Best Cars To Buy Under 5 Lakhs in India 2021


Indians always have a high penchant for small cars. Our obsession with these economy cars is not going to come to an end anytime soon.

India has become the fourth largest in the automobile industry in 2019 and in 2021 it is expected to displace Japan and emerge into the third largest.

The rising adoption of personal mobility, mid-size SUVs, digitization of dealership models, the shift in profit centers, and change in the policies have made the car industry emerge into popularity especially the cars under 5 lakhs in India.

With our home-grown Tata Tiago breaking all norms with unconventional styling the car makers are trying to match the bars raised by the Tiago. So, if you are planning to upgrade to a four-wheeler from a two-wheeler or pondering to switch to a new car this is the best time!

As we are getting ready to enter into a new financial year we’re presenting you a list of the top 5 best cars to buy under 5 lakhs in India

Best Cars To Buy Under 5 Lakhs in India:

Tata Tiago

Tata has always strived to manufacture cars that include premium features while keeping the cost of the vehicle at an affordable level. Their cars are said to be the most used cars, especially in the category of best cars to buy under 5 lakh in India which has the perfect combination of performance and pricing.

Tiago was launched in early 2019. It has a new sporty design with next-gen technologies. Its premium interiors and dynamic performance make it one of the best cars to buy for under 5 lakhs in India.

This car is offered with a starting price of 4.60 rupees for the entry-level variant and goes up to 6.60 lakh rupees.

The Tata Tiago is available in eight variants, XE, XT, XZ, XZA, XZ+, DT, XZA+, and XZA+DT of which the XE model is priced at 4.85 lakhs.

TATA ALTROZ Dynamic Performance
Image Source: Tata Motors
Model TataTiago XE
Price Rupees4.85 lakh
Fuel TypePetrol
Fuel Capacity35 Litres
Seating Capacity5
Engine Capacity1199 cc
BHP84.48 BHP
Mileage23.84 kmpl
Colors  Daytona Grey, Flame Red, Pearlescent White, Pure Silver, Tectonic Blue, and Victory Yellow
Steering Type                            Electric
SafetyAnti-lock braking system, Power door locks Child safety locks, Driver and Passenger airbagPassenger-side rearview mirror, Day and Night rearview mirrorSeat belt warning, Door Ajar warning, Crash sensorSide and Front Impact beam, Anti-theft device

Renault Kwid

The Renault Kwid has been successfully established as a budget hatchback among the best cars to buy under 5 lakhs in India. It’s SUV-inspired styling, digitized dials, and touchscreen infotainment have indeed made it a budget hatchback.

It got a facelift in 2019 bringing along revised styling, refreshed cabin look, and additional features. Its refreshed face with a split headlamp and LED detailing on the tail lights adds to its premium touch.

Its quality however is found to be average and the build is expectantly light. 

As far as budget cars are concerned the Renault Kwid offers fairly good space with a well-thought-out and practical cabin. Its creep mode helps during crawling traffic and there are no manual mode options.  

The Renault Kwid is easy to steer and park the car and has an impressive ride quality in the category of best cars to buy under 5 lakhs in India. The handiest operation of the Kwid is its generous 184mm of ground clearance. Its sprightlier 68hp, 1.0-litre is easily the better car option to drive.

There are various variants in the Renault Kwid – STD 0.8, RXE 0.8, RXL 0.8, RXL 1.0, RXT 0.8, NEOTECH 0.8, NEOTECH 1.0, RXL 1.0 Easy-R, RXT (O) 1.0, Climber (O), NEOTECH 1.0 Easy-R, RXT (O) 1.0 AMT and CLIMBER (O) AMT.

Renault KWID Neotech Edition
ModelRenault Kwid
Price Rupees3.18 to 5.44 Lakh
Fuel TypePetrol
Fuel capacity28Litres
Seating capacity5
Engine Capacity799cc and 999cc
Mileage22.0 kmpl
Colors  Blue, Fiery Red, Ice Cool White, Moonlight Silver Body with Zanskar Blue roof, Outback Bronze, Zanskar Blue and Zanskar Blue with Moonlight Silver roof
Steering Type                            Electric
SafetyAnti-lock braking system, Central lock systemPower door locks, Child safety locksDriver and Passenger airbag, Seat belt warning,Passenger-side rearview mirror, Crash sensor,Side and Front Impact beams, Anti-theft deviceSpeed Alert                                      

Maruti Alto

The Maruti Suzuki’s Alto has been India’s favourite hatchback since the year 2000. During those times it even overtook the Maruti 800 in terms of sales, thus making it the largest selling car in India in the category of the best cars to buy under 5 lakh in India.

This brand has been improving and fine-tuning its model for over a decade now. The 2019 new look of the Alto comes with a BS-VI-compliant petrol engine with an enhanced body shell to comply with the crash test norms. 

The new model of the Maruti Alto continues to deliver high in terms of convenience with a mildly restyled front-end, reworked cabin, smaller carbon footprint, and more safety features. The elegant new and sharp grille headlights bring a fresh appeal to the Alto. It has also got a newly designed bumper along with tweaked fenders.

