6 Cheapest Cars in India in 2025

As car ownership continues to be a significant aspiration for millions across India, affordability plays a critical role in purchase decisions. In 2025, several automakers are delivering feature-rich, budget-friendly cars without compromising on performance, safety, or style. Here's a closer look at the six most economical cars you can buy in India this year.

1. Maruti Suzuki Alto K10

• Starting Price: ₹3.99 lakh (ex-showroom)
• Engine: 1.0L K-Series Petrol
• Mileage: Up to 24.39 km/l

The Alto K10 remains a go-to option for first-time car buyers. Known for its compact design, fuel efficiency, and reliability, this hatchback is ideal for city commuting and offers one of the lowest maintenance costs in the segment.

2. Maruti Suzuki S-Presso

• Starting Price: ₹4.26 lakh (ex-showroom)
• Engine: 1.0L Petrol
• Mileage: Up to 25.30 km/l

With SUV-inspired styling, the S-Presso offers a higher seating position and solid ground clearance. Its peppy engine, spacious cabin, and modern infotainment options make it an appealing choice for budget-conscious urban drivers.

3. Renault Kwid

• Starting Price: ₹4.69 lakh (ex-showroom)
• Engine Options: 0.8L & 1.0L Petrol
• Mileage: Up to 22.3 km/l

Blending bold design with practicality, the Renault Kwid features SUV-like looks, touchscreen infotainment, and digital instrument cluster. It’s an ideal budget hatchback with a strong road presence and decent boot space.

4. Tata Tiago

• Starting Price: ₹4.99 lakh (ex-showroom)
• Engine: 1.2L Petrol
• Mileage: Up to 26.49 km/l

Tata Tiago offers a robust build, premium interiors, and high safety ratings. With excellent driving dynamics and top-tier features, it's a great entry-level car that balances cost, comfort, and quality.

5. Maruti Suzuki Celerio

• Starting Price: ₹5.64 lakh (ex-showroom)
• Engine: 1.0L Petrol
• Mileage: Up to 25.24 km/l

The Celerio stands out with its smooth ride quality, ample cabin space, and best-in-class fuel efficiency. It also offers AMT options for easy city driving and comes with practical storage solutions.

6. Maruti Suzuki Wagon R

• Starting Price: ₹5.64 lakh (ex-showroom)
• Engine Options: 1.0L & 1.2L Petrol
• Mileage: Up to 25.19 km/l

Known as India’s favorite family car, the Wagon R provides a tall-boy design, spacious interior, and strong resale value. It comfortably accommodates five passengers and continues to be a practical and affordable choice in its segment.

India’s cheapest cars in 2025 are not just about low prices—they represent smart choices for new drivers, city dwellers, and families alike. With improved fuel efficiency, safety, and tech features, these cars are proof that driving a reliable, stylish, and efficient vehicle no longer needs to come with a hefty price tag.