Best Cars Under 5 Lakh in India

Last Modified: 23-December-2024

Finding the right car within a budget can be a challenging yet exciting task, especially when you’re looking for a reliable vehicle that doesn’t break the bank. In India, there are several options that offer great value for money, combining affordability with performance, comfort, and safety.

Whether you’re seeking the best budget cars in India, a safe car under 5 Lakh, or even a 6-seater car under 5 Lakh, there’s a range of choices to suit your needs. Many of these cars are designed to offer a balance of features, fuel efficiency, and safety at an affordable price point, making them ideal for first-time buyers or those on a tight budget.

Additionally, if you’re considering a pre-owned car, Muthoot Capital offers Used Car Loans to help you finance your purchase. With flexible repayment terms and competitive interest rates, securing your dream car has never been easier. This guide will explore some of the best cars under 5 Lakh in India, making your decision easier and more informed.

List of Best Cars Under 5 Lakh in India

Here’s a comparison of the best-selling cars under 5 Lakh in India, featuring prices, key specifications, and mileage:

S No. Car Name Price Range Key Specifications Mileage
1 Renault Kwid Rs. 4.60 – Rs. 5.50 Lakh Engine: 0.8L/1.0L, Power: 54-68 bhp, Torque: 72-91 Nm, 5-speed manual 20-22 km/l
2 Maruti Suzuki Alto 800 Rs. 3.54 – Rs. 5.13 Lakh Engine: 0.8L, Power: 47 bhp, Torque: 69 Nm, 5-speed manual 22-24 km/l
3 Datsun Redi-GO Rs. 3.83 – Rs. 5.35 Lakh Engine: 0.8L, Power: 54 bhp, Torque: 72 Nm, 5-speed manual 22-24 km/l
4 Tata Tiago Rs. 4.85 – Rs. 5.40 Lakh Engine: 1.2L, Power: 84 bhp, Torque: 113 Nm, 5-speed manual 19-23 km/l
5 Hyundai Santro Rs. 4.85 – Rs. 5.45 Lakh Engine: 1.1L, Power: 68 bhp, Torque: 99 Nm, 5-speed manual 18-20 km/l

Top 5 Cars under 5 Lakh in India

Here are some of the best budget cars in India. If you’re considering purchasing a second-hand car, ensure you buy from a certified dealer to guarantee quality and reliability.

1. Renault Kwid :

Renault-Kwid-1

 

Renault Kwid is one of the most popular affordable cars in India. Known for its compact design and SUV-like stance, the Kwid offers excellent features for a budget car. It is available in a 1.0L engine option, offering a good balance of performance and fuel efficiency. The Renault Kwid is ideal for city commuting, and its high ground clearance of 184 mm and rugged design make it stand out among other small cars. Priced between Rs. 4.70 Lakh and 6.45 Lakh (ex-showroom), the car comes with both manual and automatic transmission options, delivering around 22 kmpl fuel efficiency. It provides 2 airbags and is suitable for urban drivers looking for a stylish and practical compact car.

Key Specifications:

Specification Details
Engine 1.0L
Power 67.06 bhp
Torque 91 Nm @ 4250 rpm
Transmission 5-speed manual/AMT
Fuel Tank Capacity 28 Litres
Seating Capacity 5

Mileage: 20-22 km/l (depending on road conditions)

Popular For:

  • Affordable pricing with good features.
  • SUV-like design with a high ground clearance.
  • Compact size, making it ideal for city driving.
  • Great fuel economy for daily commuting.

2. Maruti Suzuki S-Presso :

Maruti-Suzuki-S-Presso-2022

 

The Maruti Suzuki S-Presso is a compact, budget-friendly hatchback that offers a high driving position and an SUV-like feel. With a 1.0-litre engine, it delivers a good balance of power and fuel efficiency. Its modern design, spacious cabin, and impressive safety features make it a popular choice among first-time car buyers. The S-Presso is also equipped with advanced infotainment and smart connectivity options, offering great value under 5 Lakh.

Key Specifications:

Specification Details
Engine 1.0L (998 cc), K10C engine
Power 55.92bhp@5300rpm
Torque 82.1Nm@3400rpm
Transmission 5-speed manual/automatic
Fuel Tank Capacity 55 Litres
Seating Capacity 5

Mileage: 20-24 km/l (depending on road conditions)

Popular For:

  • Affordability with a solid reputation for reliability.
  • Low maintenance cost, making it a budget-friendly option.
  • Ideal for first-time car buyers looking for a compact and fuel-efficient car.
  • City-friendly design with easy manoeuvrability.

3. Datsun Redi-GO :

Datsun Redi-GO

 

The Datsun Redi-GO is a popular choice among those looking for a compact hatchback under Rs. 5 Lakh. With a bold design and spacious interiors, the Redi-GO stands out as one of the most stylish and affordable options in the small car segment. Its high ground clearance and smooth handling make it a perfect companion for both city drives and light off-road conditions.

