Top 5 Affordable Cars Under ₹5 Lakh After GST Cut in India
Check out the top 5 budget-friendly cars under ₹5 lakh in India after the GST rate cut. Find updated prices, key features, and best options for first-time buyers in 2025.
Top 5 affordable cars under ₹5 lakh in India post-GST cut, offering stylish designs and budget-friendly features for 2025.
After the recent GST rate cut, entry-level cars have now become more budget-friendly. Under this new GST regime, small cars attract an 18% GST, compared to the earlier rate of 28% plus cess. This has led to huge price drops that translate into increased affordability of these vehicles.
Here are the five considered best under 5 lakhs that became even more affordable post-GST cut:
1. Maruti Suzuki Alto K10
Starting Price: ₹3.70 lakh
Highlights: This model enjoys the distinction of always remaining a favorite for its fuel efficiency and very low maintenance. The petrol and CNG variants are suited for city commuting and for those learning to be proud first-time car owners.
2. Maruti Suzuki S-Presso
Starting Price: ₹3.50 lakh
Highlights: Referred to as a micro-SUV, the vehicle carries a bold design language with ample ground clearance. It offers petrol and CNG choices and is promoted as the ideal car for small, but stylish people.
3. Maruti Suzuki Wagon R
Starting Price: ₹4.99 lakh
Highlights: Roomy cabin, practical vehicle is the favorite of small families. It is available in petrol and CNG options and has an automatic transmission too.
4. Tata Tiago
Starting Price: ₹4.57 lakh
Highlights: The Tiago is more rugged in build and more modern-looking. It comes with a CNG variant and is also one of the few autos in the respective segment that offers an automatic transmission.
5. Renault Kwid
Starting Price: ₹4.30 lakh
Highlights: Featuring SUV-inspired styling, the Kwid comes equipped with a touchscreen infotainment system and compact dimensions, making it perfect for city driving.
Final Thoughts:
Reduce GST rates to make these cars more affordable and a value-for-money proposition. Be it the first car for buyers, or for students, these may be the testaments between the second family car deciding on balance between economy, features, and style.
Find more information about these models and explore their other variants by visiting any car dealerships in your city.
