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Best Cars Under 5 Lakhs

The Indian car market has been dominated by the budget-oriented buyer. Today, new cars in 5 lakh come with a host of features that offer the maximum bang for every rupee spent. These cars also offer high mileage and low cost of maintenance. These reasons make the best cars under 5 lakh excellent value for money that offer great resale value. Here is a list of best cars under 5 lakhs.

1. Maruti Suzuki Wagon R

The Wagon R is a surprisingly spacious hatchback. The car can easily fit a family of 5 including boot space that will pack ample luggage for a week long holiday. The biggest eye-catching feature of the car is the “tall boy” looks which is dictated by practicality more than anything else. The high roof means ingress-egress is very convenient and there’s loads of room in the cabin too. The new Wagon-R gets two petrol engines to choose from: a 1 litre 68hp motor and a 1.2 litre 83hp motor. The can also gets both manual and automatic variants. 

Car Name

Maruti Suzuki Wagon R

One Road Price

Rs. 5.07 Lakhs (Delhi)

Mileage

20.52 - 32.52 Kmpl

Engine

998 - 1197 cc

Transmission

Manual and Auto (AMT)

Fuel Type

Petrol and CNG

Seating Capacity

5

Available Variants

1 (Under 5 Lakhs)

2. Tata Tiago

The Tiago is Tata Motors’ smart and uber cool city hatchback. The most attractive part about the car is the competitive pricing and the value it brings to buyers. The car got a recent 2020 upgrade with interior and exterior changes along with a BS6 complaint engine that delivers an impressive 85hp. The new engine is available in both a manual transmission and an AMT gearbox. Like most Tata models, the Tata Altroz has been awarded a 5 star adult occupant protection rating by Global NCAP.

Car Name

Tata Tiago

One Road Price

Rs. 5.3 Lakhs (Delhi)

Mileage

19.2 – 23.84Kmpl

Engine

1199 cc

Transmission

Manual and Auto (AMT)

Fuel Type

Petrol

Seating Capacity

5

Available Variants

1 (Under 5 Lakhs)

3. Renault Kwid

The Kwid is Renault’s answer to India’s favorite entry-level hatch, the Maruti Alto. The Kwid pleasantly surprises with its SUV-inspired styling, digital dials and touchscreen infotainment system. Since it was launched, the car has successfully established that a budget hatchback doesn't have to be boring. The compact car is available with two petrol engine options, the larger of which can also be had with AMT. Climber editions are distinguished with bolder colours and sport trendy detailing on the inside. 2019's facelift has brought revised styling, a refreshed cabin and more features to the Kwid.

Car Name

Renault Kwid

One Road Price

Rs. 3.64 Lakhs (Delhi)

Mileage

22.25 – 24.3 Kmpl

Engine

799 - 999 cc

Transmission

Manual and Auto (AMT)

Fuel Type

Petrol

Seating Capacity

5

Available Variants

8

4. Maruti Suzuki Celerio

The Celerio is a mini-hatchback that introduced the concept of AMT to the Indian car-buying public. Before the Celerio was launched, an AMT gearbox was only available on very premium cars. Nonetheless the gearbox was just one of many factors that helped the sensible Celerio click and go on to become one of India’s best-selling cars. The Maruti hatchback is available in petrol-manual, petrol-AMT and CNG-manual forms. Powering the Celerio is a three-cylinder petrol which is a renowned motor from the Maruti stable.

Car Name

Maruti Suzuki Celerio

One Road Price

Rs. 4.97 Lakhs (Delhi)

Mileage

21.63 Kmpl

Engine

998 cc

Transmission

Manual and Auto (AMT)

Fuel Type

Petrol and CNG

Seating Capacity

5

Available Variants

10

5. Maruti Suzuki Alto

The evergreen Maruti Suzuki Alto 800 received a major update with perhaps the biggest upgrade involving the dropping of the ‘800’ tag from its name. In addition to the exterior and interior revisions, the refreshed Maruti Alto is now compliant with India’s latest safety standards. Its 796cc engine has also been made BS-VI emission norms-ready, ensuring the Alto will remain on sale for a good few more years to come. The diminutive Alto is available in petrol and CNG versions but there's no automatic gearbox option. The car is among the most affordable passenger automobiles on sale in India. Along with great value for money, buyers get Maruti’s peace-of-mind ownership experience for years to come.

