Planning to buy a car under ₹5 lakh? These are your options

Despite India's new-age car buyers showing increased preference towards premium offerings, the market is still dominated by affordable entry-level models. Maruti Suzuki is at the forefront of the tide with its affordable models. Being a budget-sensitive market, India witnesses a huge demand for these entry-level cars, not only from first-time buyers but from repeat customers as well.

When buying a new personal car, budget-conscious customers often search with the keyword, ‘cars under ₹5 lakh’. If you also are one of the budget-sensitive customers and looking for a practical and value-for-money personal car for regular commuting, here are your best options under ₹5 lakh price slab.

Maruti Suzuki Alto

Indomitably the bestselling car in India, Maruti Suzuki Alto, is a small hatchback that is well-suited for regular commuting, ensuring a value-for-money. The small hatchback is powered by an 800 cc frugal petrol engine capable of churning 47.3 bhp of peak power and 63 Nm of maximum torque. Priced from ₹3.39 lakh (ex-showroom), the Maruti Suzuki Alto claims to return 22.5 kmpl fuel efficiency. The Alto is very popular among first-time private buyers and repeat customers, as well as among fleet operators also.

Maruti Suzuki Alto K10

Maruti Suzuki Alto K10 is the bigger sibling of the 800 cc engine-powered Alto, and it comes energized by a slightly bigger 1.0-litre petrol engine. The Alto K10 comes at a starting price tag of ₹3.99 lakh (ex-showroom). Besides the practical petrol version, the car is available in the CNG option as well, enhancing its value-for-money appeal to customers who are worried about the vehicle's operational costs.

Maruti Suzuki S-Presso

Maruti Suzuki S-Presso can be dubbed as a micro SUV, with its boxy and upright stance. The car is small and compact, fitting perfectly for congested city traffics, ensuring easy movability, a small turning radius and requiring a small parking space. Priced from ₹4.25 lakh (ex-showroom), the Maruti Suzuki S-Presso comes powered by the same 1.0-litre K10 power mill that works under the Alto K10's hood.

Renault Kwid

Breaking the Maruti Suzuki monopoly in the sub- ₹5 lakh segment is the Renault Kwid. This small hatchback from the French automaker became the company's bestselling model in India since its inception in 2015. The stylish and eye-catching design, along with a host of upmarket features like a fully digital instrument cluster, AMT have upped its appeal. Priced from ₹4.64 lakh (ex-showroom), Kwid is a practical and affordable car for new buyers. It is available in both 800 cc and 1.0-litre engine options.

Check out Upcoming Cars in India 2025, Best SUVs in India.