urban driving and longer journeys. They also occupy a broad price range, allowing manufacturers to target different customer groups.
The segment includes models with different powertrains, feature packages and price points. Buyers may compare petrol, diesel, CNG and electric options depending on their driving patterns and budget.
For manufacturers, the high share of compact SUV research could influence product positioning, local advertising and dealership stock planning. However, research share should not be confused with segment sales share: a frequently researched category may not necessarily produce the same proportion of purchases.
Luxury Cars Also Attract Interest in Smaller Markets
The research data also suggests that interest in premium vehicles is not restricted to India’s largest metropolitan areas.
Luxury cars accounted for 6.7% of car research in Patna, matching Bengaluru and exceeding Delhi’s 6% share.
The figures provide an indication that consumers in smaller cities are exploring higher-priced vehicle options. They do not establish how many luxury cars were purchased or the average budget of prospective buyers.
Among luxury-car researchers in Tier-2 and smaller cities, SUVs accounted for nearly 70% of research, compared with 61% in Tier-1 cities.
This points to the importance of the SUV body style even within the luxury category. Premium buyers may consider factors such as cabin space, comfort, technology, safety equipment and brand positioning when comparing vehicles.
Premium hatchbacks remain important
The platform data also showed that premium hatchbacks accounted for 83% of hatchback-related research.
This suggests that many consumers exploring hatchbacks were considering the more premium end of the category rather than treating all hatchbacks as entry-level options.
For manufacturers, the result highlights the value of understanding customer preferences within broad vehicle categories. Research patterns can reveal which combinations of body style, features and price positioning attract attention before a purchase decision is made.
What the Findings Mean for India’s Automotive Industry
The findings provide automakers with a snapshot of consumer interest during a key shopping period.
The 58% contribution from Tier-2 and smaller cities suggests that marketing and sales strategies should account for a wide range of urban markets. Brands that focus exclusively on large metropolitan areas may miss potential customers researching vehicles elsewhere.
At the same time, the Jaipur–Bengaluru EV comparison highlights the importance of looking beyond absolute search volumes. A city’s EV research share can reveal how prominent electric cars are within local consumer consideration, even if the city has a different population or total volume of car research.
For dealerships, the data can be a useful input for planning test drives, local promotions and product education. For manufacturers, it may help identify which vehicle categories deserve greater attention in different markets.
However, the data is most useful when combined with other measures, including actual sales, bookings, registrations, financing applications and customer enquiries.
What Automakers Should Watch Next
Several indicators will help determine whether the research trends translate into commercial growth.
- Conversion from research to purchase: Whether high research activity leads to enquiries, test drives, bookings and completed sales.
- EV research and registrations: Whether cities with high EV consideration also record stronger electric-car registrations.
- Compact SUV demand: Whether the segment’s research share translates into higher sales and sustained demand.
- Regional differences: How consumer preferences vary across cities and states, including model, fuel type and price range.
- Financing and affordability: Whether loan availability, discounts and ownership costs influence purchase decisions.
- Dealer coverage: Whether manufacturers can
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