Maruti Suzuki S-Presso is now India’s cheapest car

Maruti Suzuki’s latest price cuts in response to India’s GST 2.0 overhaul have led to the S-Presso now undercutting the Alto to become the cheapest car on sale in India, starting at just Rs 3.50 lakh, ex-showroom. This positioning (below the Alto K10) is made possible due to the fact that the S-Presso did not see the safety upgrade that Maruti Suzuki rolled out recently across its entry-level cars. It, thus, carries on with 2 airbags, unlike the Alto K10 and Celerio, which now get 6 airbags as standard. This significant repositioning is not just about aggressive pricing, but also about Maruti’s strategy to recast the SUV-styled S-Presso as the new price-accessible alternative for entry-level buyers at a time when the entry-level segment itself faces intense pressure.

The GST 2.0 impact: S-Presso vs Alto

For the first time in decades, small car excise duties have dropped sharply – from 28 percent to 18 percent GST for sub-4-metre petrol cars, with comprehensive cess removal. This is the largest downward revision in decades and marks a break from the norm where taxes only went up.

Maruti’s post-GST price revision sees the S-Presso receiving the biggest absolute and percentage price cut – up to Rs. 1.2 lakh on select variants, bringing its base price to Rs 3.50 lakh. The Alto, which laid stake to that claim for over a decade, now starts at Rs 3.70 lakh.

An “SUV” now the cheapest car

It’s historic – and revealing – that the cheapest car now boasts a high-riding crossover/SUV façade, signalling a shift in buyer preferences. Although the S-Presso’s architecture and engineering is more hatchback than SUV, Maruti Suzuki is leveraging its stance to attract two-wheeler upgraders and younger buyers who want road presence along with being price sensitive. However, it remains to be seen whether the S-Presso, with its rather oddball design, can entice new buyers with its huge price cut.