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CAR INSURANCE

Top Most Affordable Cars in India for 2025

Shamshuddin S 20 August 2025

As of today, a wide spectrum of low-budget cars in India is available to cater to the needs of those requiring a budget-friendly vehicle. But here’s the best part: Just because these cars are cost-efficient, it does not mean that they compromise on features and efficiency, as they can still ensure a smooth performance, so you can enjoy the most comfortable rides at all times. In case you are looking to buy one for yourself, then we are here to help!

Most Affordable Cars in India

Take a look at our list of the best budget cars in India favoured by budget-conscious buyers, including compact hatchbacks, mini SUVs, MPVs, and electric vehicles, aligning with the evolving preference for economical, city-friendly, and environmentally conscious vehicles.

List of Cheapest Cars in India in 2025

Looking to buy the best budget cars in India that are easy on your pocket? Then check out the list below to consider the top choices:

Car Model Fuel Type Engine Displacement (cc or bhp) Mileage (kmpl) Ex-Showroom Starting Price (₹)
Bajaj Qute RE60 Petrol/CNG 216 cc 35 - 43 kmpl ₹3.61 lakhs
Maruti Suzuki Alto K10 Petrol 998 cc 24.39 - 24.9 kmpl ₹4.23 lakhs
Maruti Suzuki S-Presso Petrol 998 cc 24.12 - 25.3 kmpl ₹4.26 lakhs
Strom Motors R3 Electric 20.11 bhp 200 km per charge ₹4.50 lakhs
Renault KWID Petrol 999 cc 21 - 22 kmpl ₹4.69 lakhs
PMV EaS E Electric 13.41 bhp 120 km per charge ₹4.79 lakhs
Maruti Suzuki Alto Tour H1 Petrol/CNG 998 cc 24.60 kmpl ₹4.80 lakhs
Tata Tiago Petrol 1199 cc 19.01 kmpl ₹5.00 lakhs
Tata Punch Petrol 1199 cc 14 to 18 kmpl  ₹6.2 lakhs
Maruti Suzuki Eeco Petrol/CNG 1197 cc 19.71 kmpl ₹5.32 lakhs
Maruti Suzuki Wagon R Petrol/CNG 998 cc to 1197 cc  23.56 - 25.19 kmpl ₹5.65 lakhs
Maruti Suzuki Celerio Petrol/CNG 998 cc 26 kmpl ₹5.64 lakhs
Maruti Suzuki Ignis Petrol 1197 cc 20.89 kmpl ₹5.85 lakhs
Hyundai Grand i10 Nios Petrol/Diesel/CNG 998 cc to 1197 cc 19 kmpl ₹5.84 lakhs
Hyundai Exter Petrol/CNG 1197 cc 27.1 kmpl ₹6.1 lakhs
Citroen C3 Petrol 1119 cc 18.3-19.3 kmpl ₹6.1 lakhs

1. Bajaj Qute RE60

Considered as the least expensive four-wheeler in India, this car is also termed as India’s first quadricycle. Its smooth, compact dimensions make it easy to drive, and it is considered an environmentally friendly option with low carbon emissions.

  • Vehicle Type: Quadricycle
  • Key Features: Child safety locks, all-weather model, mechanical rear parking brakes, impact sensing auto door lock, vanity mirrors, 12V power outlet, basic instrument console.

2. Maruti Suzuki Alto K10

This hatchback model offers the perfect blend of practicality, efficiency, and affordability. It is equipped with a 1.0-litre Dual-Jet petrol engine, and is a good choice for first-time buyers, being handy to drive with light controls and compact size, offering easy manoeuvring in traffic.

  • Vehicle Type: Hatchback
  • Key Features: 7-inch touchscreen infotainment, AGS automatic transmission, dual airbags, ABS with EBD, and a driver-side airbag standard (certain variants).

3. Maruti Suzuki S-Presso

This best car at a low price is a perfect combination of style, comfort, and efficiency, offering both automatic and manual transmissions. Its efficiency makes it easy to manoeuvre in traffic conditions, with its name being popularly inspired by the ‘espresso’ coffee.

