Best Cars Under 5 Lakhs in India

Last Modified: 20-February-2023

Best Cars under 5 lakhs in India

The automotive sector in India is one of the largest sectors in the country. In FYI 2021, there were approximately 2.39 million registered passenger vehicles in India. Most of these are new cars, as the number of used cars sold in India in the same period is 4.4 million. A used car is always lower in price as compared to a new car. It helps people fulfill their dream of owning a car. 

Often it’s difficult to choose from various options for used cars under 5 lakhs because the car has to fit your budget while offering you the best possible features, good mileage cars for daily commute, and unparalleled performance. This blog will help you find the best car in India within 5 lakhs with top-notch features, good mileage, and unparalleled performance.

Top 5 Cars under 5 Lakhs in India

Before you read the list we have collated, if you are planning to purchase a used car make sure you choose from a trustworthy dealer.  

1. Renault Kwid:

Renault Kwid Best Car Under 5 lakh in India

  • The Renault Kwid is among the best buys under ₹5 lakhs. 
  • The car is an entry-level hatchback from Renault that comes in four trims, RXL, RXL (O), RTX, and Climber. 
  • The car comes in manual and automatic versions and is a petrol car. 
  • It has an attractive look, and its compact design makes it ideal for Indian roads. 
  • The car offers a mileage of 16 km/pl (kilometre per litre) in the city.  
  • Renault Kwid has an engine of up to 999 cc. 
  • If you love the car, but it is out of your budget, you can look for a loan for used cars online.

2. Maruti Suzuki S-Presso:

Maruti Suzuki S-Presso Best Car Under 5 lakh in India

  • The Maruti Suzuki S-Presso has a 998 cc engine, manual, and automatic transmission and offers a mileage of 21.53 to 31.19 km/kg. 
  • S-Presso has compact dimensions and good space utilisation to seat 4 to 5 people comfortably. 
  • The car is easy to drive, with comfortable controls at the driver’s disposal. Additionally, it has a big, usable boot space and superior ride quality. 
  • Make sure you get the best possible interest rate to buy a used car with a loan.

3. Hyundai Santro:

Hyundai Santro Best Car Under 5 lakh in India

  • Hyundai has brought back its Santro car with a new design and additional features for car enthusiasts. It has a bi-fuel option (Petrol and CNG).
  • Buyers can choose from the six variants of the car.
  • The car has features like a rear window wiper plus washer, rear defogger, a rear parking camera, a beige and black theme interior, and a 6.9-inch touchscreen infotainment system. 
  • The CNG variant of the car has a fire extinguisher for passenger safety.

Additional Read: Best Ways to Improve Your Car Mileage

4. Maruti Suzuki Eeco:

Maruti Suzuki Eeco Best Car Under 5 lakh in India

  • The Maruti Eeco car comes in 4 variants. 
  • The large glass area and upright design of the car offer better visibility. 
  • It has rear sliding doors and an option for third-row seats. 
  • The car is available in petrol and CNG versions with a manual transmission. 
  • A max torque of 104.4 Nm makes the car more powerful and fuel-efficient than the earlier version.
  • The 11+ safety features, ample space, and contemporary design make it a great buy, even as a used car. 

5. Maruti Suzuki Alto 800:

Maruti Suzuki Alto 800 Best Car Under 5 lakh in India

  • Maruti Suzuki Alto 800 is a household name in India. 
  • The fuel-efficient car has light controls and is fuel efficient. 
  • It is a compact car, ideal for city traffic. The car comes in many attractive colours and has a 17.78 cm Touch Screen Infotainment System. 
  • Owners of a used car can enjoy the sharp headlights and Smart Play Studio. 
  • You will get modern features like keyless entry, Bluetooth-enabled systems, and power windows.  

When you want to buy a car but your budget is tight, you can get closer to the dream of having your favourite used car with a low interest rate loan. 


1. Which are the best Petrol cars under 5 Lakh in India?

Some top 5 cars under 5 lakhs in India are:

  1. Renault Kwid
  2. Maruti Suzuki S-Presso
  3. Hyundai Santro
  4. Maruti Suzuki Eeco
  5. Maruti Suzuki Alto 800

2. Which are the best diesel cars under 5 Lakh in India?

Here are some of the best diesel cars to buy under 5 lakhs in India:

  1. Maruti Suzuki Swift
  2. Tata Tiago
  3. Hyundai Grand i10 Nios
  4. Maruti Suzuki Celerio
  5. Mahindra KUV100
  6. Ford Figo
  7. Renault Kwid
  8. Tata Altroz
  9. Maruti Suzuki Ignis

Note: These are based on the current market price and subject to change.

3. Which are the best CNG cars under 5 Lakh in India?

Here are some popular CNG best cars in india below 5 lakhs in India:

  1. Maruti Suzuki Alto 800 CNG
  2. Datsun redi-GO CNG
  3. Tata Nano CNG
  4. Mahindra e2oPlus CNG
  5. Hyundai Santro CNG

4. Which car is best for a long drive under 5 lakhs?

Here are some budget cars under 5 lakhs in India that are considered good for long drives:

  1. Maruti Suzuki Swift
  2. Hyundai Grand i10
  3. Honda Amaze
  4. Ford Figo
  5. Tata Tiago


Sometimes it is not convenient for every person to buy a new car. In that case, second-hand or used cars can be a good option.  The easy availability of a loan for used cars makes it easier than ever before to own a car of your choice. 

Check out the used car loan interest rate from Muthoot Capital! 

About Author
Muthoot Capital Services Limited is one of India's most progressive financial companies. It is the part of Muthoot Pappachan Group which carries a legacy & trust of more than 133 years.

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