Key Takeaways

  • In terms of safety, these cars are a must-have.
  • The handling and control of these cars are worth buying.
  • The most important features to look for are the mileage and the engine specifications.
  • The price range of these entry-level cars is best suited for an average Indian.

A brief look at the Best Cars under 5 lakhs

The entry level car category in India is the most popular, as at these prices, cars are relatively more affordable to the public. Cars have always been seen as the rich person’s vehicle, and while cars might be more pricey than bikes and other vehicles, it does make good sense to invest in one. An average sized car can possibly fit a family in it, and this will make travelling with your family a lot more convenient and enjoyable.

In the price segment of under 5 lakhs, there are a lot of cars on offer, from various different brands. With so many options to choose from, it can get difficult to decide which car you should buy. To help you make your decision, we’ve curated a list of the best cars under 5 lakhs in India that you can buy. You can also take a look at the comparison table at the end to quickly compare between the vehicles you have your eye on.

Browse Dhani Finance and get interesting cashback on the best cars under 5 lakhs.

Get financing options for your car purchase from Dhani Finance with the best discounts.

Get it now

01Tata Tiago

₹ Rs. 4.99 Lakhs
  • Engine Options: 1.2-liter 3-Cyl Revotron BS6 Petrol (AMT and Manual Transmission)
  • Engine Specs: 84.4 BHP and 113 Nm Torque
  • Fuel Economy: 21 km/l

Being one of the top 10 cars under 5 lakhs, the Tata Tiago is the safest and best-handling car you can purchase in India for less than Rs 5 lakhs. The facelifted Tata Tiago received a 4-star safety rating from EURO NCAP. It is one of the best cars for Indian terrains. In addition, it has a strong presence on the road and an appealing look. You should also think about getting a Tata Tiago for its dependable build, powerful engine, and comfortable ride. The Tata Tiago is one of the most beautiful cars and it also comes with a fully digital instrument dashboard, two front airbags, electronic brake distribution and corner stability control. Furthermore, to provide more options, the company just introduced a new automatic model.

Pros
  • These small family cars have sleeker headlamps that draw inspiration from its older sibling, the Altroz.
  • The 1.2-litre Revotron petrol engine in the BS6 Tiago produces 85bhp @ 6,000rpm.
  • Being one of the most popular automobiles, its tiny size makes it a great city car for urban driving.
  • Since then, Tata has made a few tweaks to the interior of these small family cars, adding new amenities and improving the appearance.
Cons
  • The Tiago's three-cylinder engine retains vibrations even when it's parked.
4.0

“A nice and fun-to-drive car with a peppy engine. The first two gears are okay and from the third gear, the throttle gives you what you want”.

user-icon

Sajikumar

Get cashbacks when you buy your Tata Tiago with Dhani OneFreedom

Get it now

02Maruti Suzuki Wagon R

₹ Rs. 4.93 Lakhs
  • Engine Options are: 1.0-liter 3-Cyl BS6 Petrol (Manual and AMT), 1.2-liter 4-Cyl BS6 Petrol (Manual and AMT) and 1.0-litre 3-Cyl BS6 Petrol + CNG (Manual)
  • Engine Specs: 1.0-litre – 67 BHP and 90 Nm Torque and 1.2-liter – 82 BHP and 113 Nm Torque
  • Fuel Economy is: 20.52 km/l in petrol and 33 km/kg in CNG

Long, relaxing travels and luggage hauling are ideal for the Wagon R. Being one of the top 10 cars under 5 lakhs, this car's suspension settings are quite mild and tuned primarily for comfort. Both Wagon R engine options provide a fun driving experience and a punchy performance. The Wagon R is one of the most beautiful cars, is larger than all of its competitors and has class-leading passenger and cargo space. It provides the best value for money as a car. It's also one of the rare cars with a factory-installed CNG kit and excellent fuel economy, making it one of the best cars for Indian roads.

