Cheapest Cars in the World: An Ultimate Guide

The introduction of new technologies makes a new car a better option for individuals, but buying a car without every tech update is not a game everyone can play. But you don’t have to always compromise as many manufacturers launch cars that can be a perfect pick for a person on a tight budget. Many low-cost models are equipped with features like blind-spot monitoring and Apple CarPlay and Android Auto that are not available in older, more expensive automobiles. The base price of each model is included in the list of the most reasonably priced new automobiles. 

Let’s look at some of the cheapest cars in the world. 

Nissan Versa

With the exception of fuel efficiency, the Nissan Versa is more affordable than the Mirage. As market trends become more expensive, it is still the only affordable subcompact car available, despite being less expensive than the discontinued Kia Rio. The Versa provides a smooth ride with plenty of storage room, and its 1.6-liter naturally aspirated inline-four engine generates 122 horsepower. The cabin may have problems with speed and road noise, though. The Versa is a good choice for anyone searching for a cost-effective automobile despite these problems because of its excellent safety ratings and lowest starting price.

• Current status: The Versa remains one of the world’s cheapest sedans, but the manual‐transmission version was discontinued for 2025 and the full model is expected to be phased out by 2026.

• Prices: The 2025 Versa S with manual starts at US $18,330, while CVT versions and trims go up to $21,190–$22,330 MSRP.

• Engine/transmission: 1.6 L inline‑4, ~122 hp. Manual is 5‑speed, other trims use CVT 

Learn more about NCAP vehicle safety ratings in India to understand why safety is so crucial for budget cars.

Mitsubishi Mirage

The Mitsubishi Mirage, currently the second-cheapest car on the market, ranks at the top of the cheapest automobile podium because of the reason it doesn’t include accessories like a tonneau cover. Even with its low price, the Mirage is a huge negative because of its subpar driving dynamics, safety, and performance, even though it weighs half as much as the average 2024 car.

If you’re looking to buy a budget-friendly car, knowing the pros and cons of each feature, like CVT transmission benefits, can be helpful.

• Current status: The model wraps up production in 2024; no new 2025 models.

• Prices: 2024 Mirage ES starts around US $15,795; higher trims up to US $17,495.

• Engine/transmission: 1.2 L inline‑3, ~78 hp; continuously variable transmission (CVT) with simulated gear steps.

Kia Forte

The least expensive small automobile is the Kia Forte, which comes with a basic model, an unrefined CVT, and mediocre safety ratings. Despite not being able to propel the base car, the 2.0-liter I-4 engine produces 147 horsepower and boasts great fuel economy. The Forte GT is a fun and reasonably priced option for you which provides a dynamic powertrain and a lot of features at a price below most competitors.

• 2025 Kia K4 replaces Forte: starting price US $23,165 for LX trim up to ~US $29,265 for GT‑Line Turbo.
  Engine/transmission:

• LX/GT trims: 2.0 L inline‑4, ~147 hp; Intelligent Variable Transmission (iVT) CVT

• Turbo trims: 1.6 L turbo‑4, ~201 hp; paired with 7-speed dual-clutch automatic (7DCT)

Hyundai Elantra 

The Hyundai Elantra effortlessly trades blows with the Civic and Corolla as equals, for less, and is perhaps one of the greatest cars ever made. The Elantra is spacious and economical, and a 2022 IIHS Top Safety Pick, receives a makeover for the 2024 model year and is still the greatest value option in the small vehicle market. Compared to competitors in the same price range, the standard Elantra, with its 2.0-liter inline-four engine that generates 147 horsepower and CVT, offers a number of feature benefits. As you move up the trim ladder, this benefit persists, with the high-performing Elantra N outperforming some sport compacts that cost far more.

If you’re interested in similar options in India, you may also want to look at the best affordable sedans with comparable safety and value.

• Prices: U.S. MSRP ranges from US $21,000 (SE) to US $32,000 (Elantra N).
• Engine/transmission:

A: SE/SEL: 2.0 L inline‑4, ~147 hp; Intelligent Variable Transmission (IVT)

B: Sport/N/Fastback N: 1.6 L turbo‑4; Sport models use 7-speed DCT, Elantra N offers 8-speed wet dual‑clutch and 6-speed manual options

Volkswagen Jetta

A compact automobile with a straightforward design and decent fuel economy is the Volkswagen Jetta. Still, it seems cheaply priced, the manual transmission isn’t engaging, and the ride and handling aren’t perfect. Faster and more fuel-efficient than its competitors, the standard Jetta boasts a 1.5-liter turbocharged I-4 engine that produces 158 horsepower.

