In this blog, I, Abhishek Thakur, will take you through the best budget cars in India that cost less than ₹5 lakh. This blog is specially written in simple words, so everyone can understand easily.
Why Choose a Car Under ₹5 Lakh?
A car under ₹5 lakh is a great choice if you want something simple, useful, and not too expensive. These cars are perfect for people who don’t want to spend too much money but still want a good and safe car. If you are buying your first car, or you need a small car for your daily work, school, or family use, then a budget car is just right for you.
They are easy to drive, don’t use too much fuel, and their service cost is also low. Today, even small cars come with useful features like airbags, power windows, and music systems. They are easy to park in small spaces and work well in city traffic. So, if you want a car that saves money and still does the job, buying a car under ₹5 lakh is a smart idea.
Not everyone wants a fancy car. Some people just want a car that is:
- Easy to drive
- Low maintenance
- Fuel-efficient
- Budget-friendly
- Good for daily use
Cars under ₹5 lakh are perfect for:
College students
First-time car buyers
Small families
Budget-conscious buyers
Top 7 Best Cars Under ₹5 Lakh in India (2025)
Let’s look at the top cars you can buy in India under ₹5 lakh.
1. Maruti Suzuki Alto K10
- Price: ₹3.99 – ₹5.10 Lakh
- Mileage: 24–26 km/l
- Fuel Type: Petrol / CNG
- Seating Capacity: 5
Why Buy?
Maruti Alto K10 is one of the most popular small cars in India. It is affordable, fuel-efficient, and perfect for city driving. The latest model looks stylish and comes with smart features like a touchscreen and dual airbags. Best Cars Under 5 Lakh in India
Best for: First-time car buyers and students
Easy to park and drive in traffic
2. Renault Kwid
- Price: ₹4.70 – ₹6.45 Lakh
- Mileage: 21–22 km/l
- Fuel Type: Petrol
- Seating Capacity: 5
Why Buy?
Renault Kwid is a stylish small car that looks like a mini SUV. It has a big touchscreen, digital instrument cluster, and great boot space. If you want style on a budget, Kwid is a great pick. Best Cars Under 5 Lakh in India
Best for: Young drivers who want style and space
SUV-like design in a small car budget
3. Maruti Suzuki S-Presso
- Price: ₹4.27 – ₹6.12 Lakh
- Mileage: 24–25 km/l
- Fuel Type: Petrol / CNG
- Seating Capacity: 5
Why Buy?
S-Presso is another smart choice from Maruti. It’s a tall car, which gives better road view. The design is quirky, and the interior is basic but modern. It also comes with a factory-fitted CNG option. Best Cars Under 5 Lakh in India
Best for: City driving and tall drivers
Good ground clearance
4. Bajaj Qute (RE60)
- Price: ₹3.61 – ₹4.50 Lakh
- Mileage: 35–40 km/l
- Fuel Type: Petrol / CNG
- Seating Capacity: 4
Why Buy?
The Bajaj Qute is not a full-sized car, but a quadricycle. Still, it’s road-legal and very fuel-efficient. It’s perfect for short city rides and small towns. Best Cars Under 5 Lakh in India
Best for: Local commuting and delivery business
Cheapest four-wheeler in India
5. Datsun Redi-GO (Discontinued – Available in Used Market)
- Price (Used): ₹2.5 – ₹4.5 Lakh
- Mileage: 20–22 km/l
- Fuel Type: Petrol
- Seating Capacity: 5
Why Buy?
Though Datsun has exited India, redi-GO was a fantastic car. You can find well-maintained used redi-GO models under ₹5 lakh. It’s compact, easy to drive, and stylish. Best Cars Under 5 Lakh in India
Best for: Budget used car buyers
Great resale value
6. Maruti Suzuki Eeco (Base Variant)
- Price: ₹5.32 Lakh (Some offers may bring it below ₹5 Lakh)
- Mileage: 20–21 km/l
- Fuel Type: Petrol / CNG
- Seating Capacity: 5 or 7
Why Buy?
Eeco is a multi-purpose van that can be used for family, goods transport, or even business. It has lots of space inside and comes in petrol and CNG options. Best Cars Under 5 Lakh in India
Best for: Big families or small businesses
Value-for-money
7. Used Cars – A Smart Choice
If your budget is strictly under ₹5 lakh, you can also check certified used cars on websites like:
- Cars24
- Spinny
- OLX Autos
- Maruti True Value
You can buy good condition used cars like:
- Swift
- WagonR
- i10
- Tiago
Tip: Always check service history, accident records, and take a test drive.
Features to Expect : Best Cars Under 5 Lakh in India
While budget cars are affordable, they also come with useful features:
|
Feature |
Availability |
|
Power Steering |
Yes |
|
Power Windows (Front) |
Yes |
|
Dual Airbags |
Yes (Standard Now) |
|
ABS with EBD |
Yes |
|
Touchscreen Display |
In top variants |
|
Rear Parking Sensors |
Yes |
How to Choose the Right Car Under ₹5 Lakh?
Here are some tips before you buy:
- Purpose – Are you buying it for office travel, family, or business?
- Fuel Type – Choose petrol for low usage, CNG for daily long drives.
- Maintenance Cost – Maruti and Renault offer cheap service.
- Resale Value – Maruti cars sell easily even after 5–7 years.
- Safety Features – Always go for dual airbags and ABS.
EMI Calculator Example: Best Cars Under 5 Lakh in India
Let’s say your car costs ₹5 lakh. Here’s a rough EMI breakdown:
- Down Payment: ₹50,000
- Loan Amount: ₹4.5 lakh
- Interest Rate: 9%
- Tenure: 5 years
Monthly EMI: Around ₹9,500
(Use a proper online EMI calculator to know the exact figure)
Final Words by Abhishek Thakur
Buying a budget car under ₹5 lakh doesn’t mean you have to compromise. As I, Abhishek Thakur, shared on my blog The News Namaste, there are many great options that give you mileage, comfort, and safety.
In 2025, small cars have become smarter, safer, and more stylish. Whether it’s Maruti Alto K10 or Renault Kwid – your dream of owning a car is now just a few lakhs away!
If you enjoyed this article, don’t forget to share it with your friends and family. For more such guides, stay tuned to The News Namaste!