Cheapest Cars in India After GST Reduction: Best Deals You Can Buy Now (2025)

The dream of owning a brand-new car has just become a lot closer for many people in India. In a major move, the government has announced a significant reduction in the GST (Goods and Services Tax) for small cars, and the effect is already being felt across the country. Car prices have dropped, making it a fantastic time to buy, especially if you're looking for a budget-friendly vehicle.



So, what exactly happened? The government's new "GST 2.0" framework, which came into effect on September 22, 2025, has simplified the tax structure for most cars. For small cars, which are defined as having a length of less than 4 meters and an engine size under 1200cc for petrol/LPG/CNG, or under 1500cc for diesel, the tax rate has been slashed from a combined 29-31% down to a flat 18%.

This change is a huge deal because it's the segment that most first-time car buyers and middle-class families look at. A lower tax rate means a lower final price for you, the customer. We're talking about savings of up to ₹1.5 lakh on some popular models. For larger cars and SUVs, the tax is now a simplified 40%, which is also a bit lower than the previous tax plus cess system. The bottom line is, most cars are now cheaper, but the biggest benefits are for those in the budget and small car categories.

Top 15 Most Affordable Cars in India Right Now

With the new prices in place, here's a look at the top 15 cheapest cars you can buy today. This list is a great starting point for anyone looking for an affordable, reliable, and fuel-efficient vehicle.

Sl. no	Model	Starting Ex-Showroom Price (approx.)
1	Maruti Suzuki S-Presso	₹3,49,900
2	Maruti Suzuki Alto K10	₹3,69,900
3	Renault Kwid	₹4,29,900
4	Tata Tiago	₹4,57,490
5	Maruti Suzuki Celerio	₹4,69,900
6	Maruti Suzuki Wagon R	₹4,98,900
7	Maruti Suzuki Eeco	₹5,20,900
8	Maruti Suzuki Ignis	₹5,35,100
9	Hyundai Grand i10 Nios	₹5,47,278
10	Tata Punch	₹5,49,990
11	Nissan Magnite	₹5,61,643
12	Hyundai Exter	₹5,68,033
13	Renault Kiger	₹5,76,300
14	Renault Triber	₹5,76,300
15	Maruti Suzuki Swift	₹5,78,900

Please note: Prices are indicative ex-showroom prices as of September 2025 and may vary based on location and variant. It's always a good idea to check with a local dealer for the exact on-road price.

A Closer Look at the Top Contenders

Now that you've seen the list, let's dive into what makes each of these cars a great choice for budget-conscious buyers. You can also include high-quality images of each car to make the article more visually appealing.

1. Maruti Suzuki S-Presso

Dubbed a "mini-SUV," the S-Presso stands out with its tall-boy design and high ground clearance. This gives you a commanding view of the road and makes it easy to tackle rough patches. Inside, it's surprisingly spacious and comes with modern features like a touchscreen infotainment system.

See full spec of Maruti Suzuki S-Presso

2. Maruti Suzuki Alto K10

The Alto K10 is a legend on Indian roads. Known for its compact size, peppy engine, and incredible fuel efficiency, it’s the perfect car for city driving. It's easy to park, cheap to run, and now, even more affordable to buy. The K10 is proof that a small car can pack a punch.

See full spec of Maruti Suzuki Alto K10



Also Read

Top 5 Cheapest Hatchbacks in India Post-GST Cut (2025)Entry-level models now under ₹5 lakh — ideal for first-time buyers and city commuters.

India’s Top 10 Affordable Compact SUVs After GST Cut (2025)The SUV game just got cheaper — here are the best sub-4-m models now offering big value.

3. Renault Kwid

The Kwid brought an SUV-like style to the entry-level hatchback segment. It has a muscular look and a spacious cabin that feels bigger than its competition. It's a great choice for those who want a car that looks stylish and offers a comfortable ride without breaking the bank.

See full spec of Renault Kwid

4. Tata Tiago

The Tiago is a popular hatchback known for its solid build quality and stylish design. It offers a great mix of features, safety, and a comfortable ride. The Tiago is perfect for families looking for a sturdy and reliable car that offers great value for money.

See full spec of Tata Tiago

5. Maruti Suzuki Celerio

The Celerio is a modern hatchback that combines a smooth design with excellent fuel efficiency. It's known for its spacious cabin and a good amount of boot space. The Celerio is a sensible and stylish choice for those who want a comfortable and economical city car.

See full spec of Maruti Suzuki Celerio

6. Maruti Suzuki Wagon R

The Wagon R is a household name in India. Its "tall boy" design provides an amazing amount of headroom and a roomy feel. It's known for being a very practical family car with plenty of space for everyone and their luggage. It's a dependable and affordable ride.

See full spec of Maruti Suzuki Wagon R

7. Maruti Suzuki Eeco

If you need a car with a lot of space for passengers or cargo, the Eeco is the answer. It's a no-frills van that's a workhorse for both commercial and family use. The Eeco is all about practicality and space, and it's one of the most affordable 7-seaters you can find.

See full spec of Maruti Suzuki Eeco

8. Maruti Suzuki Ignis

The Ignis is a quirky and unique hatchback from Maruti Suzuki's premium Nexa line. It's a great choice for those who want a car that stands out from the crowd. It has a high driving position, making it feel like a small SUV, and comes with a host of modern features.

See full spec of Maruti Suzuki Ignis

9. Hyundai Grand i10 Nios

Hyundai is known for its feature-rich cars, and the Grand i10 Nios is no exception. It has a premium-looking interior and comes packed with features like a touchscreen infotainment system, steering-mounted controls, and multiple safety features. It's a great choice if you want a car that feels more premium without a premium price tag.

See full spec of Hyundai Grand i10 Nios

10. Tata Punch

The Tata Punch is a micro-SUV that has become incredibly popular. It offers the look and feel of an SUV in a compact, easy-to-drive package. With its high safety rating and solid build, the Punch is a great option for those who prioritize safety and a commanding road presence.

See full spec of Tata Punch

11. Nissan Magnite

Nissan's game-changer, the Magnite, is a compact SUV that has impressed buyers with its long feature list and aggressive pricing. Its base variant now falls under ₹6 lakh, making it a very tempting option for anyone who wants an SUV with a lot of bang for their buck.

See full spec of Nissan Magnite

12. Hyundai Exter

The Exter is a new entry to the micro-SUV segment from Hyundai. It's known for its modern and boxy design, and it’s a car that packs a lot of features, including six airbags as standard in some variants. It’s a compelling option for those looking for a safe and stylish city vehicle.

See full spec of Hyundai Exter

13. Renault Kiger

The Kiger is a compact SUV that brings a sporty design and a range of modern features to the budget segment. It has a high ground clearance and a bold look that makes it stand out. If you're looking for a stylish and feature-loaded SUV that's easy on the wallet, the Kiger is worth a look.

See full spec of Renault Kiger

14. Renault Triber

The Triber is a clever and affordable 7-seater car. Its flexible seating arrangement allows you to configure the cabin in different ways, from seating seven people to carrying a lot of luggage. It's a fantastic option for large families on a tight budget.
Click for full specs and details

See full spec of Renault Triber

15. Maruti Suzuki Swift

The Swift is a sporty and beloved hatchback that has been a huge hit in India for years. The base variant now starts right around the ₹6 lakh mark, making this fun-to-drive and spacious car accessible to a new wave of buyers.

See full spec of Maruti Suzuki Swift

The GST reduction is a big win for Indian car buyers. It has made a new car purchase a much more realistic goal for millions of people. With a wide range of affordable and reliable models to choose from, this is the perfect time to visit a showroom and take a step closer to driving home your very own car.