7 Best Cars Under 5 lakhs in India - Best Budget Cars | Tata AIG Blog (2022)

  • Author :
  • TATA AIG Team
  • Published on :
  • 18/04/2022

The Indian car market is growing exponentially, with new and advanced cars being launched every day. While there are numerous choices, many people prefer affordable cars that cost less than 5 lakhs. Most of these cars come with great features at a lower rate which is an optimum choice for many people in the country.

Are you planning to buy a new car? The budget plays a vital role in deciding which car is right for you. If your budget is tight and you wish to purchase a new car under 5 lakh, you’ve arrived at the right place. On this page, we have the details you need to purchase the best car under 5 lakh. You can explore the various models and their features to know which of them meets your unique needs properly.

Best Car Under 5 lakhs in India

Here is the list of the best cars below 5 lakhs:

  • Maruti Suzuki Alto

When you think of affordable cars in India, you ought to think of the Alto 800. The vehicle comes in CNG and petrol fuel options. It has a 177-litre boot space. But, Maruti only offers a manual variant. So, if you want a car with automatic transmission, you’ll have to look elsewhere.

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The vehicle’s 3-cylinder petrol engine generates 47 PS of power and 69 Nm of torque. It means that the vehicle is ideal for a regular commute. This is one of the best options in the category of car prices in India below 5 lakhs.

  • Renault Kwid

When searching for the best car below 5 lakhs, this is another option you can consider. It has different variants in the petrol fuel option. A consumer can choose between an automatic or manual transmission. The manual variant has a 5-speed transmission system. The engine displacement is between 799 to 999 cc and generates a power of 54 PS and a torque of 72 Nm.

  • Maruti Suzuki S-Presso

Another budget-friendly 5 lakh car in India is the S-Presso. It is a hatchback, available in the petrol and CNG engine models. If you are looking for automatic transmission, you must buy the VXi variant. The LXi and Std models come with a 5-speed manual gearbox. The engine generates a maximum power of 68 PS and delivers a mileage of 21.7 kmpl. It is one of the best automatic cars in India under 5 lakhs.

  • Datsun Redi-GO

The Datsun Redi-GO 5-seater is a reliable and attractive option for budgeted consumers. It is available in the petrol variant only. The engine is capable of generating a maximum power output of 53.64 bhp and a torque of 72 Nm. You can either buy the economically priced manual variant or the higher-priced automatic variant. It is one of the most sought after 5 lakh cars in India.

  • Hyundai Santro

Hyundai delivers quality even in the budget segment. The Santro comes in four variants - Asta, Magna, Era, and Sportz. The Sportz and Magna variants come with a CNG fuel engine. The automatic transmission option is also available in these two categories only. The vehicle has a 5-speed gearbox that delivers impressive handling and control. The 5-seater with a 1086 cc engine delivers a mileage of 20.3 kmpl.

  • *Tata Tiago *

Next on the list for the best car under 5 lakh in India is Tata Tiago. It has a 242-litre boot space, power windows, and a petrol engine. The vehicle is capable of producing a torque of 113 Nm and a power of 84.48 bhp. The 1199 cc engine delivers a mileage of 23.84 kmpl.

  • Maruti Suzuki Wagon R

The brand new Wagon R is available in two variants. There are cabin lamps at the front and dual-tone interiors. The driver’s side has a sun-visor with a cardholder. Passenger safety features include high-speed alerts and seat belt reminders. It has a child-proof door lock facility and a rear parking system.

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How to Choose the Best Car for You?

Buying a car is a cumbersome and tedious task. With several cars available in the segment under 5 lakhs, you need to consider factors like variants, features, transmission options, and mileage. Here’s a brief look at things you must keep in mind.

  • Budget

One of the most important considerations is the budget. You must know how much you can spend on buying a car. The budget doesn’t only include the showroom price. It also includes the cost of insurance, maintenance, and daily running. When you purchase a car, you need to purchase a car insurance policy too. You can find out the cost of the policy using our online car insurance calculator.

