Here are some of the most affordable hatchbacks in India from various manufacturers, including Maruti Suzuki and Tata Motors, following the GST revision.
By Sanorita

This year’s festive season will be remembered by both carmakers and buyers in India, thanks to GST 2.0 (effective from September 22, 2025), which has made cars more affordable across segments. If you’re looking to buy a small car in India, prices have dropped considerably across multiple brands, including Maruti Suzuki and Tata Motors, giving you a wide range of options. The tax rate for smaller cars (depending on engine size and length) has been reduced from 28% to 18%. This translates into lower prices for popular models like the Maruti Suzuki S-Presso, Tata Tiago, and Renault Kwid. For many first-time buyers or two-wheeler owners looking to upgrade, this is the perfect time to consider a new car without breaking the bank. Here are our top 5 hatchback recommendations for you.
The Maruti Suzuki S-Presso, with its tall-boy design, could be your ideal choice for daily commutes. Thanks to GST 2.0, prices of this hatchback have dropped by up to Rs 1.30 lakh (ex-showroom), now starting at Rs 3.50 lakh, making it a perfect deal for first-time buyers.
Also Read: Audi Q7, Mercedes-Benz E-Class & More: 5 Luxury Cars With Price Cuts Post GST Slash
The car is powered by a BS6 Phase II-compliant 1.0-litre K10C petrol engine that produces 67bhp and 89Nm, and is paired either with a five-speed manual or AMT gearbox. Fuel efficiency stands at 25.3km/l (AMT) and 24.6km/l (manual). The CNG variant offers 56bhp and 82Nm, and has a mileage of around 32.7km/kg with a manual transmission.

The K10 is a modern evolution of the classic Alto, with prices reduced by up to Rs 1.08 lakh, now starting at Rs 3.70 lakh (ex-showroom). The compact and agile car is ideal for navigating congested city traffic. Buyers can opt for either petrol or CNG variants. The 1.0-litre petrol engine delivers 68bhp and 91Nm of torque, while the CNG version produces 56bhp and 82Nm. The petrol model offers a choice between a 5-speed manual transmission (MT) and a 5-speed automated manual transmission (AMT).
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The Renault Kwid, featuring an SUV-inspired design, offers a practical yet stylish option in the entry-level segment. Following the GST revision, its prices have dropped by up to Rs 40,095, now starting at Rs 4.30 lakh (ex-showroom).
Under the hood, the Kwid has a 1.0-litre, three-cylinder naturally aspirated petrol engine, paired with a standard 5-speed manual gearbox. An AMT option is available on all trims except the base model.

The Tiago, now priced from Rs 4.57 lakh (ex-showroom), is also a noteworthy option to consider in the segment. It is powered by a 1.2-litre Revotron engine and offers a choice between a five-speed manual transmission and a five-speed AMT. Additionally, a CNG variant is available.

The Celerio, with its tall, spacious design, makes an ideal option for everyday commuting. Following GST 2.0, the hatchback’s price has been reduced by as much as Rs 94,100, bringing it down to Rs 4.70 lakh (ex-showroom). Mechanically, the Maruti Suzuki car packs a 1.0-litre three-cylinder K-Series petrol engine that produces 66bhp and 89Nm, and is paired with either a five-speed manual or an AMT transmission.
Also Read: Tata Nexon, Kia Sonet & More: 5 Sub-4m SUVs to Get More Affordable Post GST 2.0
The CNG variant is also available, with power and torque outputs of 56bhp and 82.1Nm, respectively. This version comes exclusively with a five-speed manual gearbox.