4 Best Cars under 5 Lakh in India in 2026

If you are short on funds but need to find the perfect vehicle, you have stumbled upon the perfect place.  

Today, India's car market offers a diverse array of options for budget-conscious buyers under 5 lakhs. Ideal for first-time buyers, small families, students, and city commuters, these cars are economical and practical. 

These budget-friendly cars excel in fuel efficiency, seating capacity, compact designs for crowded roads, and decent safety features like airbags and antilock brakes, balancing affordability with essential features.

When buying a car in India, securing car insurance is also crucial as it is mandatory by the Motor Vehicles Act of 1988. It provides financial protection against accidents, theft, and damages, safeguarding your investment. Having car insurance saves you from hefty traffic fines, licence suspension, and even legal trouble. 

Here we list out the best cars in India within 5 lakh. Have a look at the models below and check which of them suits your unique needs properly. Let’s get started!

Here are some of the most desirable cars under this price segment. All prices here are the ex-showroom price in Delhi.

1. Maruti S-Presso | Starting ₹3.50 Lakh

source: marutisuzuki

The S-Presso is another pocket-friendly hatchback option to consider if you are looking for the best car under 5 lakhs in India. The petrol model is capable of generating up to 68 PS of power. Only the VXi variant of this vehicle comes with an automatic transmission, while the others, such as the Std and LXi models, sport a 5-speed manual gearbox.

Styled like a mini SUV, it’s taller and gives the driver a higher seating position, which many prefer for better visibility on the road. It runs on the 1.0L petrol engine, so it’s fuel-friendly without compromising on performance in daily traffic. Its interior is roomy despite the compact size, and the upright stance gives more headroom, so it’s comfortable for taller passengers, too.

Key Specifications:

• Engine displacement: 998cc
• Mileage: 24.12 - 25.3 kmpl
• Seating capacity: 5
  
• Transmission: Manual/Automatic
• Fuel type: CNG/Petrol
• Body type: Hatchback
• Airbags: 2
  
• Ex-showroom price: ₹4.26 - ₹6.12 lakh
• Safety features: Reverse parking sensors, dual front airbags, ABS with EBD are important considerations for buyers in the S-presso.

2. Maruti Suzuki Alto K10 | Starting ₹3.70 Lakh

Source: marutisuzuki

Maruti Alto K10 is one of the most trusted names in the entry-level segment. The Alto K10 is available in 4 distinct variants, with both manual and automatic transmission options. You can even choose from up to 6 different shades when picking the car. At present, petrol and CNG engines power this vehicle with either a 5-speed manual transmission or a 5-speed AMT. 

Moreover, the 214-litre boot space can also prove to be handy. Seating is comfortable for short trips, and infotainment options cover the basics well. With Maruti’s wide service network and low maintenance cost, the Alto K10 is a go-to choice for buyers who want a reliable starter car within budget.

Key Specifications:

• Engine displacement: 998 cc
• Mileage: 24.39 - 24.9 kmpl
  
• Seating capacity: 5
• Transmission: Manual/Automatic
• Fuel type: Petrol/CNG
• Body type: Hatchback
  
• Airbags: 2
• Ex-showroom price: ₹3.99 - ₹5.83 lakhs
• Safety features: Dual airbags, ABS with EBD, and a driver-side airbag standard in some variants of the Alto K10

3. Renault Kwid | Starting ₹4.30 Lakh

source: renault

Another option to consider when looking for the best car under 5 lakhs in India is the Renault Kwid. Although this car has several variants, each of them sports a petrol engine. The latter option comes with a 5-speed transmission system. Power and torque ratings are limited to 54 PS and 72 Nm, respectively.

Its cabin is modern with features like a touchscreen infotainment system and digital instrument cluster, which are rare in this price range. It’s also practical for city driving, with light steering and compact dimensions. For those who want style and features without going beyond ₹5 lakh, Kwid is a strong contender.

Key Specifications:

• Engine displacement: 999 cc
• Mileage: 21.46 - 22.3 kmpl
• Seating capacity: 5
• Transmission: Manual/Automatic
• Fuel type: Petrol
• Body type: Hatchback
  
• Airbags: 2
• Ex-showroom price: ₹4.70 - ₹6.45 lakh
• Safety features: Electronic stability programme (ESP), hill start assist (HSA), tyre pressure monitoring system (TPMS), etc., along with other standard safety features

4. PMV EaS E | Starting at ₹4.79 Lakh

Source: pmvelectric.com

The PMV EaS-E, developed by Indian startup PMV Electric, is a compact electric car ideally suited for city traffic. It is a comparatively cheaper and also environmentally friendly transport system for individuals who live in cities. 

Due to the compact dimension of the vehicle, the EaS-E is suitable for use on crowded roads and narrow parking lots for day-to-day commuting. This vehicle targets comfort and usability as the primary selling point for people who are interested in using electric cars for their daily transportation needs.

Key Specifications:

• Engine Displacement: 1,199 cc
• Mileage: 160 kmpl
• Seating Capacity: 2
• Transmission: Automatic
• Fuel Type: Electricity
• Body Type: Hatchback
• Airbags: 1
• Ex-Showroom Price: ₹4.79 Lakh
• Safety Features: Rear view camera, front disc brakes, cruise control, and parking assist are important considerations for buyers.