Pros
  • These small family cars have a lot of space and a lovely design, both front and back.
  • The interiors of these popular automobiles are also very well constructed.
Cons
  • It is not the best car in terms of handling.
  • The exteriors of the car don't look as good as its counterparts.
4.1

“Best car for Indian families under basic budget”

user-icon

Vinayak Balraj

Buy your Maruti Suzuki Wagon R Now, Pay Later in 3 interest-free EMIs with Dhani OneFreedom

Get it now

03Maruti Suzuki Ignis

₹ 5 lakhs
  • Engine Options: 1.2-liter 4-Cyl BS6 Petrol (Manual and AMT)
  • Engine Specs: 82 BHP and 113 Nm Torque
  • Fuel Economy: 21 km/l on petrol

The Ignis is India's most affordable premium car, priced under Rs. 5 lakh and equipped with a strong engine. The Maruti Ignis' design is unique, and some consumers enjoy it more than others. Being one of the top 10 cars under 5 lakhs, these cars inside cabins are well insulated, with hardly little engine noise penetrating. Since the Ignis is a small SUV, the driver's seat provides an excellent view. It is the best value for money car. The Ignis is easy to operate throughout the city due to its tiny size and precise steering, making it the best car for Indian roads. The biggest issue with the Ignis is the lack of cabin room for rear passengers and its divisive outward design.

Pros
  • These small family cars have a good city and highway mileage of 23 km/l.
  • These popular automobiles feel extremely stable at higher speeds.
Cons
  • It is not the best car in terms of quality improvement.
4.2

“This Car Is Fantastic, Design is cool, and the mileage is also good”

user-icon

Lakshmi Prameela

Get instant credit at no interest for your Maruti Suzuki Ignis , with Dhani OneFreedom

Get it now

04Hyundai Santro

₹ 4.76 Lakhs
  • Engine Option: 1.1-liter 4-Cy BS6 Petrol (Manual and AMT) and 1.1-litre 4-Cyl BS6 Petrol + CNG (Manual).
  • Engine Specs: 68 BHP and 99 Nm Torque.
  • Fuel Economies: 20 km/l on petrol and 30.48 km/kg on CNG.

Being one of the top 10 cars under 5 lakhs, the Hyundai Santro is the most economical vehicle in Hyundai's inventory and one of India's cheapest four-cylinder vehicles. In terms of driving, it has a smooth gearbox with short throws that makes city driving pleasant, making it one of the best value for money cars. Though it suffers at the top, Santro's engine is refined and performs in the low and mid-range. Overall, the Santro is the best car for Indian roads for under Rs. 5 lakh. However, the Hyundai Santro's lightweight body structure is one of its key drawbacks, as it results in a low safety rating. It is one of the top ten cars by Hyundai.

Pros
  • It has an impeccable fit and finish, and overall high quality materials.
  • The Santro has many features, but the standout feature is the 7-inch touch screen infotainment system.
Cons
  • It is not the best car while driving on highways.
4.5

“Very comfortable seats. Nice looking”..

user-icon

Abhijith Pratheep

Make your Hyundai Santro purchase with Dhani OneFreedom

Get it now

05 Maruti Suzuki Celerio

₹ 4.99 Lakhs
  • Engine Options: 1.0-liter 3-Cyl BS6 Petrol (Manual and AMT) and 1.0-liter 3-Cyl BS6 Petrol + CNG (Manual).
  • Engine Specifications: 67 BHP and 90 Nm Torque.
  • Fuel Economies: 23 km/l in petrol and 32 km/kg in CNG.

Unlike the Wagon R, the Celerio has a broader stance, making it particularly stable at high speeds. The suspension of the Celerio is neither too stiff nor too soft. It can effortlessly absorb road bumps while maintaining a planted sensation at speeds above 100 km/h. It is one of the most beautiful cars. It has a powerful engine and agile handling that immediately establishes it as one of the top entry-level performance cars. It is one of the best value for money cars. In terms of ride quality and handling, it is the best car for Indian roads. Being a reasonably priced premium product in the market, the Celerio lacks amenities like the digital instrument dashboard and LED/projector headlights.

