Cars under 4 lakhs in India- Hello Everyone, Starting September 22nd, car companies across India have updated their vehicle prices in accordance with the new GST 2.0. This update has significantly reduced the prices of many small cars. This means that those with a budget of ₹3 to ₹4 lakhs will now find it easier to buy a car.
In this post, we’ll show you the top six cars that you can buy at very affordable prices after the new price cut. This entire list has been compiled based on price. The car at number six will be the most expensive on this list, while the car at number one will be the cheapest.
When selecting these cars, we considered not only price but also all important aspects such as engine quality, driving comfort, safety features, after-sales service, and reliability.
Here is List Of Cars under 4 lakhs in India
6. Maruti Suzuki Wagon R

The Wagon R has been one of India’s most reliable and best-selling cars. Remaining the number one selling car for five consecutive years is a significant achievement in itself.
- Engines:
- 1000 cc three-cylinder engine (66 bhp, 89 Nm)
- 1200 cc four-cylinder engine (89 bhp, 113 Nm)
- Mileage: 24 kmpl
- Boot Space: 341 liters
- Safety: 1-star Global NCAP
Price Update:
- Old Price: ₹5,78,000
- New Price: ₹4,98,000
- You Save: ₹80,000
Despite its low safety score, Maruti Suzuki’s after-sales service, silent engine, and strong resale value make the Wagon R a reliable option.
Cars Under 4 Lakhs in India- Maruti Suzuki Wagon R
| Pros | Cons |
|---|---|
| Spacious cabin with 341L boot | 1-star Global NCAP safety rating |
| Multiple engine options | No premium features |
| Strong resale value | Dated design for some buyers |
| Mileage of 24 kmpl | Basic interior in lower variants |
5. Renault Kwid

The Renault Kwid is the smallest car from Renault, yet its smart design gives it a mini SUV stance.
- Engine: 1000 cc three-cylinder engine (67 bhp, 91 Nm)
- Mileage: 24 kmpl
- Boot Space: 279 liters
- Ground Clearance: 184 mm (best in segment)
- Safety: 1-star Global NCAP
Price Update:
- Old Price: ₹5,76,000
- New Price: ₹4,70,000
- You Save: ₹1,06,000
Features include six airbags, ESP, traction control, hill start assist, rear parking sensors, power windows, and keyless entry.
Cars Under 4 Lakhs in India- Renault Kwid
| Pros | Cons |
|---|---|
| SUV-like stance, stylish design | Limited highway performance |
| Best-in-segment ground clearance (184 mm) | 1-star Global NCAP safety rating |
| Loaded with features (ESP, hill assist, 6 airbags) | Smaller boot than Wagon R |
| Mileage of 24 kmpl | Cabin space is average |
4. Maruti Suzuki Celerio

The Celerio is one of Maruti’s most underrated cars, offering practicality and excellent mileage.
- Engine: 1000 cc three-cylinder engine
- Mileage: 25 kmpl (best in segment)
- Boot Space: 313 liters
- Ground Clearance: 170 mm
- Safety: 0-star Global NCAP
Price Update:
- Old Price: ₹5,64,000
- New Price: ₹4,69,000
- You Save: ₹95,000
Features: six airbags, ESP, idle start-stop, and reverse parking sensors.
Cars Under 4 Lakhs in India- Maruti Suzuki Celerio
| Pros | Cons |
|---|---|
| Best-in-segment mileage (25 kmpl) | 0-star Global NCAP safety rating |
| Practical interiors with 313L boot | Noisy 3-cylinder engine at high speeds |
| Compact yet spacious | Styling may not appeal to all |
| Features like idle start-stop & ESP | Ride quality is average |
3. Tata Tiago