  • Fuel type

Depending on the usage of your vehicle, you can choose from diesel, petrol, CNG, or electric vehicles. Nowadays, the difference in prices for petrol and diesel are not too apart. CNG is a good option for car owners who travel more than 30 km per day. A CNG engine is cheaper to run, and the maintenance is at par with a petrol engine. Electric vehicles are also gaining popularity. They are a preferred choice for car owners who focus on savings.

  • Body type

The body type refers to the shape of the car. There are three body types - hatchbacks, sedans, and SUVs. Hatchbacks are the smallest, followed by the other two sizes.

  • Transmission

You have two obvious choices - manual or automatic. Many people look for a subtler and more comfortable ride during inter-city travel. For this purpose, an automatic transmission is the best bet. The range of automatic cars in India under 5 lakhs is vast. You can choose one as per

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Car Prices in India Below 5 Lakhs

Model Name Ex-Showroom Price in New Delhi*
Maruti Suzuki Alto ₹2,99,000
Hyundai Santro ₹4,77,000
Datsun Redi-GO ₹4,01,000
Nissan Magnite ₹4,99,000
Tata Tiago ₹5,00,000
Maruti Suzuki S-Presso ₹4,29,000
Maruti Suzuki Wagon R ₹4,93,000
Renault Kwid ₹3,18,000

Protect Your Car with Tata AIG Car Insurance

While you choose the best car below 5 lakhs for yourself, you must also consider getting the right insurance for 4 wheeler for your financial protection in case of an unfortunate accident on the road.

We at Tata AIG offer standalone third party car insurance, standalone own-damage car insurance and comprehensive car insurance with many features that optimum maximum protection to your car. Moreover, you can buy the policy online with a few clicks and undertake the car insurance renewal online in a hassle-free manner.

Also, you can also calculate the premium you need to pay using the car insurance premium calculator.

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The most popular car segment in India is in the range below ₹5 lakh. It is because it is the most affordable for the masses. But, choosing a car within this entry-level budget becomes challenging due to the plenty of options available in the market. The cars under 5 lakhs in India offer a perfect mix of peppy performance and budget-friendliness.

These cars also offer benefits like affordable insurance, maintenance, and lower running expenses. With Tata AIG, you can buy insurance for 4 wheeler in a few easy steps. The policy protects you against financial losses in the case of unforeseen events like accidents and natural calamities.


*All the car prices and other information listed above pertain to a specific city and vehicle model. Since this information is subject to change, it is advisable to check the latest information before purchasing a vehicle or an insurance policy.


Which car is best for middle class family under 5 lakhs? ›

Top 6 Cars Under 5 Lakh

Ex-Showroom price). The prices for the top 5 popular cars under 5 lakh are:Renault Kwid Price is ₹ 4.64 Lakh, Maruti Suzuki S-Presso Price is ₹ 4.25 Lakh, Hyundai Santro Price is ₹ 4.89 Lakh, Maruti Suzuki Alto K10 Price is ₹ 3.99 Lakh and Maruti Suzuki Alto 800 Price is ₹ 3.39 Lakh.

Which car should I buy under 5 lakh? ›

Top 5 Cars Under 5 Lakh
ModelPrice in New Delhi
Renault KWIDRs. 4.64 - 5.99 Lakh*
Maruti Alto 800Rs. 3.39 - 5.03 Lakh*
Maruti Alto K10Rs. 3.99 - 5.83 Lakh*
Maruti EecoRs. 4.63 - 5.94 Lakh*
1 more row

Which car is best between 4 to 5 lakh? ›

Popular Cars Under 5 Lakhs in India
  • 2.6. | 71 reviews. Maruti Alto K10. Rs. ...
  • 3.6. | 4403 reviews. Maruti Alto. Rs. ...
  • 3.6. | 977 reviews. Renault KWID. Rs. ...
  • 3.7. | 439 reviews. Maruti Suzuki S Presso. Rs. ...
  • Filter by Body Type. Hatchback.
  • 3.6. | 921 reviews. Maruti Suzuki Eeco. ...
  • 3.8. | 1413 reviews. Rs. ...
  • Filter by Brand. Maruti Suzuki. Strom Motors.