Car Name

Maruti Suzuki Alto

One Road Price

Rs. 3.32 Lakhs (Delhi)

Mileage

22.05 - 31.59 Kmpl

Engine

796 cc

Transmission

Manual 

Fuel Type

Petrol and CNG

Seating Capacity

5

Available Variants

6

6. Maruti S-Presso

Maruti Suzuki has labelled the S-Presso as a mini SUV, but for all intents and purposes, the car is best thought of as a tall budget hatchback. The S-Presso is available with a 1.0-litre petrol engine and can be had with a 5-speed manual and AMT automatic gearbox options. The S-Presso retails from Maruti’s Arena network. The key highlight of the car is the ample room on offer. The car can seat 5 people with ease and has a boot capacity of 240-litres. 

Car Name

Maruti S-Presso

One Road Price

Rs. 4.09 Lakhs (Delhi)

Mileage

21.53 – 31.2 Kmpl

Engine

998 cc

Transmission

Manual and Auto (AMT)

Fuel Type

Petrol and CNG

Seating Capacity

4 and 5

Available Variants

12

7. Maruti Eeco

The Maruti Suzuki Eeco is a utility vehicle that is great at transporting people and cargo both at the same time. The car fits well as a basic mode of transportation for short rides that don't require too much comfort. The Eco is adept at carrying large commercial goods which makes it ideal as a commercial vehicle. The Eeco is available in petrol and CNG versions and can be had in five- and seven-seat configurations. 2019's update has added mandatory safety essentials such as a driver airbag and ABS.

Car Name

Maruti Eeco

One Road Price

Rs. 4.49 Lakhs (Delhi)

Mileage

16.11 - 30.37 Kmpl

Engine

1197 cc

Transmission

Manual

Fuel Type

Petrol and CNG

Seating Capacity

5 and 7

Available Variants

3

8. Datsun Redi-Go

The Redigo is a budget hatchback from the Japanese car manufacturer Datsun’s. It shares its basic mechanicals DNA with the Renault Kwid. However, when it comes to looks, both inside and outside, the Redigo has a few quirks up its sleeves. The Redigo is available with two petrol engine options – a 0.8-litre and a 1.0-litre – with the latter available with the option of an AMT auto. While a heavily updated Redigo is in the works, Datsun has made ABS standard across the range.

Car Name

Datsun redi-Go

One Road Price

Rs. 3.29 Lakhs (Delhi)

Mileage

20.71 – 22 Kmpl

Engine

799 - 999 cc

Transmission

Manual and Auto (AMT)

Fuel Type

Petrol

Seating Capacity

5

Available Variants

6

9. Datsun Go

The Datsun Go is a budget hatchback from the Japanese car manufacturer Datsun. The Go is among the most affordable hatchbacks on sale in India. The car got a substantial upgrade in 2018 that brought with it revised styling, a spruced-up cabin and more equipment. Pleasantly surprising was the inclusion of dual airbags and ABS that were made standard with the update. Datsun’ very own Vehicle Dynamic Control is also offered as an option. The Datsun Go is available in petrol-manual and petrol-CVT automatic versions.

Car Name

Datsun Go

One Road Price

Rs. 4.62 Lakhs (Delhi)

Mileage

19.02 – 19.59 Kmpl

Engine

1198cc

Transmission

Manual and Auto (CVT)

Fuel Type

Petrol

Seating Capacity

5

Available Variants

7

10. Datsun Go+

The Datsun Go+ is among the most affordable seven seaters-MPV on sale in India. Although on paper the Go is a seven seater, the last two rows of seats are virtually unusable. One look at the interior and you are made to believe the car is more of an extended hatchback than a seven seater-MPV. The Go+ is offered in petrol-manual and petrol-CVT auto variants.

