The Affordable SUV Wave in India
The Indian SUV market is hotter than ever, and automakers are racing to capture buyers looking for feature-packed, budget-friendly compact SUVs.
Thank you for reading this post, don't forget to subscribe!In 2025, several major brands — including Maruti Suzuki, Tata Motors, Hyundai, Kia, and Mahindra — are gearing up to launch new affordable SUVs that combine style, practicality, and performance without breaking the bank.
These SUVs will sit in the ₹7 lakh to ₹12 lakh price range, targeting first-time buyers and urban commuters who want the SUV experience with great fuel efficiency and modern tech.
Let’s take a look at the top 5 upcoming affordable SUVs in India you should keep your eyes on.
1. Maruti Suzuki Y1K SUV (Based on Fronx Platform)
🔹 Expected Launch: Mid-2025
🔹 Expected Price: ₹7.5 – ₹10 lakh (ex-showroom)
🔹 Engine Options: 1.2L K-Series Petrol / CNG
Maruti Suzuki is developing an all-new entry-level compact SUV, codenamed Y1K, expected to slot below the Fronx.
The upcoming SUV will feature a tall stance, LED DRLs, and bold grille styling inspired by the Grand Vitara. The cabin will share components with the Baleno, including the 7-inch SmartPlay infotainment system, wireless Android Auto/Apple CarPlay, and automatic climate control.
Power will come from Maruti’s reliable 1.2L petrol engine, paired with 5-speed manual and AMT options, and possibly a CNG variant.
Given Maruti’s extensive service network and affordable maintenance, this model could easily become one of the best-selling budget SUVs in India.
2. Tata Nexon CNG – Expanding the Powertrain Lineup
🔹 Expected Launch: Early 2025
🔹 Expected Price: ₹8.5 – ₹11 lakh (ex-showroom)
🔹 Engine: 1.2L Turbo-Petrol with CNG kit
Tata Motors is planning to expand the Nexon lineup by introducing a CNG version, making it one of the first turbocharged CNG SUVs in the country.
The Nexon CNG will retain the same premium interior as the facelifted Nexon — featuring a 10.25-inch touchscreen, two-spoke steering, touch-based HVAC controls, and leatherette seats.
The addition of CNG will appeal to customers looking for low running costs without compromising performance. Expect slightly lower output (around 100 PS), but with significantly improved mileage.
With Tata’s focus on safety (5-star GNCAP rating) and strong build quality, the Nexon CNG could become a top choice among eco-conscious budget SUV buyers.
3. Hyundai Exter CNG & EV Variants
🔹 Expected Launch: CNG – Early 2025 | EV – Late 2025
🔹 Expected Price: ₹7.2 – ₹11 lakh (ex-showroom)
🔹 Powertrain: 1.2L Petrol-CNG / Electric (32 kWh battery pack)
After the success of the Hyundai Exter, the company is preparing to expand its lineup with CNG and all-electric versions.
The Exter CNG will use the same 1.2L petrol engine but tuned for better fuel economy, while the Exter EV will feature a compact battery setup similar to the Tata Punch EV.
Visually, the EV variant will have a closed front grille, aerodynamic alloy wheels, and blue accents. Inside, expect features like:
- Dual 10.25-inch displays
- Sunroof
- Six airbags
- Wireless charger
- Bluelink connected tech
The Hyundai Exter EV is expected to deliver a real-world range of around 300 km, making it one of the most affordable electric SUVs in India.
4. Mahindra XUV200 (Compact SUV Revival)
🔹 Expected Launch: Mid-2025
🔹 Expected Price: ₹8 – ₹11.5 lakh (ex-showroom)
🔹 Engine: 1.2L Turbo-Petrol / 1.5L Diesel
Mahindra is ready to re-enter the sub-4m SUV battle with the XUV200, which will sit below the XUV300 in its lineup.
The XUV200 will carry a bold, boxy design inspired by the XUV700, with vertical LED DRLs, muscular wheel arches, and a signature twin-peaked grille.
Inside, it’s expected to feature a floating touchscreen, digital instrument cluster, and dual-tone interiors.
Mahindra could also offer ADAS (Advanced Driver Assistance Systems) in higher trims — a segment-first feature.
With both petrol and diesel options, strong torque delivery, and 5-star crash safety engineering, the XUV200 could be a game-changer in the affordable SUV market.
5. Kia Clavis Micro SUV
🔹 Expected Launch: Late 2025
🔹 Expected Price: ₹7.8 – ₹10.8 lakh (ex-showroom)
🔹 Engine: 1.2L Petrol / 1.0L Turbo / EV option later
Kia is developing a brand-new micro SUV, codenamed AY or Clavis, aimed directly at models like the Hyundai Exter and Tata Punch.
The Kia Clavis will offer a boxy yet futuristic design, compact dimensions, and a high seating position for urban practicality.
Features likely include:
- Dual-screen dashboard layout
- Ambient lighting
- 360-degree camera
- Connected car technology
- Dual airbags and ESC
An electric version of the Clavis is also expected by late 2026, based on Kia’s flexible EV platform.
Kia’s reputation for quality interiors and feature-rich offerings makes the Clavis one of the most anticipated affordable SUVs for India in 2025.
Comparison Snapshot – Upcoming Affordable SUVs (2025)
| Model | Engine Options | Expected Price | Launch Timeline | Key USP |
|---|---|---|---|---|
| Maruti Y1K | 1.2L Petrol / CNG | ₹7.5–10 L | Mid-2025 | Affordable, Reliable |
| Tata Nexon CNG | 1.2L Turbo + CNG | ₹8.5–11 L | Early 2025 | Powerful & Efficient |
| Hyundai Exter EV | 32 kWh Battery | ₹8–11 L | Late 2025 | EV on Budget |
| Mahindra XUV200 | 1.2L P / 1.5L D | ₹8–11.5 L | Mid-2025 | Safety & Power |
| Kia Clavis | 1.2L / 1.0L Turbo | ₹7.8–10.8 L | Late 2025 | Compact & Premium |
Final Thoughts – SUV Revolution For Budget Buyers
The upcoming wave of affordable SUVs proves that Indian automakers are listening to consumer demand — offering style, safety, and performance at reasonable prices.
From Maruti’s practicality and Tata’s safety to Hyundai’s tech and Mahindra’s power, each brand is pushing boundaries to dominate the compact SUV market.
If you’re planning to buy your first SUV in 2025, this lineup gives you multiple strong options, whether you prefer petrol, CNG, or electric.
These vehicles are not just budget-friendly — they’re future-ready SUVs designed for modern Indian roads and lifestyles.
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