Key Specifications:

Specification Details
Engine 999 cc
Power 67.05bhp@5550rpm
Torque 91nm@4250rpm
Transmission Automatic
Fuel Tank Capacity 28 Litres
Seating Capacity 5

Mileage: 20.71 km/l (depending on road conditions)

Popular For:

  • Stylish design with a spacious cabin for its size.
  • High ground clearance, making it suitable for Indian road conditions.
  • Affordable pricing with good fuel efficiency.
  • Great for city driving and occasional highway trips.

Additional Read: Best Ways to Improve Your Car Mileage

4. Maruti Suzuki WagonR :

Maruti Suzuki WagonR

 

The Maruti Suzuki WagonR has been a popular hatchback car in India for years. It offers a spacious cabin with a high seating position for better road visibility, making it an excellent choice for families. The WagonR is also known for its fuel efficiency and reliability, with minimal maintenance costs. For buyers looking for an affordable family car that doesn’t compromise on space or features, the WagonR is a top contender.

Key Specifications:

Specification Details
Engine 1197 cc
Power 88.50bhp@6000rpm
Torque 113Nm@4400rpm
Transmission Automatic
Fuel Tank Capacity 32 Litres
Seating Capacity 5

Mileage: 23.56 – 34.05 km/l (depending on road conditions)

Popular For:

  • Spacious interior with ample legroom.
  • Fuel-efficient engine, making it a practical choice for daily commutes.
  • Family-friendly hatchback with low maintenance costs.
  • Reliable brand with strong after-sales service in India.

5. Hyundai Santro :

Hyundai-Santro

 

The Hyundai Santro is a reliable, compact hatchback that offers a spacious cabin and good ride quality for its size. Known for its refined engine and modern features, the Santro continues to be a popular choice among buyers looking for an affordable car with premium features. Its high safety standards, smooth drive, and fuel efficiency make it an ideal car for both urban and rural areas.

Key Specifications:

Specification Details
Engine 1086 cc
Power 68.05bhp@5500rpm
Torque 99.04Nm@4500 rpm
Transmission 5-speed manual/automatic
Fuel Tank Capacity 35 Litres
Seating Capacity 5

Mileage: 20-24 km/l (depending on road conditions)

Popular For:

  • Premium feel with modern features like Bluetooth connectivity and touchscreen infotainment.
  • Good build quality and safety features for a budget car.
  • Fuel efficiency with smooth driving performance.
  • Ideal for small families or first-time buyers.

Conclusion

In India, there are numerous budget-friendly cars under 5 Lakh that offer excellent features, performance, and fuel efficiency. Whether you’re considering a compact hatchback like the Renault Kwid or a practical sedan like the Maruti Suzuki Alto 800, there is an option for everyone. These cars cater to a range of needs, from city commuting to family outings, without stretching your budget.

If you’re considering a second-hand car as your budget option, choose a trusted dealer to ensure a quality purchase. The Tata Tiago, for example, is renowned as one of the safest cars under 5 Lakh. You can even finance a 6-seater car under 5 Lakh using a Used Car Loan from Muthoot Capital. These loans provide an easy and accessible way to own your dream vehicle at affordable EMIs, making it possible to find the best deals without a large upfront cost.

FAQs

What is the best car under 5 Lakh in India for families?

Renault Kwid and Maruti Suzuki Alto 800 are great options for small families. These cars offer spacious interiors and excellent fuel efficiency, making them perfect for daily commuting and family outings.

Which car has the best mileage under 5 Lakh?

The Maruti Suzuki Alto 800 offers one of the best mileages of 22-24 km/l in the segment, making it a fuel-efficient option for budget-conscious buyers.

Is there any compact SUV under 5 Lakh in India?

While SUVs are generally priced higher, the Renault Kwid offers an SUV-like stance and is an ideal option for those looking for a car with higher ground clearance and a rugged look within the 5 Lakh budget.

What are the best cars for first-time buyers under 5 Lakh?

The Maruti Suzuki Alto 800, Renault Kwid, and Datsun redi-GO are all fantastic choices for first-time car buyers. These cars are affordable, easy to maintain, and come with basic features that make them practical and reliable.

Which car offers the best value for money under 5 Lakh?

The Renault Kwid and Maruti Suzuki Alto 800 are excellent options offering great value for money with their feature set, performance, and affordability.

Can I get a car with safety features under 5 Lakh?

Yes, the Renault Kwid and Maruti Suzuki Alto 800 come equipped with essential safety features like driver-side airbags, ABS, and rear parking sensors in higher trims, ensuring safety without exceeding the Rs. 5 Lakh budget.

Are used cars under 5 Lakh a good option?

Yes, buying a used car under 5 Lakh can be a great way to get a higher-segment vehicle at an affordable price. Be sure to purchase from a reliable dealership and check the car’s service history before making a decision.

What is the average maintenance cost for cars under 5 Lakh?

The maintenance cost for cars like the Maruti Suzuki Alto 800 and Renault Kwid is quite low compared to higher-end models. You can expect annual maintenance costs to range from Rs. 5,000 to Rs. 15,000, depending on usage and servicing.


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Muthoot Capital Services Limited is one of India's most progressive financial companies. It is the part of Muthoot Pappachan Group which carries a legacy & trust of more than 133 years.
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