Cars that India lost to sub-4m tax policy — Here’s our pick

By Amit Saraswat06 Apr 2025
Credits: Volkswagen, Honda

The sub-4m rule

Introduced in 2006, the sub-4m car segment aimed to promote smaller, fuel-efficient cars. These cars benefit from lower GST cess, making them more affordable than larger vehicles.

Credits: Maruti Suzuki

Cars that we missed out on

Cars like the Volkswagen Golf, new-gen Volkswagen Polo, Honda Jazz etc that measure slightly more than 4 metres in length are not viable for the Indian market, owing to the heavy tax imposition from the government. We share our top 5 picks that we think should have come to India.

Credits: Volkswagen

Volkswagen Polo

With the Polo no longer on sale, we would love to see the new Polo but like other cars in this list, it measures over 4 metres in length. Measuring 4,074mm in length, it is non-complaint to the sub-4m rule.

Credits: Volkswagen

Skoda Fabia

In its third generation, the Fabia has grown bigger, spanning over 4 metres in length, thereby making it irrelevant for India. Think of the new Fabia as the Slavia sedan with the extended boot, it’s that similar.

Credits: Skoda

Renault Clio

It would be interesting to see the Renault Clio in the Indian market as it carries a unique advantage over all of its rivals—a strong-hybrid powertrain. Since that would be too expensive, it also comes with a turbo petrol engine, keeping the fun alive.

Credits: Renault

Jeep Renegade

Measuring more than 4 metres in length but considerably smaller than the C-segment SUVs, the Renegade was found in a weird spot and incapable to fall into either of the categories. Jeep was actively considering the Renegade but it was never launched here.

Credits: Jeep

Honda Jazz

The new Jazz measures just under 4.1 metres, so re-engineering the car to make it fall under 4m wouldn’t be a task. However, only that wouldn’t suffice as the new Jazz comes with a 1.5-litre strong hybrid powertrain, thereby making it non-complaint to the rules

Credits: Honda
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Credits: Volkswagen