10 BEST CARS UNDER 5 LAKHS IN INDIA

Cars priced below ₹5 lakhs are ideal for those upgrading from two-wheelers or seeking affordable, fuel-efficient, and compact family cars. These budget hatchbacks offer practicality, mileage, and ease of driving—perfect for first-time buyers.

Highlights:

1. Budget-friendly and family-oriented options under ₹5 lakhs.
2. Mostly compact hatchbacks known for city comfort and fuel efficiency.
3. Popular models: Renault KWID, Alto K10, S-Presso, Tiago, Wagon R, and more.
4. Electric options like Vayve Eva and PMV EaS-E now available in this range.
5. Ideal for light use and short city commutes.
6. Pair your new car with QuickInsure’s comprehensive car insurance to ensure total protection and peace of mind.

Cars below 5 lakhs in our country are often considered worthy replacements for two-wheelers. These are budget-friendly, affordable, and generally fuel-efficient utility options that can also be considered family-friendly rides for those unwilling to spend money on expensive cars.

A car under 5 lakhs typically falls under the hatchback segment, comprising easy-to-manoeuvre small vehicles. That said, it is not an easy task to zero in on the best car under 5 lakhs. Let's discuss the top 10 cars in India under 5 lakhs while going through their prominent specifications and price details.

Best Cars Under 5 Lakhs in India in 2025

1] Renault KWID:

The 5-seater stylish, compact, and eye-catching KWID comes with an SUV design and high ground clearance, making it the most innovative city-ready ride available in the country. 

Key Specifications:

✔      L Smart Efficiency Engine.

✔      Delivers 69 PS & 92.5 Nm of Torque. 

✔      28 Litres Fuel Tank Capacity.

✔      Mileage of Up to 22.3 Kmpl.

Average Ex. Showroom Price: INR 4.29 to 5.90 Lakhs.

 

2] Maruti Suzuki Alto K10:

The all-new Alto combines performance-friendly and compact characteristics with youthful exteriors, making it the perfect choice for effortless city drives.

Key Specifications:

✔      L K-Series Dual Jet Dual VVT Engine.

✔      Maximum Power of 50.4 kW@5,600 RPM.

✔      27 Litres Fuel Tank Capacity.

✔      Mileage of Up to 24.90 Kmpl.

Average Ex. Showroom Price: INR 3.69 to 5.45 Lakhs.

 

3] Maruti Suzuki S-Presso:

The bold SUV-inspired small car brings a youthful design, distinctive exteriors, swanky interiors, and punchy performance for tackling city streets.

Key Specifications:

✔      K10C 998cc Dual Jet Engine.

✔      Maximum Power of 49 kW@5,500 RPM.

✔      27 Litres Fuel Tank Capacity.

✔      Mileage of Up to 25.3 Kmpl.

Average Ex. Showroom Price: INR 3.49 to 5.24 Lakhs.

 

4] Tata Tiago:

The bold and lively Tiago comes with cutting-edge technology and best-in-class safety features, resulting in uncompromised fun-filled rides.

Key Specifications:

✔      1.2 L Revotron Engine.

✔      Maximum Power of 86 PS@6,000 RPM.

✔      35 Litres Fuel Tank Capacity.

✔      Mileage of Up to 19.01 Kmpl.

Average Ex. Showroom Price: INR 4.57 to 7.82 Lakhs.

 

5] Maruti Suzuki Celerio:

Youthful, stylish, performance-friendly, highly functional, and fuel-efficient, the Celerio is appropriate for city-cruising.

Key Specifications:

✔      K10C 998cc Engine.

✔      Maximum Power of 50.4 kW@5,600 RPM. 

✔      32 Litres Fuel Tank Capacity.

✔      Mileage of Up to 26.68 Kmpl.

Average Ex. Showroom Price: INR 4.69 to 6.72 Lakhs.

 

6] Maruti Suzuki Wagon R:

The iconic and highly spacious Wagon R now brings a sporty design with a robust tall-boy stance and practical features, making it the right fit for everyday drives.

Key Specifications:

✔      K12N 1,197cc Smooth & Reliable Engine.

✔      Maximum Power of 66.9 kW@6,000 RPM.

✔      32 Litres Fuel Tank Capacity.

✔      Mileage of Up to 25.19 Kmpl.

Average Ex. Showroom Price: INR 4.99 to 6.95 Lakhs.

 

7] Citroen C3: The new turbo-powered French C3 comes across as a feature-rich compact car offering advanced comfort at a highly reasonable price.

Key Specifications:

✔      PURETECH 82, PURETECH 110, 1,198cc and 1,199cc Engine Options.

✔      Maximum Power of 82 PS@5,750 RPM & 110 PS@5,500 RPM.

✔      30 Litres Fuel Tank Capacity.

✔      Mileage of Up to 19.3 Kmpl.

Average Ex. Showroom Price: INR 4.80 to 10.20 Lakhs.

 

8] Vayve Mobility Eva:

The solar-assisted compact electric car combines superior comfort with effortless manoeuvring, making it the preferred choice for busy city streets and urban commuting.

Key Specifications:

✔      Air-cooled & Liquid-cooled Electric Battery with 48-320 V.

✔      Peak Power of 12-15 kW.

✔      Battery Capacity of 9-18 kWh.

✔      Driving Range of 125-250 Kms.

Average Ex. Showroom Price: INR 3.25 to 4.49 Lakhs.

 

9] Strom Motors R3:

The all-electric 2-door and 2-seater urban car is the latest offering from the Indian startup ecosystem, and it intends to provide hassle-free city travel experiences.

Key Specifications:

✔      AC Induction with 15 kW Motor & Lithium-ion Battery.

✔      Maximum Power of 20.11 Bhp.

✔      Battery Capacity of 30 kWh.

✔      Range of 200 km.

Average Ex. Showroom Price: INR 4.50 Lakhs.

 

10] PMV Electric's EaS-E: 

The fully electric sub-three-metre and 2-seater EaS-E is a smart microcar from PMV Electric, and it claims to be the most affordable EV in India.

Key Specifications:

✔      PMSM Motor with Lithium Iron Phosphate Battery.

✔      Maximum Power of 13.41 Bhp.

✔      Battery Capacity of 10 kWh.

✔      Range of 160 km.

Average Ex. Showroom Price: INR 4.79 Lakhs.

 

A family car within 5 lakhs will likely be desired by first-time and cost-conscious buyers looking for light usage rides, not necessarily focusing on the car's BHP numbers. No matter what you choose to prioritise, there is no shortage of options. Being hatchbacks, most cars below 5 lakhs can be admired for their manoeuvrability; however, they are not recognised as the safest cars. And that's where comprehensive car insurance comes to your rescue.

Get started with QuickInsure, analyse all premier service providers' offerings, features, benefits, and prices, and pick the right car policy for your unique needs.

Explore Now!

 

FAQs

1] Which major car companies sell a car under five lakhs?

Maruti Suzuki, Renault, Tata and Citroen.

2] Can I get a sedan for less than five lakhs in India?

No, you can certainly choose from Hatchbacks, small and microcars.

3] Are there diesel cars in India that are under five lakhs?

No, customers can only go for petrol or electric car variants.

4] Which is the best car under 5 lakhs with the highest mileage?

Maruti Suzuki's Celerio, with 26.68 Kmpl.

5] Which is the cheapest amongst all the cars below 5 lakhs?

Vayve Mobility's Eva, with the average ex-showroom price starting from INR 3.25 lakhs.

 

Note: The above information is purely indicative in nature and subject to change without any prior notice. Please refer to manufacturers' official websites for the most up-to-date information before taking action.

 

Published on - 07/11/2025