For many Indian families, buying their own car is like achieving a ‘dream’ – a symbol of freedom and convenience. The car search in middle-class Indian families begins with a defined budget, and with prices going higher, it may feel like a challenge. But due to recent GST reforms, your dreams can now come true. The prices of the most popular budget cars in India have dropped, making your dream of owning a car more accessible. In this blog, we will provide you with “Top 7 Budget Cars Under 5 Lakh after GST 2.0”.
This is an enormous opportunity for budget-conscious buyers, as the government’s latest policy aims to save more money for consumers in India.
The GST Impact: What Does it Mean for You?
The Indian Government, in its recent GST policy, announced a reduction in GST rates for compact cars (ex-showroom price under ₹7 Lakh) from 28% to 18%, which will provide incredible savings of up to ₹40,000-₹60,000 on many top-selling entry-level hatchbacks.
For example, the on-road price of the popular Maruti Suzuki Alto K10 fell by about ₹30,000 almost overnight, creating a very compelling reason to buy now. The market is showing a clear signal: now is the time to buy.
Top 7 Budget Cars Under ₹5 Lakh (Ex-Showroom)
Here are some top popular and value-for-money cars that are now available at even lower prices, with a focus on their key specifications as well.
Maruti Suzuki Alto K10 (₹3.70 lakh)
The undisputed king of the segment, this vehicle is perfect for new families due to its exceptional fuel efficiency and extremely low-maintenance cost. Its outfit fit is a modern 1.0L K10C Dual Jet, Dual VVT engine, producing about 66 bhp.
It comes up with a mileage of up to 24.9 km/l (ARAI), helping you keep your monthly fuel bills low. Importantly, the AGS (Auto Gear Shift) automatic option will certainly help you avoid the difficulty of driving in city traffic, which is a blessing.
Maruti Suzuki S-Presso (₹3.50 lakh)
A budget car that you can actually look & feel like a bigger car. It comes with the same 1.0L K10C engine that gives it high fuel efficiency as well. The `mini-SUV’ look, ground clearance, and elevated seat positioning provide a commanding view to the driver, a reassuring feature for daily city driving and occasional off-roading.
Renault Kwid (₹4.30 lakh)
The Kwid stands out for its modern, SUV-inspired design. It comes with a reliable 1.0L SCe petrol engine (68bhp) that offers you perfect city driving. Some key highlights are the class-leading 184mm ground clearance, perfect for Indian road conditions. A massive 279-litre boot space, a huge benefit for family luggage and your weekly grocery shopping.
Tata Tiago (₹4.57 lakh)
If safety is a major concern, there is only one winner—the Tiago. It is the only car on this list that has an outstanding 4-star Global NCAP safety rating. If you value safety for you and your family, this is a car you shouldn’t avoid.
The Tiago also has a 1.2L Riverton petrol engine (85 bhp) that has been tuned for greater low-end torque. The result? You will experience quicker and more responsive acceleration, easier and quicker overtaking in busy urban traffic.
Maruti Suzuki Celerio (₹4.70 lakh)
This car is the master of interior space and efficiency. It uses the same reliable K10C engine, just like the original Celerio, but its lighter platform delivers one of the highest mileage in this segment, sometimes crossing 26km/l mark.
The smart packaging makes the cabin surprisingly roomy, making it comfortable for five adults to sit without any hassle.
Citroen C3 (₹4.80 lakh)
A stylish newcomer to the list, the Citroen C3 has some European flair with it. A ground clearance of 180mm and the famous compliant suspensions, the C3 can glide over rough and unpaved roads without even making you feel it. The 1.2L PureTech petrol engine, known for its refinement, provides a smooth, comfortable ride for daily commuting.
Maruti Suzuki Wagon R (₹4.99 lakh)
The iconic ‘tall boy’ hatchback is a benchmark for practicality. The Wagon R has 2 petrol engines available, a fuel-efficient 1.0L, and a slightly more powerful 1.2L petrol engine, which offers you the versatility to choose. It gives you the largest boot space in its class, making it perfect for family use and cargo work.
TIPS For Smart Buyers
- Ex-showroom Price vs On-road Price: Always confirm the final on-road price before buying because it includes registration, insurance, and other charges as well.
- Go for CNG: Consider variants with factory-fitted CNG kits for long-term fuel cost savings.
Test Drive: Always test-drive your chosen car to evaluate driving comfort and features before making a decision to buy.