Which car is best for 5 members family? ›

Top 10 5-Seater Cars

The prices for the top 5 popular 5 seater cars are:BYD Atto 3 Price is ₹ 33.90 Lakh, Hyundai Venue Price is ₹ 7.53 Lakh, Mahindra XUV700 Price is ₹ 13.45 Lakh, Maruti Suzuki Grand Vitara Price is ₹ 10.45 Lakh and Maruti Suzuki Swift Price is ₹ 5.91 Lakh.

Which car is best for family trip? ›

List of the best family cars in India
  • Tata Tigor. Rs. 6 lakh to Rs. ...
  • Maruti Suzuki Swift. Rs. 6 lakh to Rs. ...
  • Maruti Vitara Brezza. Rs. 8 lakh to Rs. ...
  • Tata Nexon. Rs. 8 lakh to Rs. ...
  • Toyota Innova Crysta. Rs. 18 lakh to Rs. ...
  • Kia Carens. Rs. 10 lakh to Rs. ...
  • Mahindra XUV700. Rs. 13 lakh to Rs. ...
  • Maruti Suzuki Ertiga. Rs. 8 lakh to Rs.
14 Oct 2022

Which car is comfortable for family? ›

The most popular family cars in India are Maruti Brezza, Tata Nexon, Mahindra XUV700, Toyota Innova Crysta, and Kia Carens.

Which car gives best mileage? ›

Top 10 Best Mileage Cars in India
  1. Bajaj Qute (RE60) | Mileage: 35 kmpl. ...
  2. Maruti Celerio VXI AMT | Mileage: 27 kmpl. ...
  3. Maruti Suzuki Dzire AMT | Mileage: 24 kmpl. ...
  4. Datsun Redi-GO AMT | Mileage: 22 kmpl. ...
  5. Hyundai Aura SX | Mileage: 25 kmpl. ...
  6. Tata Altroz | Mileage: 25 kmpl. ...
  7. Hyundai Grand i10 Nios | Mileage: 20 kmpl.
13 Oct 2022

Which car is best to buy in budget? ›

Best Affordable Cars in India
  • Qute. Starts at ₹ 2.64 Lakh. EMI - ₹ 5,480 pm. ...
  • Maruti Suzuki. Starts at ₹ 3.39 Lakh. EMI - ₹ 7,037 pm. ...
  • Datsun. Redi GO. Starts at ₹ 3.80 Lakh. ...
  • Maruti Suzuki. Alto K10. Starts at ₹ 3.99 Lakh. ...
  • Datsun. Go. Starts at ₹ 4.03 Lakh. ...
  • Maruti Suzuki. Starts at ₹ 4.25 Lakh. EMI - ₹ 8,822 pm. ...
  • Datsun. Go+ ...
  • Renault. Kwid.

Which car is best for all roads? ›

10 best cars to drive on Indian roads
ModelPrice (ex-showroom, Delhi)Boot space
Maruti DzireRs. 6.09 lakhs to Rs. 9.13 lakhs378 litres
Tata NexonRs. 7.39 lakhs to Rs. 13.73 lakhs350 litres
Maruti Vitara BrezzaRs. 7.69 lakhs to Rs. 11.34 lakhs328 litres
Renault DusterRs. 9.86 lakhs to Rs. 14.25 lakhs475 litres
6 more rows
7 Jun 2022

Which car is best for upper class family? ›

Best Cars for Upper middle class Family in India in Range 5 to 12 Lakh
upper Middle class CarsPrice ( 5 to 12 Lakh )
Tata AltrozRs 5.69 Lakh – Rs 9.46 Lakh
Maruti Suzuki DzireRs 5.98 Lakh – Rs 9.02 Lakh
Maruti Suzuki BalenoRs 5.89 Lakh – Rs 9.30 Lakh
Maruti Vitara BrezzaRs 7.51 Lakh – Rs 11.41 Lakh
6 more rows
7 Nov 2020

