Up until around March 2020, wireless AA was not allowed in many countries, Still some its not allowed.
https://www.androidpolice.com/2020/03/30/wireless-android-auto-16-new-countries/
Here the complete list of countries where AA wireless is allowed:
What you need
Android Auto on your car display (with a USB cable)
Android Auto on your car display (wireless)
A compatible Android phone with an active data plan, 5 GHz Wi-Fi support and the latest version of the Android Auto app. Wireless projection is compatible with these Android versions:
Any phone with Android 11.0
A Google or Samsung phone with Android 10.0
A Samsung Galaxy S8, Galaxy S8+ or Note 8, with Android 9.0
A compatible car or stereo. Find out if your car or stereo is compatible with Android Auto .
Tips:
To find out if your phone has 5 GHz Wi-Fi support, contact your manufacturer.
In the EU, to use 5 GHz Wi-Fi in the car, your smartphone must comply with additional regulatory requirements. On Google smartphones, Pixel 3 and newer models comply with this requirement.
To find out if your specific car model is compatible with wireless Android Auto, contact your car manufacturer.
Where to use
Argentina
Australia
Austria
Belgium
Bolivia
Brazil
Canada
Chile
Colombia
Costa Rica
Denmark
Dominican Republic
Ecuador
France
Germany
Guatemala
India
Indonesia
Ireland
Italy
Japan (wireless not supported)
Mexico
Netherlands
New Zealand
Norway
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Russia
Singapore
South Africa
South Korea
Spain
Sweden
Switzerland
Taiwan
Thailand
Turkey
United Kingdom
United States
Uruguay
Venezuela
Most features won't work if you use Android Auto outside these countries.