Best Cars Under 5 Lakhs in India: Top Affordable Models (2025)

Buying a cars under 5 lakhs in India makes a lot of sense for hard-pressed buyers who want to balance their budget with affordability while providing a minimum of must-have features in the vehicle. Here is a list of 5 such cars which will be expensive in the future but will return value with great performance and comfort. This article lists a few of the top budget cars for low of off ₹5 lakh along with their specifications and features to help you choose right one for yourself.

Best Cars Under 5 Lakhs in India

The small and compact hatchback Maruti Suzuki Alto K10

So much so that it is a staple for India’s first-time buyers, the Maruti Suzuki Alto K10. It has an introductory price of ₹3.99 lakh (ex-showroom), powered by a 1.0-liter K-Series petrol motor with specifications of 66 bhp and 89 Nm of torque. Known for its fuel efficiency, the petrol version of the Alto K10 will give you around 24.39 kmpl, while the CNG variant can deliver around 33.85 km/kg. Its small size allows it to navigate urban traffic effortlessly, and it is equipped with dual airbags and ABS with EBD for safety.

Renault Kwid: Fully Loaded Hatchback

Renault Kwid: Renowned for its bug-eye inspired look with a modern design tailored with SUV like features. It is priced at ₹4.69 lakh (ex-showroom) and powered by a 1.0-litre naturally aspirated petrol that makes 68 PS and 91 Nm of torque. The Kwid has a mileage figure of approximately 22.3 kmpl. It is a looker, practical as well with an 8-inch touchscreen infotainment system with Android Auto and Apple CarPlay, dual airbags, and a large 279-liter boot, aimed at urban commuters.

All the details on the Maruti Suzuki S-Presso : Indian Auto.RED

The Maruti Suzuki S-Presso offers an SUV-like high seating position but combines it with the compactness of a hatchback. Starting at ₹4.26 lakh (ex-showroom), the engine on these cars is a 1.0-liter K-Series petrol motor found on the Alto K10, producing 66 bhp and 89 Nm of torque. Petrol and CNG variant of S-Presso will return a fuel economy of 24.7 and 25.3 kmpl, respectively. With its striking looks and features such as the SmartPlay infotainment system and dual airbags, it is a good option for anyone looking for a budget mini-SUV.

Also Read: Top 5 Cars in India with Best Mileage, Performance & Price

Road Trip Companion: Safe and Feature-rich Hatchback — Tata Tiago

The Tata Tiago can impress with its solid build quality and safety features. Available with a starting price of ₹4.99 lakh (ex-showroom), this product is driven by a 1.2-litre Revotron petrol engine generating 84.8 bhp of power alongside 113 Nm of torque. Petrol variant mileage of the Tiago is around 19 kmpl while the CNG option accounts for 28.06 km/kg. With a 4-star Global NCAP safety rating, it comes with the Harman Kardon infotainment system, dual airbags, ABS with EBD among others, making it safe and a value-for-money option in this segment.

The Celerio by Maruti Suzuki: efficient and roomier hatchback

It is particularly fuel-efficient and quite spacious in the interior. It is powered by a 1.0-liter K-Series petrol engine that produces 66 bhp and 89 Nm of torque and is available at a starting price of ₹4.99 lakh (ex-showroom). Suzuki Celerio: If fuel economy is important to you, the Suzuki Celerio is your best bet, as it is the most economical car on this list and is equipped with dual airbags (for the driver and front passenger), ABS with EBD and a roomy cabin that make it ideal for families looking for an affordable hatchback.

Conclusion

Choosing the right car under ₹5 lakh requires some compromises on aspects like fuel efficiency, safety, features, and personal preferences. The models mentioned above provide options for a variety of needs, including small city cars and mini-SUVs. However, by evaluating each against your unique requirements, you’ll be able to know which budget car meets your expectations in 2025.

Disclaimer: The information provided in this article is for general informational purposes only. Specifications, features and prices are subject to change. Do check with certified dealers or original sites before buying. We are not liable for any errors, financial decisions or results based on the information provided.

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