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Affordable Auto Choices: Top Picks Under 5 Lakhs in India

Updated On Oct 22, 2023

Top Cars Under 5 Lakhs in India 2023

India has a growing middle class, and as more individuals aspire to purchase their own automobiles, the desire for inexpensive cars has never been stronger. The Indian automotive sector offers several options for budget-conscious buyers. If you're looking for a vehicle under Rs. 5 lakh, you're in good fortune. 

Best Cars Under 5 Lakh in India

It's important to consider car insurance when determining the price in this price bracket.  This article will analyze the biggest and greatest cheap cars available in India, each of which provides a distinctive mix of fashion, convenience, and price.

Tata Tiago - ₹4.7 - 7.65 Lakhs

The Tata Tiago has made waves in the Indian automobile market since its launch. It delivers an appealing value proposition at a price range of 4.7 - 7.65 lakhs. The Tiago has something for everyone with its elegant style, feature-packed cabin, and variety of engine options.


  • Engine: 1.2-liter gasoline engine
  • Power: 86 horsepower
  • Torque: 113 Newton-meters
  • Gearbox options include a 5-speed manual or an automatic manual transmission (AMT).

CNG Mode:

  • Reduced Output: 73.5 horsepower
  • Reduced Torque: 95 Newton-meters

Transmission: Available with the 5-speed manual option


  • 7-inch touchscreen infotainment system with Apple CarPlay and Android Auto support
  • Digital driver's display
  • 8-speaker sound system
  • Automatic climate control
  • Cooled glovebox

Affordable Auto Choices: Top Picks Under 5 Lakhs in India

Nissan Magnite - ₹4.99 - 9.9 Lakhs

The Nissan Magnite is a newcomer to the Indian market, but it has swiftly acquired appeal because of its eye-catching appearance and reasonable cost, which starts at 4.99 lakhs. It is one of the best car under 5 lakh, making it an appealing alternative for consumers on a tight budget.


Engine Options:

  • 1.0-liter naturally aspirated engine
  • Power: 72PS
  • Transmission: 5-speed manual
  • Fuel Efficiency: 18.75kmpl

1.0-liter turbo-petrol engine

  • Power: 100PS
  • Transmission Options: 5-speed manual or CVT

Fuel Efficiency:

  • With CVT: 17.7kmpl
  • With Manual: 20kmpl


Infotainment System: 8-inch with Apple CarPlay and Android Auto

  • Digital Instrument Display: 7-inch
  • Cruise Control: Available
  • Air Purifier: Included
  • LED Headlights: Equipped
  • Keyless Entry with Push-Button Start: Included

Safety Features:

  • Dual Airbags
  • ABS with EBD
  • 360-degree Camera
  • Rear Parking Sensors
  • Tire Pressure Monitor
  • Electronic Stability Control

Tech Pack (for XV, XV Premium, and XV Premium (O) models):

  • Air Purifier
  • Wireless Phone Charger
  • Ambient Lighting
  • Puddle Lamps
  • JBL Sound System

GEZA Special Edition:

  • Infotainment System: 9-inch with wireless Apple CarPlay and Android Auto
  • Ambient Lighting
  • Rear Parking Camera with Trajectory Guidelines
  • JBL Sound System

Maruti Suzuki Alto K10 - ₹3.99 - 5.83 Lakhs

When it comes to affordability and reliability, Maruti Suzuki is the best car under 5 lakhs in India. The Alto K10 is a popular choice in the entry-level segment, with prices ranging from ₹3.99 - 5.83 lakhs.


  • Engine Option: Single engine choice

  • Transmission Options: 5-speed manual or 5-speed AMT

  • Review Focus: AMT version

  • Preference for Most Alto Buyers: AMT likely preferred

  • Gear Shifts: Not the smoothest, especially during upshifts

  • Effectiveness: Gets the job done effectively

  • User-Friendly: Convenient choice, especially for new drivers and those switching to automatic

  • Smooth Operation: Operates smoothly under partial throttle

  • Gear Shift Noticeability: Gear shifts are hardly noticeable for the most part.


  • Platform Transition: Shifted to the Heartec platform

  • Weight Reduction: The New K10 is lighter than the previous version

  • Engine Update: Upgraded to K10C engine

  • Fuel Efficiency Improvement: Marginal improvement compared to the K10B engine

Fuel Efficiency Ratings:

  • Manual Version: 24.39kmpl

  • AMT Variant: 24.90kmpl

Maruti Suzuki Alto - ₹3.15 - 4.82 Lakhs

The Alto is a good alternative if you're seeking for an even more affordable option from Maruti Suzuki. It is one of the most cheap and best CNG cars under 5 lakhs, with pricing beginning at 3.15 lakhs.