Pros
  • Plenty of room
  • It's fine to be average.
  • The dashboard is excellent.
Cons
  • The back seat is not particularly comfortable.
  • The pickup isn't great.
3.5

“It's a good car for city driving and short highways”.

user-icon

Mohan Raj

Get cashbacks when you buy your Maruti Suzuki Celerio with Dhani OneFreedom

Get it now

06Renault Kwid Facelift

₹ 4.11 lakhs
  • Engine Options: 0.8-liter 3-Cyl BS6 Petrol (Manual) and 1.0-liter 3-Cyl BS6 Petrol (Manual and AMT).
  • Engine Specifications: 0.8-litre – 53.2 BHP and 72 Nm Torque and 1.0-litre – 67 BHP and 91 Nm Torque.
  • Fuel Economy: 25.17 km/l for 0.8-liter engine and 23.01 km/l for 1.0-liter engine.

The 2021 Renault Kwid facelift is one of India's greatest cars under Rs 5 lakh in style and visual appeal. The Renault Kwid has been overhauled with a new front and rear end, increased weight and 14-inch wheels. It is one of the top ten cars for the first time buyers. The Renault Kwid's riding quality and a list of features such as a touch screen, reverse parking camera, and a digital console make it stand out. These features make it one of the best SUVs to buy. However, unlike its competitors, the Renault Kwid is one of the most beautiful cars.

Pros
  • A top SUV in the market, its touchscreen system has always been one of its USPs.
  • The front end of these good looking cars has been completely redesigned, with LED daytime running lights, a new grille, and low-set headlights that better illuminate the road.
  • Although the Kwid is a top SUV, it is still a compact car with a modest footprint.
Cons
  • There are no storage areas for the rear passengers in the doors or the centre armrest.
4.0

“Best in Entry-level car in this segment, superb & amazing control while driving”

user-icon

Nandha Kumar

Buy your Renault Kwid Facelift, Pay Later in 3 interest-free EMIs with Dhani OneFreedom

Get it now

07Alto 800

₹ Rs. 3.15 Lakhs
  • Engine Options: 0.8-liter 3-Cyl BS6 Petrol (Manual) and 0.8-liter 3-Cyl BS6 Petrol + CNG (Manual).
  • Engine Specifications: 40.3 BHP and 60 Nm Torque on CNG and 47.3 BHP and 69 Nm Torque on Petrol.
  • Fuel Economies: 25 km/l in petrol and 33 km/kg in CNG.

With millions of units each year, this is India's best-selling vehicle. The Alto 800 is a city car with excellent fuel economy and manoeuvrability. In terms of features, the Alto 800 is quite basic, but higher trims do have touch screen functionality. It is one of the top ten cars for people who want to buy a low-budget car. However, the engine performance is similarly subpar because the Alto 800 is only designed to be driven at modest speeds. The Alto 800 is one of the most beautiful cars and is also a relatively basic vehicle with a subpar interior and ride. Its inner cabin space is substantially smaller, and a lot of engine noise infiltrates the cabin, making it quite noisy at high speeds.

Pros
  • In terms of long-term reliability, the Maruti Alto 800 is one of the best cars in the market.
  • These good looking cars' suspension setup is designed to be softer, resulting in a comfortable ride.
  • The Alto 800 is a breeze to drive, thanks to its small size and excellent visibility.
Cons
  • The Alto 800 is not a particularly large vehicle in dimensions, translating to a cramped interior.
  • The Maruti Alto 800's construction quality should have been better.
4.0

“Low maintenance, good mileage. Comfort level is also good”

user-icon

Devraj Balu

Get instant credit at no interest for your Alto 800, with Dhani OneFreedom

Get it now

08Maruti Suzuki S-Presso

₹ Rs. 3.78 Lakhs
  • Engine Options: 1.0-liter 3-Cyl BS6 Petrol (Manual and AMT) and 1.0-liter 3-Cyl BS6 Petrol + CNG (Manual).
  • Engine Specifications: 60.7 BHP and 90 Nm Torque.
  • Fuel Economies: 22 km/l in petrol and 30 km/kg in CNG.

