Alto’s 10-Year Reign Ends! After GST 2.0, Maruti S-Presso Becomes India’s Cheapest Car

New Delhi (The Uttam Hindu): The recently implemented GST 2.0 reforms in the Indian automobile sector have changed the market dynamics. The direct impact of tax reduction has reflected in car prices, leading to a surprising outcome: Maruti Suzuki’s Alto K10 is no longer India’s cheapest car. This title now goes to Maruti’s mini-SUV-styled S-Presso.

With GST 2.0, taxes on small petrol cars have dropped from 28% to 18%, and cess has also been removed. As a result, the starting price of the Maruti S-Presso is now just ₹3.50 lakh. Meanwhile, the Alto K10, which held the title of the cheapest car for the past decade, now starts at ₹3.70 lakh.

Another major factor behind this shift is the government’s new 6-airbag rule. Maruti updated the Alto K10 and Celerio with six airbags, increasing their costs. The S-Presso, on the other hand, currently comes with two airbags, allowing the company to keep its price significantly lower.

Interestingly, India’s cheapest car is now not a traditional hatchback but a mini-SUV-styled vehicle. The S-Presso’s taller stance, boxy design, and strong road presence make it extremely popular among first-time car buyers, especially those upgrading from two-wheelers. The combination of low price and attractive design has made the S-Presso the new king of the budget car segment.