Which Is the Cheapest Car in India?

Which Is the Cheapest Car in India? – A Deep Dive

Buying a car is a big milestone in many people’s lives. For many Indian buyers, cost is often the most important factor. Over recent years, however, the notion of “cheapest car” has changed a lot — from tiny low-powered hatchbacks to small SUVs and even quadricycles. In this blog post, we will explore which car is currently the least expensive in India (as of 2025), why it's cheap, what trade-offs you make, and whether it's the right pick for you.

What Does “Cheapest” Mean?

Before naming the cheapest car, it's important to clarify what “cheap” means in this context:

Ex-showroom price: The base price of the car before additions like road tax, insurance, registration, and other charges.
Fuel type: Petrol, CNG, or electric — this affects running cost.
Size and category: A quadricycle or microcar is different from a full car. Some “budget vehicles” are not comparable in quality or safety.
Features: Cheaper cars may lack modern safety or convenience features.

With these in mind, let’s look at some of the top contenders for the “cheapest car” in India and then highlight which one stands out today.

Some of the Current Cheapest Cars in India (2025)

Based on recent data, here are some of the most affordable cars in the Indian market:

Maruti Suzuki Alto K10: Often cited as the most affordable passenger car in India.

Ex-showroom price: around ₹4.23 lakh for its base variant.
Fuel type: Petrol and CNG available.
Mileage: Very good fuel efficiency — for petrol, about 24.39 km/l.
Transmission options include manual and AMT (automatic).
Pros: Very low maintenance, widespread service network, reliable brand (Maruti).

Maruti Suzuki Alto K10

The Maruti Suzuki Alto K10 is one of India’s most popular entry-level hatchbacks, known for its affordable price, practical design, and excellent fuel efficiency. For first-time buyers or anyone looking for a budget-friendly city car, the Alto K10 continues to be a smart and reliable choice.

The design of the Alto K10 is simple yet modern. Its compact size makes it extremely easy to handle in tight city lanes and heavy traffic. The car is light, stable, and perfect for daily commuting. Inside the cabin, the layout is basic but functional. Maruti has added essential features like a digital instrument cluster, power windows, and an infotainment unit in higher variants. While it may not offer premium interiors, the overall comfort is impressive for this price range.

Under the hood, the Alto K10 is powered by a 1.0-litre petrol engine that delivers smooth performance and excellent mileage. The engine feels responsive whether you drive in manual or AMT (automatic) transmission. One of its biggest strengths is fuel economy, making it a great option for people who want low running costs. The CNG variant adds even more savings and is perfect for daily office travel.

Being a Maruti car, maintenance costs are very low and spare parts are easily available across the country. The brand’s service network is another reason why the Alto K10 remains a trusted family car.

Overall, the Maruti Suzuki Alto K10 offers great value for money, combining affordability, mileage, and reliability—making it one of the best budget cars in India.

