Top 10 Cheapest Cars in India with Best Mileage in 2026

The Maruti S-Presso is the cheapest car in India at Rs.3.50 lakh ex-showroom, offering entry-level affordability with excellent fuel efficiency. BankBazaar compares the top 10 most affordable cars with prices, mileage, and specifications to help first-time buyers. 

Updated On - 16 Jul 2026
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Listed below are the 10 cheapest cars that can be purchased in India that are light on the pocket while delivering performance at the same time:

Cheapest Car in India
Cheapest Car in India

Car

Price (Ex-Showroom Delhi) 

Mileage

Maruti Alto K10

Rs.4.23 lakh onwards

Up to 24.9 kilometres per litre

Maruti S-Presso 

Rs.4.26 lakh onwards

Up to 25.3 kilometres per litre

Renault Kwid

Rs.4.70 lakh onwards

Up to 22.3 kilometres per litre

Tata Tiago

Rs.5.00 lakh onwards

Up to 20.09 kilometres per litre 

Maruti Eeco

Rs.5.44 lakh onwards

Up to 19.71 kilometres per litre

Maruti Celerio

Rs.5.64 lakh onwards

Up to 26.68 kilometres per litre

Maruti Wagon R 

Rs.5.64 lakh onwards

Up to 25.19 kilometres per litre

Maruti Ignis

Rs.5.85 lakh onwards

Up to 20.89 kilometres per litre

Hyundai Grand i10 Nios 

Rs.5.98 lakh onwards 

 Up to 18 kilometres per litre

Tata Punch

Rs.6.00 lakh onwards 

Up to 20.09 kilometres per litre

Maruti Alto K10

  • As one of the most popular choices in the entry-level segment, the Maruti Alto K10 combines affordability with practicality.
  • Powered by a peppy 1-litre petrol engine, it delivers excellent fuel efficiency of up to 24.9 kilometres per litre. 
  • With its compact dimensions and nimble handling, navigating through city traffic is a breeze.
  • Key features include a stylish exterior design, spacious cabin, and standard safety features such as dual airbags and ABS. 

Maruti S-Presso

  • With its bold styling and high seating position, the Maruti S-Presso exudes confidence on the road.
  • Equipped with a 1.0-litre petrol engine, it delivers impressive mileage of up to 32.73 kilometres per kilogram, making it one of the most fuel-efficient cars in its segment.
  • The S-Presso offers a spacious cabin, SmartPlay Studio infotainment system, and standard safety features like dual airbags and rear parking sensors. 
  • The S-Presso comes with a 5-year or 100,000-kilometre warranty and meets BS-VI emission standards. 

Renault KWID

  • The Renault KWID stands out with its SUV-inspired design and generous cabin space.
  • Available with two petrol engine options (0.8-litre and 1.0-litre), it offers a balanced mix of performance and fuel efficiency, with mileage of up to 22.3 kilometres per litre.
  • The KWID boasts segment-leading boot space and a touchscreen infotainment system, making it a compelling choice in its price range. 

Tata Tiago

  • The Tata Tiago combines striking design with robust build quality, making it a top contender in the budget hatchback segment.
  • Powered by a 1.2-litre petrol engine, it offers a perfect blend of performance and efficiency, with mileage of up to 20.09 kilometres per litre.
  • The Tiago boasts a feature-rich interior, including a Harman audio system, dual-tone interior scheme, and segment-leading safety features such as dual airbags and ABS with EBD.
  • The Tata Tiago holds a 4-star Global NCAP rating for adult occupant protection, demonstrating strong safety credentials. 

Maruti Eeco

  • Powered by a 1.2-litre engine, the Maruti Eeco is available in both CNG and petrol models.
  • The car only comes with a manual transmission.
  • The four-wheeler is available in five colours.
  • The CNG variant of the Eeco gives a mileage of 26.78 kilomteres per kilogram.
  • The car is available in both 5-seater and 6-seater variants.

Maruti Celerio 

  • The Maruti Celerio is powered by a 1.0-litre engine and is available in both petrol and CNG engine variants.
  • Depending on the model, the features of the four-wheeler will vary.
  • The car is available in both manual and automatic models.
  • The CNG variant of the car gives a mileage of 34.43 kilometres per kilogram.

Maruti Wagon R 

  • Renowned for its tall-boy design and spacious interiors, the Maruti Wagon R is a versatile choice for Indian families.
  • Available with two petrol engine options (1.0-litre and 1.2-litre), it offers mileage of up to 25.19 kilometres per litre, making it one of the most fuel-efficient cars in its segment.
  • The Wagon R features a touchscreen infotainment system, advanced safety features, and ample storage space, making it ideal for both city and highway driving.

Maruti Ignis

  • The Maruti Ignis is available in a petrol variant and comes with both manual and automatic transmissions.
  • The different colours that the car is available in are Nexa Blue, Turquoise Blue, Silky Silver, Lucent Orange, Pearl Midnight Black, Nexa Blue with Silver Roof, Lucent Orange with Black Roof, Pearl Arctic White, Glistering Grey, and Nexa Blue with Black Roof.
  • Depending on the model, the features of the four-wheeler will vary.

