Now you have to talk that the prices of small hatchback cars have fallen in a big way after GST 2.0 came into force in September 2025 in the Indian car market. Previously cars that were taxed around 29–31% are now the same models in the new 18% GST slab.
This simply means that popular hatchback cars like the Alto K10, Wagon R, Tiago, Hyundai Grand i10 and i20 have now become cheaper than ever. Cars with smaller sizes and lower engine capacity have received enormous relief under this new tax structure, increasing demand for budget-friendly options.
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Maruti Suzuki Alto K10
The Maruti Alto K10 is the most preferred entry-level hatchback car in the Indian market. Due to its compact size and 1.0-liter petrol engine, it fits perfectly in the government’s new “small car ” definition. After the GST cut, the price of this car has dropped by ₹1.08 lakhs. With this new price point, the Alto K10 has become an even more attractive option for first time car buyers.
Maruti Suzuki Wagon R
However, Wagon R has long been a reliable and family-friendly hatchback for Indian families. Its 1.0-liter and 1.2-liter petrol engines now fall into the 18% GST slab. As a result, the price of this popular model has decreased by about ₹80,000. Where long body design, good space and easy operation in city driving make it excellent in budget and family terms.
Tata Tiago
Tata Tiago is known for its strong build quality and safety features. After the GST cut, the price of this car has decreased by about ₹75,000. This change makes Tiago even more competitive in the small car segment. Now this model is proving to be extremely attractive for new buyers and shoppers in the festive season.
Hyundai Grand i10 Nios
Also tell you the Hyundai Grand i10 Nios is known for its feature rich segment. The X-showroom price of this car declined by ₹74,000 after the GST cut. This reduction has been applied in many petrol and CNG variants. This car has become a great option for urban commuter and small families, which is also budget friendly with style and comfort.
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Hyundai i20
The Hyundai i20 is a great choice in the premium hatchback segment. Where some variants that fall into the new GST slab of a small car have reduced their price by ₹97,000. This means that people looking for premium hatchbacks can now make more affordable choices. The i20 with its space, premium integrators and features is still one of the best options in the Indian market.