  • Vehicle Type: Hatchback
  • Key Features: 7-inch touchscreen, Steering-mounted control, Reverse parking sensors, dual front airbags, and ABS with EBD.

4. Strom Motors R3

Perfect for those who want a stylish, low-cost and sustainable ride, it is known to be one of the tiniest electric vehicles available in India, blending smart technology features with a minimalist design.

  • Vehicle Type: Electric Hatchback
  • Key Features: 7-inch touchscreen, Keyless Entry & Power Windows, voice and gesture control, climate control, and GPS navigation, Three-point safety belt system, assisted parking systems.

5. Renault KWID

This low-cost car in India is a good choice to consider, with its light controls that make it easy to navigate tight parking spots or dense traffic. It provides a smooth, quality ride, especially in the city, equipped with a powerful 1.0 SCe engine and complemented by electric steering.

  • Vehicle Type: Hatchback
  • Key Features: Reverse camera, Rear power windows, Rear armrest, Airbags (driver and front passenger), child lock, speed warning, seat belt sensors.

6. PMV EaS E

This tiny EV is an ideal choice for urban commuting, be it daily errands, school runs, and short commutes, combining the benefits of sustainable mobility with smart features in a compact vehicle. Providing three ranges, good ground clearance, and balanced proportions, it provides practicality with affordability.

  • Vehicle Type: Electric Hatchback
  • Key Features: LCD digital display, Keyless entry, one airbag, seat belts, assisted parking, cruise control, rearview camera.

7. Maruti Suzuki Alto Tour H1

In the low price car list, this model stands out as a variant of the Alto K10, offering enhanced functionality and convenience, suitable for urban and suburban commutes. This model is fuel-efficient, low-maintenance, and tailored for fleet and taxi operations.

  • Vehicle Type: Hatchback
  • Key Features: Power steering, ABS, and Power Front windows, engine mobilizer, front airbags, seat belt warnings, and parking sensors.

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8. Tata Tiago

This feature-rich model is a smart choice for those seeking a budget-friendly, spacious, and fuel-efficient hatchback. Equipped with multiple safety features, it offers the perfect blend of style, safety, and smart technology.

  • Vehicle Type: Hatchback
  • Key Features: Fully digital instrument cluster, auto climate control, cooled glovebox, ABS with EBD, two airbags, a tyre pressure monitoring system, ESC, ISOFIX child seat mounts, and seatbelt pretensioners for the front seats.

9. Maruti Celerio

Offering compact proportions, this model is perfect for those just learning to drive, offering a lightweight design and effortless handling. It is spacious enough to seat up to five passengers, offering versatile features and excellent value without stretching your budget.

  • Vehicle Type: Hatchback
  • Key Features: Passive keyless entry, Idle engine start/stop, 7-inch touchscreen infotainment, Seat belt reminders, ABS with EBD, pedestrian protection, immobiliser, child-safe rear door lock.

10. Maruti Suzuki Eeco

For both family and business needs, opt for this model with a space-maximising boxy design and simple body lines all around, ensuring plenty of cargo capacity for convenient transportation. Enjoy versatile space, reliable performance, and unmatched affordability all at once.

  • Vehicle Type: Wagon
  • Key Features: 12-volt auxiliary plug, side impact beams, sun visors, sliding doors, Child safety locks, speed alert system, engine immobiliser, seat belt warning, and EBD.

11. Maruti Suzuki Ignis

Providing efficient performance for off-road excursions and city driving alike, it offers compact design, advanced technology, and budget-friendly options. It consists of a quirky design and a roomy, cosy interior, while also offering manual and automatic transmission for ease of driving.

  • Vehicle Type: Hatchback
  • Key Features: LED projector headlamps, Dual airbags, ABS, child safety locks, anti-theft alarm, ESC, EBD, and ISOFIX child seat mounts.

12. Maruti Suzuki Wagon R

Perfect for families in urban areas, this model offers a tall-boy design with useful cabin space, fuel efficiency and well-built seats. It provides excellent value as a comfortable, easy-to-drive and low-cost car in India.

