Top 5 Cheapest Hatchbacks in India Post-GST Cut (2025)

Hey there! If you’ve been planning to buy a new car, you’ve picked the absolute best time. The Indian government recently announced some major changes to the Goods and Services Tax (GST) for smaller cars, and the benefit has landed straight in your pocket!



Before this change, small cars attracted a high tax rate. Now, the GST on these compact models has been significantly reduced. For you, the customer, this means one thing: big price cuts on India’s most popular, affordable hatchbacks.

This is a fantastic opportunity for first-time buyers, students, or families looking for a reliable, second car. The best part? Several top models are now available for well under ₹5 lakh after GST cut, making that new car dream much easier to achieve! Let’s dive into the top 5 entry-level hatchbacks that now offer unbeatable value.

Top 5 Cheapest Hatchbacks You Can Buy Right Now (2025)

We’ve compiled a list of the five most budget-friendly hatchbacks currently on the market, showing their incredible new starting prices post-GST reduction. These are all excellent choices for city driving, great mileage, and low maintenance.

Rank	Model Name	Starting Ex-Showroom Price (Post-GST Cut)	Approx. Price Reduction
1	Maruti Suzuki S-Presso	₹3.50 Lakh	Up to ₹1.30 Lakh
2	Maruti Suzuki Alto K10	₹3.70 Lakh	Up to ₹1.08 Lakh
3	Renault Kwid	₹4.30 Lakh	Up to ₹40,000
4	Tata Tiago	₹4.57 Lakh	Up to ₹75,000
5	Maruti Suzuki Wagon R	₹4.99 Lakh	Up to ₹80,000

1. Maruti Suzuki S-Presso

Price (Ex-showroom)	₹3.50 lakh
Mileage	Around 21.4 km/l
Engine	998 cc
Why It’s Worth It	Think of the S-Presso as a mini-SUV in a hatchback body. It’s small on the outside but tall and roomy inside. After the GST reduction, it’s now positioned very close to the Alto in pricing — a strong value pick for those who want a slightly bigger stance.
Downsides	Tall design gives it a bit of body roll on highways.
Full Specs	View full specs of Maruti Suzuki S-Presso

2. Maruti Suzuki Alto K10

Price (Ex-showroom)	₹3.69 lakh
Mileage	Around 24.4 km/l
Engine	998 cc, 3-cylinder petrol
Why It’s Worth It	The Alto K10 remains one of the most affordable hatchbacks in India. It’s light, easy to drive, and ideal for city use. With the GST cut, it has become even better value for first-time car buyers or those upgrading from a two-wheeler.
Downsides	Basic interiors and limited features on lower variants.
Full Specs	View full specs of Maruti Suzuki Alto K10

3. Renault Kwid

Price (Ex-showroom)	₹4.30 lakh
Mileage	Around 21.46 km/l
Engine	999 cc
Why It’s Worth It	The Kwid has always been the most stylish car under ₹5 lakh. Its SUV-inspired design, touchscreen infotainment, and digital instrument cluster make it feel more premium than it costs. Post-GST price cuts have made it a serious rival to Maruti’s entry-level models.
Downsides	Service availability is not as wide as Maruti.
Full Specs	View full specs of Renault Kwid

4. Tata Tiago

Price (Ex-showroom)	₹4.57 lakh
Mileage	Around 19–23 km/l
Engine	1199 cc
Why It’s Worth It	The Tata Tiago brings a stronger build quality and better safety rating compared to most cars in this budget range. With the GST cut bringing down its price, it’s become an attractive pick for buyers who want a hatchback that feels sturdy, looks modern, and still costs close to ₹5 lakh. The Tiago offers premium touches like a Harman audio system, digital instrument cluster, and multiple colour options that appeal to young buyers.
Downsides	Slightly higher maintenance costs than entry-level Marutis, and the 3-cylinder engine can feel a bit noisy at high revs.
Full Specs	View full specs of Tata Tiago

5. Maruti Suzuki Wagon R

Price (Ex-showroom)	₹4.99 lakh
Mileage	Around 21.79 km/l
Engine	998 cc
Why It’s Worth It	The Wagon R offers incredible space for its size. Its tall-boy design, proven reliability, and strong resale value make it one of India’s most practical hatchbacks. The GST cut has helped it stay just around the ₹5 lakh line for its entry trim.
Downsides	Base variant misses out on some comfort features.
Full Specs	View full specs of Maruti Suzuki Wagon R

Is This the Right Time to Buy?

Absolutely! The GST rate reduction is a fantastic incentive that directly lowers the initial purchase price of these popular and affordable entry-level cars. Whether you’re looking for a dependable workhorse, a high-mileage commuter, or the safest option for your family, the market for the cheapest hatchbacks in India 2025 has never been better.

Also Read

Cheapest Cars in India After GST Reduction (2025)Small-car price drop just hit — top models now come in at un-believable budget levels.

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.

Don't wait too long—with festive season demand picking up, now is the perfect time to visit a showroom and take advantage of these new, lower prices and potentially even better festive offers! Happy driving!