The recent GST revision on entry-level vehicles has brought good news for budget-conscious buyers in India. With reduced taxes, several popular cars are now available under the ₹5 lakh price point, making them more affordable for first-time owners and small families. Automakers expect this move to revive demand in the hatchback and compact car segment, which has seen a slowdown in recent years.
Here are the five cars that now fall under the ₹5 lakh bracket post-GST cut:
1. Maruti Suzuki Alto K10
One of India’s most trusted entry-level hatchbacks, the Alto K10 offers peppy performance, strong mileage, and low maintenance costs. With its revised price, it has once again become a go-to option for budget buyers.
2. Renault Kwid
The Kwid continues to stand out with its SUV-inspired design, touchscreen infotainment system, and high ground clearance. The GST price cut has made it even more appealing for city as well as semi-urban buyers.
3. Maruti Suzuki S-Presso
Known for its “mini-SUV” stance, the S-Presso combines affordability with style. The new price adjustment makes it a stronger contender for young buyers who want practicality without overspending.
4. Datsun redi-GO
Though positioned as an ultra-compact city car, the redi-GO comes with bold styling and a roomy cabin for its size. Its updated price ensures it remains among the most cost-effective cars in the market.
5. Hyundai Santro (Base Variant)
The Santro continues to hold nostalgic value while offering modern features and a comfortable drive. With GST benefits, the base variant comfortably slides under the ₹5 lakh mark.
Industry Impact
Industry experts believe that these price cuts could boost car sales in the small-car category, which had been shrinking due to rising costs and stricter emission norms. For consumers, it opens the door to more choices without stretching their budgets.
Analysts also suggest that the GST cut could provide automakers a much-needed push to sustain volumes in the mass-market segment, while giving new buyers the confidence to invest in their first four-wheeler.
With the festive season approaching, the timing of this tax relief is expected to further accelerate demand for these budget-friendly models.