Maruti Suzuki S-Presso: Another very budget-friendly car.
- According to INPA, its AMT variant starts at ~₹4.27 lakh.
- It has a “tall boy” design, giving it a bit more ground clearance and a unique look among hatchbacks.
- Mileage is decent, and there are multiple variants including CNG
- Trade-off: less power, basic interiors compared to higher-priced cars.
- Maruti Suzuki S-Presso
- The Maruti Suzuki S-Presso is a compact urban car designed for buyers who want affordability, a bold design, and a comfortable driving experience. Often called a “mini SUV,” the S-Presso stands out with its tall stance, high seating position, and modern styling that appeals to young drivers as well as small families.
  One of the biggest advantages of the S-Presso is its excellent visibility. The raised seat height gives the driver a clear view of the road, making it easy to navigate crowded streets and tight parking spaces. The interior is simple yet smart, with a centrally placed instrument cluster and a touchscreen infotainment system in higher variants. The cabin offers surprisingly good headroom and legroom despite its compact size.
  Powering the S-Presso is Maruti’s reliable 1.0-litre K-Series petrol engine. It delivers smooth performance, quick throttle response, and impressive fuel efficiency. The car is available in both manual and AMT automatic options, giving buyers flexibility based on their driving needs. The CNG variant further reduces running costs, making it an ideal choice for daily commuters.
  When it comes to safety, the S-Presso includes features like dual airbags, ABS with EBD, rear parking sensors, and seatbelt reminders. Maruti’s wide service network and low maintenance cost add to its overall value.
  The S-Presso is perfect for buyers who want an affordable car that feels slightly more stylish and spacious than typical entry-level hatchbacks. Its SUV-inspired look, efficient engine, and budget-friendly pricing make it a strong contender in the small car segment.
Renault Kwid: A strong competitor in the budget segment with a slightly SUV-inspired design.
- Ex-showroom price: starts at around ₹4.70 lakhFuel type: Petrol (and CNG in some variants) Mileage: Around ~22 km/l (petrol) for some variants.
- Highlight: Despite being cheap, it has modern design touches and decent space for a small car.
- Here is a 100% original, non-copyrighted, 250-word blogger-friendly article on Renault Kwid in English:
  Renault Kwid
  The Renault Kwid is one of the most stylish and affordable hatchbacks in India, designed especially for buyers who want a budget-friendly car without compromising on looks and features. With its SUV-inspired design, strong road presence, and modern interiors, the Kwid has become a popular choice among young drivers and first-time car owners.
  The exterior of the Kwid stands out with its bold front grille, LED daytime running lights, and muscular body lines. Its high ground clearance gives it an SUV-like feel, making it easy to drive on uneven city roads. Despite being a small car, the Kwid looks premium and sporty, which is one of its strongest selling points.
  Inside, the cabin is surprisingly spacious for a compact hatchback. It features a touchscreen infotainment system with Android Auto and Apple CarPlay in higher variants, a digital instrument cluster, and comfortable seating. The layout is modern and practical, offering good storage space for everyday use.
  The Renault Kwid is powered by a fuel-efficient 1.0-litre petrol engine that delivers smooth performance for daily commuting. The car is available in both manual and AMT automatic options, giving buyers flexibility. Its mileage is one of the best in the segment, making it economical for long-term use.
  Safety features include dual airbags, ABS with EBD, reverse parking sensors, and seatbelt reminders. Maintenance costs remain reasonable thanks to Renault’s expanding service network.
  Overall, the Renault Kwid is a perfect combination of style, efficiency, and value—an ideal choice for budget-conscious buyers who still want a modern, feature-rich car.
Tata Tiago: Slightly more expensive than the absolute cheapest, but offers a great balance of price, safety, and features.
- Ex-showroom price: From around ₹5 lakh (though some lists say up to ~₹5.5 lakh).
- Fuel type: Petrol and CNG versions.
- Mileage: Roughly ~20 km/l for petrol.
- Safety: Known to have good build quality and safety credentials.
- Tata Tiago
  The Tata Tiago is one of the most popular hatchbacks in India, known for its strong build quality, attractive design, and impressive value for money. It appeals to both first-time buyers and families who want a reliable, safe, and feature-rich small car at an affordable price.
  The exterior of the Tiago stands out with its sporty styling, sharp character lines, and signature Tata grille. Its compact size makes it ideal for city driving, while the solid build gives it a confident road presence. Tata has focused heavily on safety, and the Tiago is well-known for its sturdy structure, making it one of the safest cars in its segment.
  Inside the cabin, the Tiago offers a premium feel with comfortable seats, quality materials, and a well-designed dashboard. Features like a touchscreen infotainment system, smartphone connectivity, steering-mounted controls, and multiple storage spaces enhance the overall driving experience. The cabin is spacious enough for small families, with good legroom and headroom.
  The Tiago is powered by a refined 1.2-litre petrol engine that provides smooth performance and excellent mileage. It is available in both manual and AMT automatic options, allowing buyers to choose based on their driving preferences. The CNG variant offers even lower running costs, making it perfect for daily commuters.
  With dual airbags, ABS with EBD, corner stability control, and rear parking sensors, the Tiago ensures safety remains a priority. Tata’s improving service network and low maintenance cost add further value.
  Overall, the Tata Tiago is a balanced package of safety, style, efficiency, and affordability—making it a strong contender in the budget hatchback segment.
Hyundai Santro: Another budget car option. According to GoMechanic, its price ranges from ~₹5.2 lakh to ~₹6.5 lakh.
- Fuel types: Petrol, and in many cases CNG.
- Mileage: ~20.3 km/l.
- Benefit: Good brand network, trusted after-sales service.
- Here is a 100% original, non-copyrighted, 250-word blogger-friendly article on Hyundai Santro in English:
  Hyundai Santro
  The Hyundai Santro is one of India’s most iconic hatchbacks, known for its reliability, comfort, and family-friendly design. Over the years, the Santro has earned a strong reputation for being a practical and budget-friendly car that delivers a smooth and enjoyable driving experience.
  On the outside, the Santro features a clean and modern design with a compact body, stylish front grille, and well-shaped headlamps. Its tall-boy stance offers excellent visibility and makes it easy to drive through busy city roads. The compact dimensions also help in effortless parking, especially in crowded urban areas.
  Inside the cabin, the Santro offers impressive space for a small car. The seats are comfortable, and the wide dashboard layout includes appealing touches like a touchscreen infotainment system in higher variants. Features such as Apple CarPlay, Android Auto, rear AC vents, and power windows enhance convenience and comfort for passengers. Hyundai is known for its refined interiors, and the Santro lives up to that reputation.
  The car is powered by a 1.1-litre petrol engine that delivers smooth acceleration and great fuel efficiency. It is available in both manual and AMT automatic variants, giving buyers flexibility based on their driving habits. There is also a factory-fitted CNG option for those who want economical daily travel.
  Safety features include dual airbags, ABS with EBD, rear parking sensors, and a sturdy body structure. Hyundai’s strong service network and low maintenance costs make the Santro a dependable long-term choice.
  Overall, the Hyundai Santro remains a practical, comfortable, and value-packed hatchback that suits families and first-time car buyers alike.

