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List of Best Cars Under 5 Lakhs in India

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AJ Akshay Jain 26.2.2025 5 mins

Buying a budget-friendly car in India is an important decision, especially with many options available under the ₹5 lakhs budget segment. When selecting their first vehicle, customers prefer to be aware of the price, fuel efficiency, and maintenance costs. When choosing the right car, it is equally important to get adequate car insurance online to have safety against accidents, theft, etc.

In this article, discover some of the best cars under 5 lakhs in India and understand their characteristics, mileage, and specific features.

Best cars under ₹5 lakhs in India

Some of the best cars below 5 lakhs in India are:

1. Maruti Suzuki Alto K10

·Engine: 1.0L Petrol

·Mileage: ~24 km/l

·Transmission: Manual & AMT

·Features: Power steering, ABS with EBD, dual airbags, touchscreen infotainment system

·Ex-showroom Price: Starting from ₹4 lakhs

Maruti Suzuki Alto K10 is one of the most reliable cars at the entry level in India. It provides excellent mileage, low maintenance costs, and a smooth driving experience. The compact size makes it ideal for urban driving, and Maruti's extensive service network ensures hassle-free solutions.

2. Renault Kwid

·Engine: 0.8L & 1.0L Petrol

·Mileage: ~22-23 km/l

·         Transmission: Manual & AMT

·         Features: SUV-inspired design, digital instrument cluster, touchscreen infotainment, dual airbags

·         Ex-showroom Price: Starting from ₹4.2 lakhs

Renault Kwid stands out because of the stylish, SUV-inspired look and high ground clearance. This is a great option for those looking for a feature-equipped, cheap hatchback. The car provides a huge cabin, decent mileage, and modern functions that are not usually found in this price range.

3. Maruti Suzuki S-Presso

·         Engine: 1.0L Petrol

·         Mileage: ~21 km/l

·         Transmission: Manual & AMT

·         Features: SUV-like stance, ABS with EBD, touchscreen infotainment, high ground clearance

·         Ex-showroom Price: Starting from ₹4.25 lakhs

Maruti Suzuki S-presso provides a unique micro-SUV experience in a compact car format. This is an excellent choice for buyers, thanks to its high ground clearance, light body, and affordable fuel efficiency.

4. Tata Tiago

·         Engine: 1.2L Petrol

·         Mileage: ~19-20 km/l

·         Transmission: Manual

·         Features: Strong build quality, spacious interiors, Harman-powered music system, ABS, dual airbags

·         Ex-showroom Price: Starting from ₹4.99 lakhs

Tata Tiago is a stylish and well-built hatchback bar with a solid security system. It offers a first-class driving experience with a comfortable cabin and a high-quality music system. It is an excellent option for buyers who prefer security and facilities within a cheap budget.

5. Datsun Redi-GO

·         Engine: 0.8L & 1.0L Petrol

·         Mileage: ~22-23 km/l

·         Transmission: Manual & AMT

·         Features: LED DRLs, touchscreen infotainment, driver-side airbag, compact dimensions

·         Ex-showroom Price: Starting from ₹4.1 lakhs

Datsun Redi-Go is a budget-friendly city car with a small footprint, making it perfect for narrow roads and narrow parking spaces. This car is a practical option for car buyers looking for a cheap, fuel-efficient vehicle with decent features.

6. Maruti Suzuki Celerio

·         Engine: 1.0L Petrol

·         Mileage: ~26 km/l

·         Transmission: Manual & AMT

·         Features: AMT option, safety features, improved cabin space, touchscreen infotainment

·         Ex-showroom Price: Starting from ₹5 lakhs

Maruti Suzuki Celerio provides the best fuel efficiency in the class, making it a top option for budget-conscious buyers. Its modern design and better cabin space make it a comfortable and practical alternative for urban commutes.

Factors you need to consider before buying a budget car

To buy the best car in India within 5 lakhs, a number of variables need to be carefully evaluated.

·         Fuel efficiency - Investing in a fuel-efficient car is essential to lower overall operating costs.

·         Cost of maintenance - Choose a car with easily accessible and cheap spare parts.

·         Resale Price - Maruti Suzuki and Tata cars have better resale values.

·         Safety facilities - Look for cars with advanced safety features like ABS, airbags, and stability control.

·         Comfort and features - Basic features such as power windows, music system, touch screen etc.

Final thoughts

If you are looking for affordable, fuel-efficient, and reliable cars under 5 lakhs in India, the choice of the correct budget car requires evaluation of factors such as mileage, maintenance, and safety facilities. Cars like Maruti Suzuki Altos 10, Renault Kwid, Tata Tiago, and Maruti Suzuki Celerio provide excellent value for money. However, the ownership of the car is not fulfilled without the right car insurance.

Getting the best car insurance online from a known company such as Generali Central Insurance Company Limited (Co. Ltd.) ensures financial security against accidents and unexpected damage. If you are planning to buy a budget-friendly car, make sure you choose the right car insurance plan to enjoy a safe and stress-free driving experience!

Frequently asked questions (FAQs)

1. Which is the best car under ₹5 lakhs in India for mileage?

Maruti Suzuki Celerio is considered the best car under ₹5 lakhs in India for mileage, which gives about 26.68 km/l.

2. Which car has the best safety rating below ₹5 lakhs?

Tata Tiago stands out with a 4-star Global NCAP safety rating, making it the safest option in this category.

3. Should I buy third-party or own damage car insurance?

Third party car insurance is mandatory as per the law, whereas own-damage car insurance provides more comprehensive coverage, including protection for your losses.

4. What is the best car insurance provider for budget-friendly cars?

Generali Central Insurance Company Limited (Co. Ltd.) provides different types of car insurance plans with benefits such as cashless repair facilities, additional add-on coverage, etc.

5. How is renewing car insurance possible online?

The process of renewing car insurance can be easily done online from Generali Central Insurance's hassle-free and seamless portal.

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