The Maruti Alto has 8 variants available in India – STD, STD (O), LXi, LXi (O), VXi, VXi Plus, LXi (O) CNG, and LXi CNG.

Maruti Suzuki launches BS-6 compliant S-CNG Alto; price starts at Rs 4.32  lakh
Image Source: Business Today
ModelMaruti Suzuki Alto
Price Rupees2.95 lakhs to 4.36 lakhs
Fuel TypePetrol and CNG
Fuel Capacity35Litres
Seating Capacity5
Engine Capacity796cc
Mileage22.05 kmpl or 22.05 km/kg
Colors  Cerulean Blue, Granite Grey, Mojito GreenSilky Silver, Solid White, Superior White, Uptown Red
Steering Type                            Manual
SafetyAnti-lock braking system, Child safety locksDriver and passenger airbags, Crash sensor,Passenger-side rearview mirror, Seat belt warning 

Hyundai Santro

The next-generation Hyundai Santro was launched in India in October 2018. Even though the name is the same, the new Hyundai Santro is far better than the original one. The engine is the only common element between the one and the new version of the Santro.

The original version was known as the “tall boy” for its high roof design but the new model has a more conventional silhouette. 

The styling is also neat with a polarised oversized front grille.

Despite some obvious cost-cutting, Hyundai has successfully managed to make its cabin feel upmarket. 

There is a lot of room in the back as well with the feeling of space being enhanced with large rear windows. 

A light steering and tight turning circle make it easy to punt around the town in the Hyundai Santro. 

The AMT auto is well in tune with the character of the engine and offers timely shifts. Its pliant suspension does a good job of absorption of bumps.

The latest model of the Hyundai Santro is slightly positioned higher in the price ladder of the category of best cars to buy under 5 lakhs in India but it hopes to justify the price tag with its premium features.

There are six variants of the Hyundai Santro – Magna, Sportz, Magna AMT, Asta, Sportz AMT, Magna Executive CNG with the Magna variant priced at 4.67 lakh rupees.

best cars to buy under 5 lakh in India
Image Source: Auto Car India
ModelHyundai Santro
Price Rupees4.67 lakh rupees to 6.57 lakh rupees
Fuel TypePetrol and CNG
Fuel Capacity35Litres
Seating Capacity5
Mileage22.0 kmpl
Engine Capacity1086cc
Colors  Alpha Blue, Diana Green, Fiery Red, Imperial Beige, Polar White, Titan Grey, Typhoon Silver
SafetyAnti-locking system, Child safety lock, Central locking, Power door locks, Driver and Passenger airbags, Seat belt warning, Day and Night rearview mirror, Door ajar warning Crash sensor, Speed-sensing auto door lock Impact sensing auto door unlock

Datsun Redi-GO

The Redigo is Datsun’s take on the category of the best cars to buy under 5 lakh in India. Its basic mechanicals is the same as the Renault Kwid but is still completely different in looks both outside and inside. 

The Datsun Redigo stands out in the crowd with its funky design and tallboy looks. You will feel like you are sitting higher than in any other budget hatchbacks and visibility is a boon. 

The cabin space is also good for this class of car with a neat dashboard. The gear shifts on AMT auto are smooth during an average drive. But if you are driving recklessly then you will surely get the head nod for which this type of transmission is notorious.

Datsun has been working on facelifting the Redigo version and has already commenced on the public road tests of this model. The new model will arrive with an updated exterior design and BS6-compliant engine. An updated new bumper, headlamps, bonnet, and grille with reworked tail lights are also the new additions to the Redigo.

There are four variants available in Datsun Redi Go – D, A, T and AMT 1.0T

best car to buy under 5 lakhs in India
Image Source: Hindustan Auto News
ModelDatsun Redi Go
Price Rupees3.15lakhs to 4.86 lakh rupees
Fuel TypePetrol
Fuel Capacity28Litres
Seating Capacity5
Engine Capacity999cc
Mileage22 kmpl
Colors  Amber Orange, Bronze Grey, Crystal SilverOpal White, Ruby, Vivid Blue Silver roof
Steering Type                            Power
SafetyAnti-lock braking system, Central locking,Power door locks, Child lock safety, Safety belt warning,Driver and Passenger airbag, Door Ajar warning, Side and Front Impact beams, Crash sensor, Speed alert                                    


Entry-level cars are usually between Rupees 3-5 lakh. At present, there are more than about 20 cars in this segment to offer. Right from small cars like Tata Nano to Datsun Redi Go every carmaker has made his presence in this sector.

There are a lot of benefits of buying these cars. They are cheaper to insure, maintain and run daily. That is why some of the best cars in our country fall in the entry-level segment. 

The sleek designs, fuel efficiency, peppy performance, etc are the key selling points. It also satisfies one’s desire to own a car as many of them in this space are usually first time buyers.

You will also like: Top 10 Low Maintenance Cars in India


Please enter your comment!
Please enter your name here