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Looking for budget-friendly cars in India? Check out the best cars under 5 lakhs in 2025 with features, mileage, and price details on BestGaddi. Want to buy your first car or a reliable city companion to help you navigate city roads within a fixed budget? Lucky you! In the year 2025, the Indian auto market has quite a few good options regarding the best cars under 5 lakh. From compact hatchbacks to mini-SUV-inspired rides, today’s budget cars in India do not solely mean the cheapest option they can buy; there is comfort, safety and performance that come along with them.
Let’s see which are all the terrific contenders in that low price car list – all under 5 lakh rupees, making them a preference for first-time buyers, students, and city commuters.
1. Maruti Suzuki Alto K10
The Alto K10 has always been one of the most trusted names in the Indian automobile industry. This fuel-efficient engine and no-frills design help this car maintain its lead in the budget vehicles under the 5 lakh category. The 1.0L K-series petrol engine boasts an impressive mileage of approximately 24.39 km/l, making it a perfect choice for a daily car.
At a price of ₹4.23 lakh (ex-showroom), the Alto K10 is arguably not only one of the cheapest cars in India but also one of the most trustworthy. Compact dimensions, a smooth drive, and low maintenance costs make it a perfect option for an entry-level hatchback.
2. Renault Kwid
Renault Kwid is here to tell you that not all eye-catching things need to be overly expensive. It boasts a brawny front grille, LED DRLs, and a high ground clearance that bring in SUV vibes to a compact hatchback. It easily qualifies as a candidate for the 5 lakh under car category and comes with great features.
Price: ₹4.70 lakh (Ex-showroom)
Key Highlights:
- Available with 0.8L and 1.0L engine options
- A fuel efficiency of 25 km/l (ARAI-claimed)
- Touchscreen infotainment with Android Auto & Apple CarPlay
This one ticks all boxes for someone in search of a stylish yet economical city car. It holds a very firm place in India’s low-price car list.
3. Maruti Suzuki S-Presso
S-Presso is another one of those great budget cars in India for people who prefer a slightly more elevated driving seat and road visibility. It has the traditional tall-boy stance with an imposing 180mm clearance and a tried and tested Maruti 1.0L engine, offering a blend of practicality with personality.
Starting from ₹4.26 lakh, the S-Presso comes with a manual and AMT option, endowing a choice to the driver this way or that. Despite its compact form on the exterior, the cabin feels roomy, thus justifying its place in the low-price car list with excellent value for money.
4. Tata Tiago
The Tata Tiago well and truly, especially its base variant, spills into the range of just below ₹5 lakh but offers more in terms of build and crash safety than any car in its class. It is also a 4-star NCAP rating – a great bet for any new car under 5 lakh.
Price: ₹5.00 lakh (Ex-showroom).
Key Highlights:
- 1.2L Revotron Engine
- Dual Front Airbags and Strong Structure
- Excellent Infotainment and Finish (in Higher Trims)
This is the car for someone who certainly doesn’t compromise with structure and style as they shop around in the budget vehicles under 5 lakh segment.
5. Upcoming Renault Kwid Facelift
Renault is preparing for an update to the Kwid in 2025, strengthening its hold on the 5 lakh under car model segment. This revamped version is expected to come with several cosmetic updates, advanced infotainment features, and improved interiors, while retaining the same fuel-efficient engine options. It will be launched soon.
This model, which is expected to have a starting price of around ₹5 lakh, is likely to be one of the most fresh entries into the category. The category under which this model comes is the cheapest cars in India.
Features That Make Budget Cars Worth Buying
Today budget cars in India have become a lot smarter than their forerunners. Even the new car under 5 lakh rupees range is filled with necessary features that make them safe, tech-savvy and comfortable, such as:
- Dual airbags and ABS with EBD- Safety Features
- Fuel efficiency exceeds 20 km/l
- Touchscreen infotainment system
- Space in Compact Cabin
- Easy in handling and maintenance
If you are picking a car from the low-price car list, consider some features to get better value for money in your purchase.
Tips for Choosing the Right Budget Car
Choosing amongst numerous budget cars under 5 lakh may seem confounding, but it becomes easy with a few smart steps:
- Petrol vs. CNG-Fuel comparison
- Engine power vs. daily requirement
- Manual or automatic city drive
- Resale value and brand service network
- Use an online car comparison tool before booking
These pointers will help you to choose the best car under 5 lakh that matches your lifestyle and future goals.
Conclusion
In 2025, the Indian automobile market is providing great alternatives regarding some of the cheapest cars in India. From the ever-reliable Alto K10 to the fashionable Kwid and the Tiago, which boasts the safest features, all cars on the low price car list are well-tailored for budget considerations.
If you are actually planning to get a new car under 5 lakhs, it cannot be a better time than this as value-for-money is being redefined with affordable-to-see, feature-loaded, and fun-to-drive cars. So just set out for a look at it; pick one from India’s best budget cars in 2025.
