A novel thinned antenna element distribution for cancelling grating lobes (GLs) as well as for reducing phase shifters (PSs) is presented for a two-dimensional phased-array automotive radar application. First, an efficient clustering technique of vertical adjacent elements is employed with array thinning for a PS reduction of 66.7%. In the proposed distribution, several single-element radiators (non-clustered antenna elements) are placed in the vertical direction with specific spacing in a grid of 16 × 12 (192) elements with λ/2 pitch. This disrupts the periodicity of phase-centers after element-clustering and takes a role as steerable GL canceller with capabilities of tracking and nullifying the GL at any scan angle. The proposed distribution enables beam steering up to ±60° in the azimuth plane, as well as ±25° in the elevation plane with cancelled GL and sidelobes. Furthermore, the proposed distribution has been efficiently calibrated with all elements activated by introducing the code division multiple access technique. To the best of the authors’ knowledge, this work represents the first fully calibrated state-of-the-art thinned distribution phased-array including a novel steerable GL canceller to track and nullify GLs.