Best new cars to buy for ₹5 lakhs in India
At the outset, let me complement you by saying that you are one among the “rarest of the rare” of car buyers in India looking for an entry-level car below ₹5 lakh mark! At least, that’s what the industry statistics tell us – new car buyers in India right now are less interested in budget cars, but instead prefer those options that are well-equipped and fashionable, with a ‘posh’ brand image and decent road presence.
Gone are the days when a modest budget could secure a reliable and stylish set of wheels, not just tin-can hatchbacks, even sedans. The Indian automotive market, once a bastion of affordable options, has been transformed into a landscape dominated by mid-premium and luxury cars and brands. The market scenario is also complemented by a relentless rise in average prices of cars in the entry-level budget segments.
For those seeking a practical and economical new car option, the choices have become increasingly limited and often compromised. However, we can still find the best cars among the limited options in the ₹5 lakh category. In some cases, you may also need to stretch your budget a bit to get the right option. Buckle up, as we list out those car models to help you find the perfect car to suit your needs and budget.
1. Maruti Suzuki Alto K10
Price: ₹3.99 – 5.96 lakhs*; ✔AMT ✔CNG
The undisputed king of the budget car segment for decades, the Alto K10 offers exceptional fuel efficiency, a spacious interior, and a peppy engine. Although the present generation is not as solid and sporty as its predecessors in terms of looks, the car is undeniably much improved. Its reliability and low maintenance costs make it a popular choice for first-time buyers and those on a tight budget even today.
2. Renault Kwid
Price: ₹4.70 – 6.45 lakhs*; ✔AMT option
The Renault Kwid is perhaps the best car I would suggest to those buyers with a budget of ₹5 lakh. offers a unique proposition in the budget car segment. Known for its bold design and SUV-inspired styling, the car offers spacious interior, high ground clearance, and fuel-efficient engine, making it a practical and versatile option for city and sub-urban commutes.
Also Read: Renault Kwid 1.0L RXT (O): Should You Buy Or Not?
3. Maruti Suzuki S-Presso
Price: ₹4.26 – 6.11 lakhs*; ✔AMT ✔CNG
This SUV-inspired hatchback combines the practicality of a city car with an aspirational appeal of an SUV in the entry-level segment. Its high ground clearance, reliable engine (same as Alto K10), and decent interior make it a suitable choice for first time buyers and thrill-free city drivers.
4. Tata Tiago
Price: ₹5.00 – 8.75 lakhs*; ✔AMT ✔CNG
With its stylish design, robust build quality, and spacious cabin, the Tata Tiago is a great buy for those budget customers seeking a more premium experience. Unlike all other hatchbacks in this list, the Tiago is powered by a bigger 1.2-litre (84 bhp) engine and relatively offers better features and packages (in terms of variants). Tata’s service network and re-sale value is also great in recent times.
5. Maruti Suzuki Celerio
Price: ₹5.37 – 7.05 lakhs*; ✔AMT ✔CNG
A versatile hatchback that offers a blend of practicality and comfort, the Celerio features a spacious interior, a fuel-efficient engine (same as Alto K10 and S-Presso), and a comfortable ride. For those who prefer Maruti Suzuki but ask for better driving experience than Also K10, look no further than Celerio.
6. Maruti Suzuki Eeco
Price: ₹5.33 – 6.58 lakhs*; ✔CNG
The Eeco van is suggested only for those who require more passenger seats and cabin versatility. A renowned successor to the ‘cult car’ Maruti Omni, its 7-seat configuration with folding rear benches and sliding doors can enable over-sized luggage and cargo that hatchbacks can never accommodate. The Eeco’s peppy 1.2-litre petrol engine is also quite efficient and reliable.
Also Read: Top 10 Highest Torque To Weight Ratio Cars Under 10 Lakhs In India
*All prices are average ex-showroom prices. On-road prices will be higher, subject to the registration charges and state taxes.