The Tata Tiago is stylish, fun to drive, and a leader in safety.
- Engine: 1000 cc three-cylinder engine (84 bhp, 113 Nm)
- Mileage: 19 kmpl (claimed)
- Boot Space: 242 liters
- Ground Clearance: 170 mm
- Safety: 4-star Global NCAP (best on this list)
Price Update:
- Old Price: ₹4,99,000
- New Price: ₹4,57,000
- You Save: ₹42,000
Cars Under 4 Lakhs in India- Tata Tiago
| Pros | Cons |
|---|---|
| Safest in segment (4-star Global NCAP) | Mileage lower (19 kmpl claimed) |
| Stylish design & fun to drive | Boot space only 242L |
| Premium build quality | Rear seat slightly tight for 3 adults |
| Strong engine (84 bhp, 113 Nm) | High-speed refinement could be better |
2. Maruti Alto K10

One of India’s most iconic budget cars, the Alto K10 continues to dominate with reliability.
- Engine: 1000 cc three-cylinder engine
- Mileage: 24 kmpl
- Boot Space: 214 liters
- Safety: 2-star Global NCAP
Price Update:
- Old Price: ₹5,20,000
- New Price: ₹3,99,000
- You Save: ₹1,21,000
This is one of the biggest savings in the segment, making it a strong budget pick.
One of India’s most iconic budget cars, the Alto K10 continues to dominate with reliability.
- Engine: 1000 cc three-cylinder engine
- Mileage: 24 kmpl
- Boot Space: 214 liters
- Safety: 2-star Global NCAP
Price Update:
- Old Price: ₹5,20,000
- New Price: ₹3,99,000
- You Save: ₹1,21,000
This is one of the biggest savings in the segment, making it a strong budget pick.
Cars Under 4 Lakhs in India- Maruti Alto K10
| Pros | Cons |
|---|---|
| Cheapest Maruti after GST 2.0 | Small boot (214L) |
| Reliable & fuel-efficient (24 kmpl) | Safety rating only 2-star |
| Easy to maintain with wide service network | Basic feature list |
| Huge price cut (₹1.21 lakh) | Interior space limited |
1. Maruti Suzuki S-Presso

The most budget-friendly car on the list, the S-Presso offers an SUV-like stance at an unbeatable price.
- Engine: Same as Alto K10
- Mileage: ~24 kmpl
- Boot Space: 240 liters
- Ground Clearance: 20 mm higher than Alto K10
- Safety: Dual airbags, ESP
Price Update:
- Old Price: ₹4,99,000
- New Price: ₹3,80,000
- You Save: ₹1,19,000
Cars Under 4 Lakhs in India- Maruti Suzuki S-Presso
| Pros | Cons |
|---|---|
| SUV-like stance with high ground clearance | Polarizing design (love/hate looks) |
| Cheapest car after GST 2.0 (₹3.80 lakh) | Limited safety features |
| Trusted Maruti engine & service | Not ideal for highway use |
| Compact & city-friendly | Small cabin for tall passengers |
Overall
- Budget Buyers: Go for Maruti Alto K10 or S-Presso
- Safety Seekers: Tata Tiago is the best pick
- Space & Practicality: Maruti Wagon R wins
- Style Lovers: Renault Kwid offers SUV-like looks at low cost
Frequently Asked Questions (FAQ) – Affordable Cars After GST 2.0
1. Which is the cheapest car in India after GST 2.0?
The Maruti Suzuki S-Presso is now the cheapest car, priced at just ₹3.80 lakh (ex-showroom).
2. Which car is the safest under ₹4 lakh?
The Tata Tiago is the safest, with a 4-star Global NCAP rating.
3. Which car offers the best mileage?
The Maruti Suzuki Celerio offers the highest mileage at 25 kmpl, making it the most fuel-efficient car in this segment.
4. Which car gives the highest savings after GST 2.0?
The Maruti Alto K10 saw a price cut of ₹1.21 lakh, offering the biggest savings.
5. Which car has the largest boot space among these?
The Maruti Wagon R leads with 341 liters of boot space, ideal for families.


