This Hatchback Now Replaces Maruti Alto as the Most Affordable Car After GST Cut
India’s small car market has just seen a big shake-up. Thanks to the GST 2.0 tax reforms, a new Maruti Suzuki hatchback has slipped past the Alto to claim the title of the country’s most affordable car. The pricing twist comes as a surprise to many, considering Alto’s long-standing dominance at the entry level.
Maruti Suzuki’s S-Presso has now overtaken the Alto K10 to become the most affordable car in India, with prices starting at Rs 3.50 lakh (ex-showroom). In comparison, the Alto K10 now starts at Rs 3.70 lakh.
The change is driven by a mix of sharp tax reductions and product positioning. GST on sub-4-metre petrol cars has been reduced from 28% to 18%, with the additional cess scrapped. At the same time, Maruti Suzuki has kept the S-Presso free of the six-airbag package that is now standard on the Alto K10 and Celerio, helping keep costs low.
The S-Presso is powered by Maruti’s tried-and-tested 1.0-litre K10C petrol engine that produces 67bhp and 89Nm. Buyers can choose between a 5-speed manual and a 5-speed AMT (AGS), while a CNG option is also on offer. Fuel efficiency is another strong point, rated at 24.76 kmpl for the manual and 25.30 kmpl for the AMT.
On the features front, higher trims like the VXi+ get electrically adjustable ORVMs, while AMT variants include ESP and hill-hold assist.
Alongside the S-Presso, other Maruti Suzuki models have also become cheaper after the GST cut. The Baleno, Swift, and Dzire are now up to Rs 87,700 less expensive, while SUVs such as the Brezza and Fronx have seen reductions of more than Rs 1.12 lakh. The Grand Vitara is cheaper by Rs 1.07 lakh, and the Jimny by Rs 51,900. In the MPV range, the Ertiga, XL6, and Invicto have also seen price cuts. Maruti has even introduced an all-new SUV, the Victoris, starting at Rs 10.50 lakh.
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Maruti Suzuki has said the revised pricing is a limited-time offer, subject to review at the end of this year. Still, the company is optimistic about demand. A spokesperson noted that the passenger car market is expected to bounce back to 6–7% growth in the next fiscal year.
Hatchbacks remain central to Maruti Suzuki’s strategy, especially as millions of two-wheeler owners look to upgrade to their first car. With the Alto having sold 4.6 million units over the years while maintaining the title of the most affordable car and the WagonR holding the crown as India’s best-selling car for four years in a row, the S-Presso’s new positioning strengthens the company’s hold in the entry-level segment.