Engine: 0.8-liter petrol engine

  • Power: 48PS
  • Torque: 69Nm
  • Transmission: 5-speed gearbox

CNG Mode:

  • Reduced Output: 41PS
  • Reduced Torque: 60Nm


  • Petrol: 22.05kmpl
  • CNG: 31.59km/kg


  • Infotainment: 7-inch touchscreen with Android Auto and Apple CarPlay
  • Minimalistic Interior: Simple and straightforward design
  • Functional: Efficiently designed for practicality
  • Basic Audio System: Equipped with a straightforward audio system
  • Comfortable Seats: Seats designed for comfort during commutes
  • No-Frills: Lacks extravagant features
  • Affordable Transportation Solution: Ideal for budget-conscious buyers
  • Maruti Suzuki Alto: A cost-effective and practical choice

Renault Kwid - ₹4.07 - 6.45 Lakhs

Renault Kwid is another popular choice among budget-conscious Indian car buyers. With prices ranging from ₹4.07 - 6.45 lakhs, the Kwid offers a spacious cabin and a striking SUV-inspired design.


Engine: Single petrol engine option

  • Power Output: 68 horsepower
  • Torque: 91 Newton-meters
  • Transmission options include a 5-speed manual transmission or a 5-speed automated manual transmission (AMT).


  • Infotainment System: 8-inch touchscreen with Android Auto and Apple CarPlay
  • Digital Instrument Display: Featuring a multi-info display
  • Climate Control: Manual air conditioner
  • Power Windows: Front power windows
  • Convenience: 12V charger for devices
  • Security: Remote locking
  • Enhanced Visibility: LED daytime running lights (DRLs)

Safety Features:

  • Dual Airbags
  • ABS with EBD
  • Rear Parking Sensors with Camera
  • Standard Features:
  • Electronic Stability Program (ESP)
  • Hill Start Assist
  • Traction Control
  • Tire Pressure Monitoring System

Safer and More Stable Driving Experience: Ensured with these features


In a country like India, where affordability is a key factor in car buying decisions, these top picks under 5 lakhs provide an excellent balance between cost and features. Whether you're looking for a best mileage car under 5 lakh like the Maruti Suzuki Alto or a more stylish and feature-packed option like the Nissan Magnite, there's a vehicle to suit every budget and preference. 

To make the best selection for your unique situation, consider your individual needs, such as fuel efficiency, size, and features. With the Indian automobile industry continually evolving, these low-cost alternatives present a compelling reason to consider upgrading your car without breaking the bank.


  • Which car on the list is the most economical?

Ans. The Maruti Suzuki Alto is one of the cheapest options, with prices ranging from 3.15 to 4.82 lakhs. It is renowned for both its fuel efficiency and low cost of ownership.

  • Are there any CNG options available among these top picks?

Ans. Yes, both the Maruti Suzuki Alto K10 and Maruti Suzuki Alto offer CNG variants. These are fantastic options for anyone trying to save money on gas.

  • What elements should I consider while looking for a cheap car?

Budget, desired features, fuel efficiency, maintenance expenses, and insurance are all factors to consider. Each of these factors can impact your overall ownership experience.

  • Is car insurance necessary for affordable cars?

Ans. Yes, regardless matter how expensive the automobile is, auto insurance is necessary. In the case of an accident, theft, or damage, it safeguards you. You may customize comprehensive insurance packages to fit your needs and price range.

  • Which car among these options offers the best mileage?

Ans. The Maruti Suzuki Alto K10 CNG variant is known for its exceptional mileage. It's a smart choice for those prioritizing fuel efficiency.

  • Are there any additional features or tech packs available with these cars?

Ans. Yes, some models like the Nissan Magnite and Tata Tiago offer additional tech packs with features like air purifiers, wireless phone chargers, ambient lighting, puddle lamps, and premium sound systems. These can enhance your driving experience but may come at an additional cost.

  • Which car in the sub-5-lakh category offers the most advanced features and technology?

Ans. The Nissan Magnite and Tata Tiago are known for offering advanced features such as touchscreen infotainment systems, smartphone connectivity, and safety features, making them technologically advanced choices in this price range.


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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