Maruti Suzuki's S-Presso is a small SUV that looks like a cross between the Alto K10 and the Wagon R. The S-Presso is compact and has the same engine as its Maruti siblings. As a result, it offers rapid acceleration and spirited performance over the rpm range. It is one of the top ten cars. However, the handling of the S-Presso is identical to that of the previous-generation Wagon R. As a result, S-Presso may experience some body roll when turning at high speeds. The Maruti S-Presso is one of the most beautiful cars and its interior quality and cabin space are comparable to other Maruti cars in its segment, making it one best SUV to buy.

Pros
  • These good looking cars boast a spacious cabin with adequate space for four grown-up persons to sit comfortably inside.
  • This engine has a solid track record and provides excellent vehicle performance, making it the best SUV to buy.
  • The Maruti S-Presso is a high value for money product when you consider the entire package, which also makes it the best SUV to buy.
Cons
  • The Maruti S-Presso is a light vehicle with a lack of refined driving qualities.
  • The S-Presso's suspension isn't very well-tuned, and the vehicle's ride-handling balance suffers as a result.
4.5

“Good ground clearance, smooth driving, all the features are good”

user-icon

Daksha Vasudev

Make your Maruti Suzuki S-Presso purchase with Dhani OneFreedom

Get it now

09Renault Triber

₹ Rs. 5 Lakhs
  • Engine Option: 1.0-liter 3-Cyl BS6 Petrol (Manual AMT).
  • Engine Specifications: 1.0-liter 72 BHP and 96 Nm of Torque.
  • Fuel Economies: 20 km/l.

Being one of the best cars under 5 lakhs, the Renault Triber is known for two things: its spacious interior and low price. Renault Triber is a 7-seater subcompact MUV with a 1-litre 3-cylinder engine. These great cars have excellent handling and riding comfort. It is one of the top ten cars in India. This car is one of the most beautiful cars and it comes with skinny 15-inch tyres as standard on the base model, which costs Rs. 4.99 lakh (ex-showroom). The wheel configurations of these great cars are adequate for city driving, but above 120 km/h, the driver will begin to lose confidence when changing lanes. on, with three gears in the front and seven in the back.

Pros
  • This seat of this top SUV can accommodate seven people or swallow more luggage than you can carry.
  • The front door pockets of these good looking cars are generously sized and well-designed to accommodate large bottles.
  • This top SUV performs admirably in terms of seating, functionality, and spaciousness.
Cons
  • The motor of the Triber can be heard right away. It also has a whiny sounding engine rather than a throaty one.
4.5

“Good car, nice performance, affordable price range”

user-icon

Jai Sathya

Get cashbacks when you buy your Renault Triber with Dhani OneFreedom

Get it now

10 Datsun Redi Go

₹ Rs 3.83 Lakhs
  • Engine Options: 0.8-liter 3-Cyl BS6 Petrol (Manual) and 1.0-liter 3-Cyl BS6 Petrol (Manual and AMT).
  • Engine Specs: 0.8-liter – 53.2 BHP and 72 Nm Torque and 1.0-liter – 67.05 BHP and 91 Nm Torque.
  • Fuel Economy: 21 km/l for the 0.8-liter engine and 22 km/l for the 1.0-liter engine.