Car Name

Datsun Go +

One Road Price

Rs. 4.90 Lakhs (Delhi)

Mileage

18.57 – 19.02 Kmpl

Engine

1198cc

Transmission

Manual and Auto (CVT)

Fuel Type

Petrol

Seating Capacity

7

Available Variants

6

11. Hyundai Santro

The new Santro might share the name with the earlier model, but that is all that it has in common. The new car features all new internal and external design aesthetics along with a more conventional silhouette. Hyundai has successfully managed to make the cabin feel upmarket with plenty of room in the back. Rear passengers will also be delighted by the large rear windows, which make the car feel bigger. The car is available in both manual and automatic transmission setups. 

Car Name

Hyundai Santro

One Road Price

Rs. 5.24 Lakhs (Delhi)

Mileage

20.53 – 30.02 Kmpl

Engine

1086cc

Transmission

Manual and Auto (AMT)

Fuel Type

Petrol and CNG

Seating Capacity

5

Available Variants

8

12. Maruti Suzuki Ignis

The Ignis is a Maruti Suzuki hatchback like no other. The car feels young and fresh and looks quirky - something that people will either love or hate. The car was formerly available with a diesel engine, however, today it is sold as an only petrol-manual and petrol-AMT. It holds the distinction of being the most affordable car to be sold from Maruti Suzuki’s premium Nexa network.

Car Name

Maruti Suzuki Ignis

One Road Price

Rs. 5.39 Lakhs (Delhi)

Mileage

20.89 Kmpl

Engine

1197cc

Transmission

Manual and Auto (AMT)

Fuel Type

Petrol

Seating Capacity

5

Available Variants

6

13. Maruti Alto 800

Since its launch, the new Maruti Suzuki Alto 800 has been rather well received. After 12 generations of the first-gen Maruti 800, the car is still going strong. The all new Alto 800 looks and feels significantly different from the old Alto and it’s priced extremely well too. The Alto 800 continues to be powered by the small 796cc, three-cylinder primitive F8D motor. On the fuel efficiency front, the Alto gave a respectable 13.3kpl in the city and a decent 17.8kpl out on the highway.

Car Name

Maruti Alto 800

One Road Price

Rs. 3.32 Lakhs (Delhi)

Mileage

22.05 to 31.59 Kmpl

Engine

796 cc

Transmission

Manual 

Fuel Type

Petrol and CNG

Seating Capacity

5

Available Variants

6

Comprehensive Car Insurance for your new Car

Before you drive out of the car dealership, you'll need to show you have insurance coverage that meets government RTO guidelines. However, shopping for and buying car insurance for your new vehicle can be a confusing process. You need to know about the types of car insurance, what kind of add ons your car news, or just how much coverage you actually require.

To help you through this hurdle, an online car insurance quote from Finserv MARKETS will help you save both time and energy. While the process is relatively simple, there is some essential knowledge that will ensure you get the best coverage for your money. At Finserv MARKETS, it's easy to get a free auto insurance quote or even buy a policy if you like what you see.

FAQs On Cars Under 5 Lakhs

  • ✔️What is the best car to buy under 5 lakhs?

    The best-selling car under Rs. 5 Lakhs is the Renault Kwid. The base-model RXE comes at an on road price of Rs. 4.04 Lakhs and is loaded with modern features and equipment.

  • ✔️Should I consider an AMT in my choice of the best car under 5 lakhs?

    Choosing an AMT really depends on where you predominantly plan to drive. If you drive majorly on city roads, which require you to constantly change gears, then an AMT makes complete sense.

  • ✔️What fuel type should I consider for cars below 5 lakhs?

    There are primarily two types of fuel types available in the best cars below 5 lakhs. Petrol and CNG. If you primarily drive within city limits, the petrol variants make sense. If your city is well connected with CNG pumps, the CNG variants of the best cars under 5 Lakhs will be a cost effective option.

  • ✔️What is the lowest price car under Rs. 5 Lakhs?

    The Maruti Suzuki Alto is the lowest priced car in our list of best cars to buy under 5 lakhs. The Lxi is available at an on road price of Rs. 3.32 Lakhs.

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