Hyundai Grand i10 Nios

  • With its premium interiors and touchscreen infotainment system, it redefines comfort and convenience.
  • Powered by a 1.2-litre petrol engine, it delivers a mileage of up to 18 kilometres per litre, while rear AC vents enhance passenger comfort.

Tata Punch

  • The Tata Punch is the latest addition to the affordable car segment.
  • With its rugged design and powerful performance, it's set to redefine the compact SUV category.
  • Equipped with a 1.2-litre petrol engine, it offers a mileage of up to 20.09 kilometres per litre.
  • Its spacious interiors, high ground clearance, and advanced safety features make it an enticing option for adventure seekers.
  • Car loans for the Tata Punch are available from banks at interest rates starting from 8% p.a., with flexible tenure options. 

FAQs on the Top 10 Cheapest Cars in India

  1. What are the top 10 cheapest cars in India in 2026?

    The cheapest cars in India in 2026 range from the Maruti S-Presso at Rs.3.50 lakh to the Tata Punch at Rs.5.59 lakh ex-showroom. This list includes hatchbacks, vans, and compact SUVs offering excellent value for money with practical features. 

  2. Which is the cheapest car in India in 2026?

    The Maruti S-Presso is the cheapest car in India at Rs.3.50 lakh ex-showroom. It combines exceptional affordability with 25.3 km/l petrol mileage and practical features for first-time buyers. 

  3. Which cheapest car offers the best fuel mileage?

    The Maruti Celerio offers the best mileage at 26.68 kilometres per litre for petrol and 34.43 km/kg for CNG. The S-Presso delivers 25.3 km/l petrol mileage. 

  4. What safety features do cheapest cars include?

    Budget cars include dual airbags, ABS with EBD, and reinforced structures. The Tata Tiago holds a 4-star Global NCAP rating, proving affordability and safety can coexist. 

  5. Are CNG options available for budget cars?

    Yes, the Maruti Alto K10, S-Presso, Celerio, and Eeco offer CNG variants delivering superior fuel economy at higher purchase cost. 

  6. Which budget car is best for families?

    The Maruti Wagon R is ideal with spacious interiors for five passengers at Rs.4.99 lakh ex-showroom. The Eeco offers optional 6-seater configuration. 

  7. Do budget cars offer automatic transmission?

    Yes, the Maruti Alto K10, S-Presso, Renault Kwid, and Tata Tiago offer 5-speed AMT automatic transmission options alongside manual variants. 

  8. Which budget car has the best infotainment?

    The Renault Kwid and Maruti models feature touchscreen systems with Apple CarPlay and Android Auto. The Tata Tiago includes an 8-speaker Harman audio system. 

  9. How do I choose the right budget car?

    Prioritise affordability (S-Presso), fuel economy (Celerio), space (Wagon R), or SUV appeal (Tata Punch). Compare mileage, features, safety ratings, and warranty terms. 

  10. Are budget cars economical to maintain?

    Yes, budget cars feature simple engines with available spare parts and widespread service centres. Lower maintenance costs make them economical long-term. 

  11. Can I get financing for budget cars?

    Yes, banks offer car loans from 8% p.a. with 10-15% down payment. Monthly EMI ranges from Rs.7,000-Rs.12,000 depending on tenure. 

  12. What is the resale value of budget cars?

    Budget cars, especially Maruti models, retain 60-70% of original value after 3 years due to high demand and extensive dealer networks. 

  13. What warranty do budget cars offer?

    Most manufacturers provide 5-year or 100,000-kilometre warranty on budget cars. Extended warranties are available at additional cost. 

  14. Which is best for first-time car buyers?

    The Maruti Alto K10 and Tata Tiago are ideal, offering easy handling, light controls, and responsive performance in city traffic. 

  15. How much is car insurance for budget cars?

    Annual premiums range from Rs.3,000-Rs.6,000 for third-party cover and Rs.7,000-Rs.12,000 for comprehensive policies. 

  16. Are budget cars suitable for highway driving?

    Budget cars like the Wagon R and Tiago are highway-capable with reliable engineering and good fuel efficiency for occasional long-distance travel. 

  17. Which budget car has maximum boot space?

    The Maruti Eeco offers 540 litres of boot space for utility and cargo. The Renault Kwid provides segment-leading space. 

  18. Do budget cars meet emission standards?

    All budget cars meet BS-VI emission standards, complying with latest Indian environmental regulations without costly upgrades. 

  19. Can I customise budget cars?

    Yes, Maruti and Renault offer factory-approved customisation with colour, trim, and accessory options without voiding warranty. 

  20. How has GST 2.0 impacted budget car prices?

    Following GST 2.0 in 2026, prices became more affordable. S-Presso is now Rs.3.50 lakh and Alto K10 at Rs.3.70 lakh ex-showroom. 

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