Which is the safest car in India 2022? ›

Safest Cars in India 2022: Top 20 safest cars in India with Global NCAP rating
  • Skoda Kushaq/Volkswagen Taigun (GNCAP rating: 5 stars)
  • Tata Punch (GNCAP rating: 5 stars)
  • Mahindra XUV300 (GNCAP rating: 5 stars)
  • Tata Altroz( GNCAP rating: 5 stars)
  • Tata Nexon (GNCAP rating: 5 stars)
  • Mahindra XUV700 (GNCAP rating: 5 stars)
17 Oct 2022

Which car should I buy in 2022? ›

  • Hyundai i10. Starting at Rs 1 Lakh.
  • Maruti Swift. Starting at Rs 1 Lakh.
  • Maruti Wagon R. Starting at Rs 1 Lakh.
  • Hyundai Creta. Starting at Rs 10 Lakh.
  • Mahindra XUV500. Starting at Rs 10 Lakh.
  • Toyota Fortuner. Starting at Rs 10.25 Lakh.
  • Honda City. Starting at Rs 5 Lakh.
  • Hyundai Verna. Starting at Rs 5 Lakh.

Which is the safest family car in India? ›

Tata Nexon. The Tata Nexon became the trendsetter by becoming the first made in India car to score a 5-star Global NCAP safety rating.

What car is easiest to maintain? ›

However, it should give you a way to guess how much you might spend on car maintenance.
  1. Chevrolet Silverado, 2003 to 2007. ...
  2. Honda CR-V, 1996 to 2016. ...
  3. Honda Civic, 2001 to 2016. ...
  4. Honda Accord, 2003 to 2014. ...
  5. Toyota Corolla, 1998 to 2017. ...
  6. Toyota Camry, 2008 to 2015. ...
  7. Jeep Wrangler, 2007 to 2017. ...
  8. Nissan Altima, 2008 to 2015.
27 Apr 2022

Which car is best to drive for ladies? ›

  • Maruti Swift. Price: Rs. ...
  • Maruti Dzire. Price: Rs. 6.06 lakhs to Rs. ...
  • Maruti Baleno. Price: Rs. 6.14 lakhs to Rs. ...
  • Hyundai Verna. Price: Rs. 9.32 lakhs to Rs. ...
  • Kia Seltos. Price: Rs. 9.95 lakhs to Rs. ...
  • Hyundai Creta. Price: Rs. 10.23 lakhs to Rs. ...
  • Skoda Kushaq. Price: Rs. 10.99 lakhs to Rs. ...
  • Mini Cooper 3 Door. Price: Rs. 39 lakhs.
7 Jun 2022

Which car gives maximum mileage India? ›

Its manual diesel variant gives 25.5 kmpl while manual and automatic petrol variant has a mileage of 20.4 kmpl.
Top 10 fuel-efficient cars in Indian auto market.
Car ModelFuel UsedMileage (kmpl)
Maruti Suzuki DzireDiesel28.40
Maruti Suzuki SwiftDiesel28.40
Maruti Suzuki CiazPetrol28.09
Honda AmazeDiesel27.4
6 more rows
22 Mar 2020

Which car brand has the longest mileage? ›

The company found that models from Toyota, Honda, and GMC were the most likely to last for at least 200,000 miles. German luxury cars from Porsche, Audi, and BMW were some of the least likely to be sold with 200,000 miles on the odometer, according to iSeeCars.com.

Which car is most selling in India? ›

Registering the sales of 12,321 units in October 2022, the Maruti Suzuki Dzire retook its throne of the best-selling sedan in India. The compact sedan grew its sales by 53 percent over the 8,077 units it sold during the same month in 2021.

What is the most quality car? ›

Best car manufacturers 2022
  1. Porsche – 90.74% Key points: Classic Porsche strong points make a great showing here, with top ratings for exterior, ride and handling, reliability and infotainment. ...
  2. Tesla – 90.50% ...
  3. Kia – 90.40% ...
  4. Peugeot – 89.28% ...
  5. Honda – 88.94% ...
  6. Jaguar – 88.90% ...
  7. Mazda – 88.89% ...
  8. Volvo – 88.35%
29 Jun 2022

Which car is the best of all time? ›

Top 10 Greatest Cars of All Time
  • VW Beetle. ...
  • Cord L-29. ...
  • Ford 150 Pickup Truck. ...
  • Oldsmobile F-88. ...
  • BMC Mini. ...
  • Ford Mustang. ...
  • Porsche 911. The Porsche 911 has been beloved on the racetrack and streets alike ever since it was first introduced in 1964 and is now one of the longest-standing sports cars ever. ...
  • Stay. Gateway Canyons Resort.