Special Mention: The Quadricycle / Micro-Car Option

There is a very interesting vehicle called the Bajaj Qute, which some sources list as one of the cheapest “cars” in India, though it is technically a quadricycle. According to some lists, its price is around ₹3.61 lakh.

Because the Qute is not a full-fledged car (in many regulatory senses), it has trade-offs: limited speed, lower power, and simpler safety features. But for city commuting, it's an economical and very small-footprint option.

Historical Note: Tata Nano and Tara Tiny

To understand “cheap car” in India, it's good to look back:

Tata Nano: When it was launched, Tata called it the “people’s car.” It was famously very cheap. But over the years, the Nano was phased out due to poor sales, changing regulations, and reduced demand.
Tara Tiny: This is an electric micro-car made by Tara International. According to its Wikipedia page, the Tara Tiny was once priced around ₹99,999 (~₹1 lakh).However, such extremely cheap EVs remain more of a niche or limited-production product, and not widely available via mainstream dealerships.

Why Are Some Cars So Cheap?

Several factors contribute to the low price of these budget vehicles in India:

Small Engine: Budget cars usually have small displacement engines (0.8 L, 1.0 L, or similar) which reduces costs.
Lightweight Build: These cars are small and light, which reduces material and manufacturing cost.
Simplified Features: To keep costs down, basic versions may lack advanced infotainment, premium interiors, or many safety features.
High Volume Production: Brands like Maruti Suzuki make these cars in large numbers, which helps in economies of scale.
Tax and Regulation Benefits: Smaller cars sometimes benefit from lower taxes or favorable regulations.
Fuel Efficiency: Low running cost is attractive to buyers — good mileage helps make these cars more economical in the long run.

Trade-offs and Risks of Buying the Very Cheapest Car

While cheap cars sound very appealing, there are some important trade-offs and risks:

Safety: Very cheap cars may compromise on safety. While some budget cars now offer airbags and ABS, they often don’t have advanced safety features like stability control, crash-optimized structures, or modern driver-assist systems.
Comfort: Interiors may feel basic. Less sound insulation, simpler seats, and fewer luxury touches.
Performance: Smaller engines deliver less power. These cars are fine for city driving but may struggle on highways or steep inclines.
Resale Value: Entry-level cars may depreciate quickly, especially if the brand or model is not very popular.
Running Cost: While fuel efficiency might be good, maintenance cost, spare parts, and servicing frequency are important to check.
Regulatory Risk: New safety or emission norms may phase out some older “cheap” models or make them more expensive to produce, affecting future resale.

Which Is the Best “Cheapest” Car to Buy (for Different Use Cases)

Depending on your priority, the “cheapest car” for you might be different:

For City Commuting & Tight Budget:
- Maruti Alto K10 or S-Presso are excellent choices: very affordable, efficient, easy to park, and cheap to maintain.
- If you don’t mind a quadricycle and want something extremely compact, the Bajaj Qute might work (but check local regulations and usability).
For Safety + Value:
- Tata Tiago stands out for its build quality, relatively higher safety, and still reasonable price.
For Style + Modern Features:
- Renault Kwid: Its design, digital display, and SUV-like looks make it attractive beyond just being cheap.

Impact of Recent Policy Changes

One big change that affects the pricing of small cars in India is the GST reform. According to reports, India reduced the GST (Goods and Services Tax) on small cars — from 28% to 18% for cars that are under 4 meters and have small petrol or diesel engines.

Because of this cut, many small cars have become significantly more affordable.
This makes the already cheap cars even more attractive to first-time buyers or people looking for a very economical car.

Conclusion: So Which Is the Cheapest Car Now?

Based on current (2025) data:

The Maruti Alto K10 is widely recognized as the cheapest mainstream passenger car in India.
If you include quadricycles, the Bajaj Qute is even cheaper (ex-showroom), but it’s a very different type of vehicle.
For a balance of cost and quality, the Tata Tiago is a strong candidate.

That said, “cheapest” doesn’t always mean “best” — especially if you care about safety, driving comfort, or long-term value. Buyers should carefully weigh the pros and cons, consider running costs, and maybe even think a little more upfront to save trouble later.

Which Is the Cheapest Car in India? – A Deep Dive