  • Vehicle Type: Hatchback
  • Key Features: 7-inch touchscreen infotainment with Android Auto and Apple CarPlay compatibility, dual front airbags, ABS with EBD, ESP, rear parking sensors and hill-hold assist function.

13. Hyundai Grand i10 Nios

Known for its exceptional build quality and comfort, this best budget car in India, offering a spacious design to fit 5 passengers with plenty of features, and is easy to manoeuvre in urban driving conditions.

  • Vehicle Type: Hatchback
  • Key Features: Cruise control, wireless phone charging, six airbags, ABS with EBD, hill assist, electronic stability control (ESC), tyre pressure monitoring system (TPMS), and ISOFIX child seat mounts.

14. Hyundai Exter

This best car in low price that provides the compact proportions of a hatchback, but with the added flexibility of an SUV form factor. It is loaded with a variety of features and available in multiple variants, available in manual and automatic transmissions, making it easy to deal with heavy traffic situations.

  • Vehicle Type: SUV
  • Key Features: Two-way dash cam, a sunroof, and even paddle shifters for the AMT-equipped variants, Electronic Stability Control (ESC), Hill Assist Control, Rear Parking Sensors & Camera, ISOFIX Child Seat Anchors, Automatic Climate Control, Cruise Control and Keyless Entry and Push Button Start.

15. Citroen C3

On the low-price car list, this quirky-looking hatchback provides a peppy yet fuel-efficient set of engines, rides well, and has good seat cushioning for comfortable journeys. It blends European design with practical features, offering a unique alternative in the compact car segment.

  • Vehicle Type: Hatchback
  • Key Features: 10.25-inch infotainment screen, Wireless Android Auto and Apple CarPlay, Mobile dock with wire organiser, ABS with EBD, Rear Parking Sensors, ISOFIX Child Seat Mounts and High Ground Clearance for Better Road Handling.

16. Tata Punch

This compact SUV features a Global NCAP rating of 5 stars, valuing safety while providing an attractive design with a comfortable ride. It is a popular choice to consider among first-time buyers and city drivers.

  • Vehicle Type: SUV
  • Key Features: Digital Instrument Cluster, Voice-Assisted Sunroof, 6-Speaker Sound System, Connected Car Tech via e-SIM, ABS with EBD, Rear Parking Camera & Sensors, Rain-Sensing Wipers & Auto Headlamps and iTPMS (Intelligent Tire Pressure Monitoring System).

Now, with the list above, we have made it easy for you to check out the perfect low-cost cars in India that offer a range of features and styles to suit your needs. So, go ahead and make your choice with versatile options—be it electric options like Strom Motors R3 and PMV EaS E, compact SUVs like Hyundai Exter and Tata Punch, or the iconic Maruti Suzuki models.

Key Takeaways

Choosing a budget-friendly car in India in 2025 means you don’t have to compromise on quality or features, with options like hatchbacks, electric vehicles, and compact SUVs. Whether you’re a first-time buyer or looking for an eco-friendly ride, there’s a perfect low-cost car for you. Protect your investment by getting a comprehensive car insurance policy from Coverfox.

Also Read:

Top 11 Car Companies in India

20 Best Smallest Cars in India

Best 12 Hyundai Cars in India for Style, Comfort, and Efficiency

Frequently Asked Questions

Which is the cheapest car in India in 2025?

In 2025, the best car in low price stands to be the Bajaj Qute RE60 with a starting price of ₹3.61 lakh.

Which is the best small car for fuel efficiency?

The most cheapest car in India with good fuel efficiency is the Maruti Suzuki Celerio.

Are there any cheap electric cars available in India?

Yes, there are. Models like the Strom Motors R3, PMV EaS E are good budget-friendly electric options to consider.

Which car has the best safety features in the budget segment?

Models like the Tata Tiago, Tata Punch and Hyundai Grand i10 Nios can be considered as suitable choices for the safest budget cars.

Is car insurance mandatory in India?

Yes, purchasing a third-party car insurance policy is made legally mandatory to drive on Indian roads as per the Motor Vehicles Act, 1988.

What is the best car for city driving on a low budget?

The best low-budget cars in India for city driving can be the Maruti Suzuki Alto K10, Renault KWID, and Tata Tiago models.

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