Which car is best for low maintenance in India? ›

Top 10 Low Maintenance Cars in India
  • Maruti Celerio.
  • Maruti Alto K10.
  • Tata Motors Nano GenX.
  • Hyundai Eon.
  • Maruti Swift.
  • Hyundai Grand i10.
  • Toyota Etios Liva.
  • Renault Duster.

Which is the No 1 car brand in India? ›

Maruti Suzuki is the No. 1 car company in India in terms of market share. Occupying almost 49% of the country's passenger car market, Maruti Suzuki is well-loved and respected throughout the country for its efficient, frugal, and affordable vehicles.

Which car is best for rough road? ›

Maruti Vitara Brezza being a compact SUV becomes a great option when travelling through bad patches is not an option. High ground clearance and tall seating position help the driver go over bad roads easily. Also, the decently comfortable cabin further helps in enhancing the overall travelling experience.

Which car is best for family 2022? ›

Best family cars to buy
  • Dacia Jogger.
  • Skoda Octavia.
  • MG4.
  • Cupra Born.
  • Hyundai Tucson.
  • Kia Niro EV.
  • Toyota Corolla.
  • Citroen C5 X.

Which car is best for 6 family members? ›

The most popular 6 Seater cars are Mahindra Scorpio-N (Rs. 11.99 - 23.90 Lakh), Land Rover Defender (Rs. 80.72 Lakh - 2.19 Cr), Tata Safari (Rs. 15.45 - 23.76 Lakh).

Which car has strong body in India? ›

While Cars which cost 20 Lakh+ are generally Sold with the same International Level Quality, Safety and 5 Star Build Safety. So - no doubts on Cars like Ford Endeavour, Toyota Fortuner, Skoda Superb, MG Gloster, Zs EV, Skoda Karoq or other cars in segment as they are just the best in Build Quality Perspective.

What car should I buy in 2022 in India? ›

Top 10 Popular Cars in 2022
Toyota Innova CrystaRs. 18.09 Lakh
Hyundai CretaRs. 10.44 Lakh
Maruti Suzuki SwiftRs. 5.91 Lakh
Tata PunchRs. 5.99 Lakh
6 more rows

What are the top 5 safest cars? ›

Below is the list of the top 10 safest new cars you can buy based on the ANCAP ratings:
  1. Mercedes-Benz CLA-Class. Average safety rating: 88% (5-stars) ...
  2. Mazda CX-30. Average safety rating: 86% (5-stars) ...
  3. Mazda3. Average safety rating: 86% (5-stars) ...
  4. Subaru Forester. ...
  5. Toyota Yaris. ...
  6. Nissan Juke. ...
  7. Ford Puma. ...
  8. Isuzu D-MAX.

Is SUV safer than sedan? ›

A recent crash test by the Insurance Institute for Highway Safety (IIHS) found that passengers of heavier, larger vehicles experience less force during an accident. Keep in mind that your driving habits are a key player in your safety while on the road. But a sedan can be just as safe as an SUV.

Which is the safest car in India today? ›

Top 10 safest cars in India by Global NCAP crash rating: Volkswagen Taigun to Tata Tigor EV
  1. Volkswagen Taigun and Skoda Kushaq. ...
  2. Tata Punch. ...
  3. Mahindra XUV300. ...
  4. Mahindra XUV700. ...
  5. Tata Altroz. ...
  6. Tata Nexon. ...
  7. Mahindra Thar. ...
  8. Honda City 4th gen.
16 Oct 2022

Which is the 5 star safety car? ›

The Tata Punch is a 5-star safety-rated car by Global NCAP. The tested model gets two airbags two airbags, seatbelt tensioners, ISOFIX anchors for children, and ABS as standard. It received a total of five stars for adult safety and four stars for child occupancy.