Being one of the best cars under 5 lakhs, the new generation Datsun Redi Go features numerous internal and exterior improvements. However, it retains the previous generation's engine and chassis, so there isn't much of an upgrade there. The Datsun Redigo has the maximum ground clearance in its class (184 mm), a touch screen infotainment system with a reverse parking sensor, and LED DRLs on the front end. These great cars come with two engine choices: a 0.8-litre and a 1.0-litre. Both of these engines are three-cylinders, with the AMT option available exclusively on the 1.0-litre model. The 0.8-litre engine can reach speeds of 80 km/h. If you need more power, the 1.0-litre engine of these great cars are the way to go.

Pros
  • The Datsun Redi-GO is one of the most affordable cars on the market right now, with a starting price of just Rs 2.83 lakh (ex-showroom, Delhi) and is marketed as a well-packaged product by the brand in the Indian market.
  • The windshield is manufactured in a way so as to improve the overall visibility.
  • The new Datsun Redi-GO BS6 has a maximum boot capacity of 222 litres, significantly more than competitors such as the Maruti Alto 800.
Cons
  • The Datsun Redi GO's high-speed characteristics are harmed by its softer suspension configuration and lofty stance, making it a better car for city driving.
  • Despite their high VFM and practicality, Datsun automobiles do not have a high resale value compared to direct competitors.
4.0

“Good ground clearance, headroom is nice, zippy, less engine noise”

user-icon

Vikram Bholnath

Get the best cars under 5 lakhs suited for yourself at an easy and interest-free EMIs free cashback card from Dhani Finance.

Buy your Datsun Redi Go Now, Pay Later in 3 interest-free EMIs with Dhani OneFreedom

Get it now

Comparison Table For Specs Of The Best Cars under 5 lakhs

Model Brand Ex-showroom Price
Tata Tiago Tata Rs. 4 - 7 lakh
HMaruti Suzuki Wagon R Maruti Suzuki Rs. 4.50- 6.50 lakh
Maruti Suzuki Ignis Maruti Suzuki Rs. 4.95- 7.36 lakh
Hyundai Santro Hyundai Rs. 4.76- 6.44 lakh
Maruti Suzuki Celerio Maruti Suzuki Rs. 4.65 – 5.90 lakh
Renault Kwid Facelift Renault Rs. 3.32-5.48 lakh
Alto 800 Maruti Rs. 2.99- 4.60 lakh
Maruti Suzuki S-Presso Maruti Suzuki Rs. 3.78- 5.26 lakh
Renault Triber Renault Rs. 5.30- 7.82 lakh
Datsun Redi Go Datsun Rs. 3.83- 4.95 lakh

Avail a free cashback card from Dhani OneFreedom and purchase your favourite best cars under 5 lakhs.

Dhani Finance has got you covered in financing your car purchase at easy EMIs.

Get it now

Financing Options Available for the Best Cars under 5 lakhs

  1. Payment with debit card EMI

    You may easily purchase the best cars under 5 lakhs by making payments with your debit card EMI. Your interest rate and EMI amount are determined by the amount of time you have to repay your debt. The amount of the debit card EMI payments will be taken from your account immediately on the due date of the EMI repayment.

  2. Payment by Credit Card EMI

    Payment by credit card EMI is identical to payment by debit card EMI, with the added benefit of a 0% interest rate for a defined time. Additionally, the credit card offers cash back rewards based on the service provider's policies and the amount of money spent.

  3. Payment by Paylater on Flipkart

    Using Flipkart's PayLater feature, you can pay later based on your purchase history and credit score. The initial sum is Rs. 10,000, and it increases by the quantity of money refunded and the frequency with which you shop. Essentially, it allows you to purchase for free on Flipkart and spread the cost over a predetermined length of time without paying interest charges.

  4. Payment by Dhani One Freedom

    A new and original alternative for acquiring the best cars under 5 lakhs, Dhani One Freedom is one of the market's newest and most innovative options. The Dhani One Freedom card has many of the same features as a credit card.

Get amazing offers and cashback from Dhani OneFreedom and buy the best cars under 5 lakhs.

Get credit card services at affordable rates from Dhani Finance!

Get it now