If you are looking to buy a car under ₹5 lakh in India, you’re in the right place. Many people in India prefer budget-friendly cars because they are affordable, fuel-efficient, and easy to maintain. In this article, we will look at the best cars you can buy for ₹5 lakh, along with their features, pros, and cons, to help you make a smart decision.
Why Buy a Car Under ₹5 Lakh?
There are many reasons why a car under ₹5 lakh can be a great choice:
- Affordable Price: These cars are easy on your wallet, both in terms of price and maintenance.
- Good Mileage: Cars in this range are fuel-efficient, which helps you save money on fuel.
- Perfect for City Driving: Most of these cars are small, making them great for driving in crowded cities.
- Low Depreciation: These cars lose their value slower compared to more expensive ones.
Top Cars Under ₹5 Lakh in India (2025)
Here are some of the best cars you can buy for ₹5 lakh:

1. Maruti Suzuki Alto K10 (Price: ₹3.99 lakh – ₹5.83 lakh)
The Alto K10 is one of the most popular cars in India. It is known for being small, fuel-efficient, and easy to maintain.
Features:
- 1.0-litre petrol engine
- 67.1 bhp power
- Mileage: 22.05 km/l
- Safety: Dual airbags, ABS, parking sensors
- Simple interior with a basic music system
Pros:
- Very fuel-efficient
- Low maintenance cost
- Reliable brand with a strong service network
Cons:
- Small interior space
- Basic features compared to some other cars

2. Renault Kwid (Price: ₹4.64 lakh – ₹5.99 lakh)
The Renault Kwid has a stylish design that looks like an SUV, making it stand out in the budget car market.
Features:
- 0.8-litre and 1.0-litre petrol engines
- 53 bhp (0.8-litre) and 67 bhp (1.0-litre) power
- Mileage: 22.3 km/l
- Safety: Dual airbags, ABS, parking sensors
- Features: Touchscreen music system, Apple CarPlay, Android Auto
Pros:
- Modern and stylish look
- High ground clearance for rough roads
- Packed with features
Cons:
- Build quality could be better
- Less space in the back seat

3. Hyundai Santro (Price: ₹4.90 lakh – ₹5.85 lakh)
The Hyundai Santro is a well-known and trusted car in India. It offers a good mix of comfort, style, and features.
Features:
- 1.1-litre petrol engine
- 68 bhp power
- Mileage: 20.3 km/l
- Safety: Dual airbags, ABS, parking sensors
- Features: Touchscreen music system, steering controls
Pros:
- Spacious and comfortable
- Smooth to drive
- Good quality interior
Cons:
- Higher price than some others
- Average ground clearance

4. Tata Tiago (Price: ₹5.20 lakh – ₹6.60 lakh)
The Tata Tiago is known for its safety, stylish design, and value for money. It is a great choice for families.
Features:
- 1.2-litre petrol engine
- 84 bhp power
- Mileage: 19.8 km/l
- Safety: Dual airbags, ABS, parking sensors
- Features: 7-inch touchscreen music system, Android Auto, Apple CarPlay
Pros:
- Strong build quality
- Comfortable and feature-rich interior
- Spacious boot
Cons:
- Interior quality could be better
- Slightly less fuel-efficient than some others

5. Maruti Suzuki S-Presso (Price: ₹4.30 lakh – ₹5.60 lakh)
The Maruti Suzuki S-Presso has an SUV-like look, which makes it different from other cars in this price range.
Features:
- 1.0-litre petrol engine
- 67.1 bhp power
- Mileage: 21.4 km/l
- Safety: Dual airbags, ABS, parking sensors
- Features: Basic music system, steering controls
Pros:
- High driving position with good visibility
- Affordable price
- Good fuel efficiency
Cons:
- Limited space inside
- Basic interior features
What to Consider When Buying a Car Under ₹5 Lakh
When buying a car in this price range, here are some things to think about:
1. Fuel Efficiency
Choose a car that gives you good mileage so you can save money on fuel in the long run.
2. Maintenance Costs
Make sure the car is affordable to maintain. Look for a brand with a good service network and low-cost spare parts.
3. Safety Features
Even budget cars should have important safety features like airbags, ABS, and parking sensors.
4. Comfort and Features
Look for a car that is comfortable to drive, with good space inside and useful features like a music system, steering controls, and adjustable seats.
Conclusion
There are many great cars under ₹5 lakh that offer value for money. The Maruti Suzuki Alto K10, Renault Kwid, Hyundai Santro, Tata Tiago, and Maruti Suzuki S-Presso are some of the best options available in India.
When choosing a car, think about what’s most important to you: fuel efficiency, safety, comfort, or style. By considering these factors, you can find a car that fits your budget and needs perfectly.