Is buying a car in 2022 a good idea? ›

While soaring used car prices are bad for those who can't afford a new car, they may mean 2022 is a good time to buy a car for those with a vehicle to trade in. A high trade-in price means added capital that can help reduce the finance share of purchasing a new car.

Which 5 seater car is best for long drive? ›

The most popular 5 seater cars include Maruti Brezza (Rs. 7.99 Lakh), Tata Nexon (Rs. 7.69 Lakh) and Mahindra XUV700 (Rs.
5 Seater Cars User Reviews
  • XUV700. 3.9. 248 reviews. The xuv700 is an. ...
  • Creta. 4.1. 1052 reviews. ...
  • Swift. 3.6. 694 reviews. ...
  • Punch. 3.3. 193 reviews. ...
  • Tiago. 4.1. 946 reviews.

Which car is best for upper middle class family? ›

Best Cars for Upper middle class Family in India in Range 5 to 12 Lakh
upper Middle class CarsPrice ( 5 to 12 Lakh )
Tata NexonRs 7.09 Lakh – Rs 12.79 Lakh
Tata AltrozRs 5.69 Lakh – Rs 9.46 Lakh
Maruti Suzuki DzireRs 5.98 Lakh – Rs 9.02 Lakh
Maruti Suzuki BalenoRs 5.89 Lakh – Rs 9.30 Lakh
6 more rows
7 Nov 2020

Which is the No 1 Family Car in India? ›

List of top/best family cars in India, 2021
ModelPrice (Ex-showroom Delhi)Seating Capacity
Hyundai i20Rs. 6.91 lakhs to Rs. 11.40 lakhs5
Maruti ErtigaRs. 7.96 lakhs to Rs. 10.69 lakhs7
Mahindra MarazzoRs. 12.42 lakhs to Rs. 14.57 lakhs7/8
Honda City (4th-gen)Rs. 9.29 lakhs to Rs. 9.99 lakhs5
12 more rows
7 Jun 2022

What is a good brand of car for middle class? ›

Hyundai Grand i10 Nios. Another practical offering in our list of best cars for middle class family in India 2022 is the Hyundai Grand i10 Nios. The hatchback is available with petrol and CNG options. The former comes with a 1.2L petrol engine that generates 83Ps of power and 114Nm of torque.

Which car gives better average? ›

The most popular Top Mileage Cars include BMW 7 Series (39 kmpl), Volvo XC90 (36 kmpl) and Maruti Grand Vitara (27 kmpl). The top manufacturers that produce best mileage cars are BMW, Volvo, Maruti Suzuki, Toyota, Honda.

Which car sold most in India? ›

1. Maruti Suzuki Alto. Maruti Suzuki's entry-level hatchback has made a return to the top spot with 24,844 units sold in September. The launch of the Alto K10 with a new exterior and interior design as well as the fuel efficient 1.0-litre engine has been a major boost.

What is the cheapest best car to buy in 2022? ›

10 Cheapest New Cars for 2022
  • Nissan Sentra – $20,635. View Photos. Nissan. ...
  • Kia Soul – $20,505. VIEW PHOTOS. ...
  • Hyundai Venue – $20,245. VIEW PHOTOS. ...
  • Kia Forte – $20,115. VIEW PHOTOS. ...
  • Subaru Impreza – $19,790. VIEW PHOTOS. ...
  • Hyundai Accent – $17,690. VIEW PHOTOS. ...
  • Kia Rio – $17,275. VIEW PHOTOS. ...
  • Nissan Versa – $16,205. VIEW PHOTOS.
26 Feb 2022

Which brand car is best in 2022? ›

While India's largest carmaker, Maruti Suzuki, leads the race, Hyundai Motor India came at a distant second closely followed by Tata Motors. Mahindra and Kia bagged fourth and fifth positions respectively. Maruti Suzuki sold 1,34,166 units in the domestic market in August 2022, registering a 30 per cent YoY growth.

Which car type is most popular? ›

Hatchbacks are one of the most popular car body types in terms of overall sales in India.


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