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Secure Your Car With The Super Car Insurance Plan!

Believe it or Not! Save upto* 75% on TATA AIG Car Insurance

Insure your  Brand New Car

Best Cars Under 5 Lakhs in India

  • 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.

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.

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

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.


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.

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Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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