• Prices: U.S. lineup ranges from US $21,995 (S) to US $29,995 (GLI Autobahn).
• Engine/transmission:

A: S/SE/Sport: 1.5 L turbo‑4, ~158 hp; 6-speed manual or 8-speed automatic

B: GLI: 2.0 L turbo‑4, ~228 hp; 6-speed manual or 7-speed DSG

Toyota Corolla

A popular compact car that blends cost and style is the Toyota Corolla. It has good safety ratings, and a spacious cabin, and is offered in sedan or hatchback body types. Its driving performance and interior materials are inferior to those of the Civic, though. Because of its lower weight and higher horsepower of 2.0 liter I-4 coupled with a CVT, the Corolla is known for being among the best cars for long-distance driving in India, with solid reliability.

• Prices: MSRP in the U.S. ranges from US $21,000 (L/LE) to US $28,000+ (XSE Hybrid).
• Engine/transmission:

A: Gas sedan: 2.0 L inline‑4, ~169 hp; Continuously Variable Transmission (CVT)

B: Hatchback/Hybrids: 1.8 L hybrid and 2.0 L hybrid options; CVT standard

Subaru Impreza 

With all-wheel drive and excellent handling, the Subaru Impreza is a sporty car. Its CVT gearbox isn’t as sporty as it could be, and the standard 2.0-liter normally aspirated flat-four engine produces 152 horsepower, which might be a little slower. The Impreza’s personality outshines its appearance, even with its well-organized chassis and suspension.

• Prices: MSRP from US $19,895 (Base) to US $30,995 (Sport trim with options).
  Engine/transmission: 2.0 L flat‑4, ~152 hp; Lineartronic CVT (6-speed simulated manual mode available)

Mazda 3 

The Mazda 3 is a stylish five-passenger car. It has a powerful 2.5-liter naturally aspirated inline-four engine that produces 191 horsepower. The Mazda 3’s all-wheel-drive system and powerful engine make it an impressive rival in a competitive sector, even with its cramped back seating caused by its attractive design. The vehicle stands out because of its all-wheel-drive system and overall performance.

• Prices: MSRP spans US $23,495 (Sedan base) to US $35,445 (Turbo AWD Premium Plus).
• Engine/transmission:

A: 2.0 L inline‑4, ~155 hp; 6-speed manual or 6-speed automatic

B: 2.5 L Turbo: ~250–274 hp with AWD; mated exclusively to 6-speed automatic with manual shift mode

While not all vehicles in the world cheapest car list are still in production, they reflect a fascinating trend in automotive design—minimalist, efficient, and built to serve a mass audience. Even among the most cheapest cars in the world, some offered surprising features like AC, power windows, and safety ratings.

More Ultra‑Budget Popular Models Globally

Apart from the affordable sedans and hatchbacks already listed, several ultra-low-budget vehicles are popular in emerging and cost-sensitive markets. These models prioritize essential functionality, reliability, and running costs—often making them ideal for first-time buyers or budget-conscious families.

Conclusion 

As a result of the current boom of new models in every market sector, buyers in India are presented with an incredible (if occasionally overwhelming) array of options. Nevertheless, automakers continue to produce some really capable cars that are reasonably priced, useful, feature-rich, and economical all at once, which is fantastic for consumers wishing to upgrade to their first automobile.

Buy cars at the best prices at OLX India, the largest marketplace for secondhand and used items in India. You can find great deals on secondhand cars—see our guide to buying a used car to make the most of your purchase.

Frequently Asked Questions

Which brand manufactures the least expensive car? 

Right now in India, the Bajaj Qute is the most affordable automobile. Starting at INR 3.60 lakh, it is. 

What features can I expect in budget-friendly cars?

Budget-friendly cars often include essentials like a touch-screen infotainment system, Apple CarPlay/Android Auto, good fuel efficiency, and safety features like blind-spot monitoring and stability control

What is the cheapest car ever produced?

The 2008 Indian automobile known as the Tata Nano was created with the goal of being the most affordable vehicle ever produced. Despite costing around 1 lakh rupees, the automobile nevertheless has everything you need for safe driving.

Which Indian state has the priciest automobiles? 

The most premium vehicles registered in Maharashtra state. With almost 94,000 of these vehicles registered in the state to date, Maharashtra tops the list by a significant margin.

 Are compact cars better for city driving?

Yes, compact cars like the Nissan Versa and Hyundai Elantra are ideal for city driving due to their smaller size, easy maneuverability, and better fuel efficienc