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The Indian Automobile sector thrives at its best with Foreign Direct Investments, surging exports, and various green initiatives. This makes the country a primary destination for global players. The automobiles sector is one of the major contributors for the economic growth of the country. And it is expected that the Indian Automobile Market will turn the third largest one in terms of volume in 2026.
The Indian automobile market is very diverse, offering a wide range of cars to suit different budgets and preferences. If you're looking for a car that costs less than ₹5 lakh, you have many excellent options to choose from. You will find any car irrespective of your priority being fuel efficiency, comfort, or a stylish design.
This guide will explore some of the best cars available in India under ₹5 lakh in 2025. We will provide you with detailed information about their features, specifications, and what makes each car stand out from the competition.
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6+ Best Car Under 5 Lakh in India
1. Maruti Alto K10
Key Highlights:
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Price Range: Starting from ₹3.99 lakh
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Engine: K10C Series Engine
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Mileage: 24.39 km/l
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Seating Capacity: 5
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Transmission: Manual and AMT optionsThe Maruti Alto K10 is a compact and efficient car perfect for urban driving. Known for its affordability and reliability, it is one of India’s best-selling hatchbacks. This affordable entry-level car gives the adequate space, finishing, and equipment for the price you pay. This car also comes with additional benefits of fuel efficiency, good performance along with Maruti’s strong customer centric point of after-sales service. The latest model in 2025 comes with a youthful and contemporary design, improved interiors, and advanced features like a 7-inch SmartPlay infotainment system.
Why Choose Maruti Alto K10?
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Remarkable fuel efficiency, making it a top choice for everyday commutes.
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Affordable maintenance and widespread service network.
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Compact design for easy manoeuvring in traffic.
2. Renault KWID
Key Highlights:
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Price Range: Starting from ₹4.70 lakh
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Engine: 0.8-litre and 1.0-litre petrol options
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Mileage: 22-23 km/l
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Seating Capacity: 5
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Transmission: Manual and AMT options
The Renault KWID is a stylish and feature-rich hatchback that offers an SUV-inspired design. Its high ground clearance and bold stance make it a popular choice among first-time car buyers. With features like an 8-inch touchscreen infotainment system, rear parking camera, and digital instrument cluster, the KWID is a value-for-money offering.
Why Choose Renault KWID?
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SUV-inspired design with a bold look.
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Loaded with modern features, especially at this price point.
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Compact yet spacious interiors for a comfortable ride.
3. Bajaj Qute (RE60)
Key Highlights:
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Price Range: Starting from ₹2.63 lakh
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Engine: 216cc single-cylinder engine
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Mileage: 35 km/kg (CNG)
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Seating Capacity: 4
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Transmission: 5-speed manual
The Bajaj Qute (RE60) is a unique quadricycle designed for intra-city travel. Its compact size and excellent mileage make it an economical option for budget-conscious buyers. It’s particularly suitable for short commutes and comes with a lightweight frame for better efficiency.
Why Choose Bajaj Qute?
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Unbeatable fuel efficiency.
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Extremely compact and easy to park.
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Ideal for city driving and short distances.
4. Maruti S-Presso Std
Key Highlights:
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Price Range: Starting from ₹4.25 lakh
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Engine: 1.0-litre petrol engine
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Mileage: 21.7 km/l
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Seating Capacity: 5
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Transmission: Manual and AMT options
The Maruti S-Presso is a mini-SUV that stands out with its high seating position and bold design. Its spacious cabin, combined with an efficient engine, makes it a great choice for those looking for a blend of style and practicality. Safety features like dual airbags and ABS with EBD add to its appeal.
Why Choose Maruti S-Presso?
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High ground clearance for better road visibility.
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SUV-inspired design at an affordable price.
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Trusted Maruti Suzuki reliability and service network.
5. Tata Tiago
Key Highlights:
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Price Range: Starting from ₹5 lakh
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Engine: 1.2-litre Revotron petrol engine
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Mileage: 19.8 km/l
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Seating Capacity: 5
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Transmission: Manual (Please check once)
The Tata Tiago is a premium hatchback that offers an excellent balance of performance, comfort, and safety. With features like a Harman infotainment system, dual airbags, and ABS, it’s one of the most feature-packed cars in this segment. The 2025 model also comes with enhanced safety standards, making it a great option for families.
Why Choose Tata Tiago?
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Premium interiors and high build quality.
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Advanced safety features.
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Superior ride comfort and handling.
6. Maruti Alto 800
Key Highlights:
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Price Range: Starting from ₹3.54 lakh
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Engine: 0.8-litre petrol engine
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Mileage: 25.0 km/l Seating Capacity: 5
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Transmission: Manual
The Maruti Alto 800 remains a favourite among entry-level car buyers due to its affordability, simplicity, and low running costs. It’s a no-frills vehicle designed to get the job done efficiently. With its compact design and reliable performance, it’s an excellent choice for first-time car buyers.
Why Choose Maruti Alto 800?
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Most affordable car in the segment.
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Proven reliability and widespread service network.
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Easy to maintain with low ownership costs.
Disclaimer: All the features, rates, and other information specified above are sourced when this page was written and are subject to change. For exact information, refer to the respective car dealer’s website or contact them.
Features to Look for in Cars Under ₹5 Lakh
When buying a car in this price range, consider the following features to ensure you get the best value for your money:
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Fuel Efficiency: Look for cars with high mileage to save on running costs.
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Safety Features: Dual airbags, ABS, and rear parking sensors are essential.
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Comfort: Ensure adequate cabin space and comfortable seating for long drives.
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Infotainment System: A touchscreen infotainment system with connectivity options like Android Auto and Apple CarPlay is a bonus.
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Build Quality: Opt for cars with good safety ratings and durable build quality.
Summing Up,
Each of the cars listed above brings something unique to the table. While the Maruti Alto K10 and Alto 800 are perfect for budget-conscious buyers, the Tata Tiago and Renault KWID cater to those looking for advanced features and premium build quality. The Bajaj Qute stands out for its unmatched fuel efficiency, while the Maruti S-Presso offers an SUV-inspired design at an affordable price.
Carefully evaluate your priorities, such as mileage, comfort, safety, and design, to make an informed decision. With the options listed above, you can confidently drive home a car that perfectly suits your needs and budget.
FAQs on Cars below 5 Lakhs
1. Which is the most affordable car under ₹5 lakh in India?
The Bajaj Qute (RE60) is the most affordable car under ₹5 lakh, starting at ₹2.63 lakh.
2. Which car offers the best mileage under ₹5 lakh?
The Bajaj Qute provides the best mileage at 35 km/kg (CNG), making it an excellent choice for fuel efficiency.
3. What is the best car for a family under ₹5 lakh?
The Tata Tiago, with its spacious interiors, advanced safety features, and premium build quality, is ideal for families.
4. Which car has an SUV-inspired design under ₹5 lakh?
The Renault KWID and Maruti S-Presso offer SUV-inspired designs, making them stylish and practical choices.
5. Are there automatic transmission options under ₹5 lakh?
Yes, cars like the Maruti Alto K10, Renault KWID, and Tata Tiago offer AMT variants under ₹5 lakh.
6. Which car is best for city driving?
The Maruti Alto K10 and Bajaj Qute are perfect for city driving due to their compact size and ease of maneuverability.
7. What safety features can I expect in cars under ₹5 lakh?
Most cars in this segment come with essential safety features like dual airbags, ABS with EBD, and rear parking sensors.
Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.