8 Best Cars Under 5 Lakhs In India To Buy In April 2020

There are a lot of options in the entry-level car segment, and it is not an easy task to choose the best cars under 5 lakhs in India. Cars in this category offer the perfect mix of affordability and peppy performance.

Additionally, there are a lot of other benefits to buying a car in under 5 lakhs in India. They are cheaper to insure, maintain, and run daily. It is, therefore, no wonder why some of the best cars in India fall below this price point.

Please note that the list is in no particular order and the prices indicated are ex-showroom price.

8 Best Cars Under 5 Lakhs In India (2020)

  • Tata Tiago
  • Renault Kwid Facelift
  • Maruti Suzuki Wagon R
  • Maruti Suzuki Celerio And Celerio X
  • Hyundai Santro
  • Maruti Suzuki Ignis
  • Alto 800
  • Maruti Suzuki S-Presso

1. Tata Tiago – Best Car Under 5 Lakhs In Terms of Safety

Tata Tiago
Price (ex-showroom) Rs 4.6-6.6 lakh
Engine option 1.2-liter 3-cyl Revotron BS6 Petrol (AMT and Manual transmission)
Engine Specs 84.48 BHP and 113 Nm of Torque
Fuel Economy 20 km/l

Tata Tiago is the safest and best-handling car you can buy for under Rs 5 lakh budget in India. EURO NCAP awarded the facelift version of the 2020 Tata Tiago a 4-star safety rating. Additionally, you should consider buying Tata Tiago because of its reliable build quality, powerful engine, and comfortable ride quality. Tata Tiago also offers a fully digital instrument console, with two front airbags along with EBD and Corner stability control as standard.

2. Renault Kwid Facelift

Renault Kwid
Price (ex-showroom) Rs 2.9-5.01 lakh
Engine option 0.8-liter 3-Cyl BS6 Petrol (Manual)
1.0-liter 3-Cyl BS6 Petrol (Manual and AMT)
Engine Specs

0.8-litre – 53.2 BHP and 72 Nm Torque
1.0-liter – 67 BHP and 91 Nm Torque

Fuel Economy
25.17 km/l for 0.8-liter engine.
23.01 km/l for 1.0-liter engine.

The 2020 Renault Kwid facelift is one of the best cars in terms of design and visual appeal available under Rs 5 lakh in India. The updated Renault Kwid features a redesigned front and rear end along with an increase in weight and 14-inch wheels. The highlight of Renault Kwid is its ride quality and list of features like touch screen, reverse parking camera, and a digital console.

Unlike its competitors, both engine options in Renault Kwid do not offer a punchy performance.

3. Maruti Suzuki Wagon R

Maruti Suzuki WagonR
Price (ex-showroom) Rs 4.45-5.94 lakh
Engine option

1.0-liter 3-Cyl BS6 Petrol (Manual and AMT)
1.2-liter 4-Cyl BS6 Petrol (Manual and AMT)
1.0-liter 3-Cyl BS6 Petrol + CNG  (Manual)

Engine Specs 1.0-liter – 67 BHP and 90 Nm Torque
1.2-liter – 82 BHP and 113 Nm Torque
Fuel Economy 20.52 km/l in petrol
33 km/kg in CNG

Wagon R is great for long, comfortable rides and luggage hauling. The suspension settings in this car are quite soft and tuned mainly for comfort. Both engine options for Wagon R deliver an engaging driving experience and punchy performance.

Wagon R is bigger than all of its competitors and offers class-leading space for its passengers and in its boot. Getting in and out of this car is a comfort that outperforms even the class-leading sedans.

Some of the cons of Wagon R include less cabin insulation, less stability at high speeds due to soft suspension settings, and average build quality.

4. Maruti Suzuki Celerio

Maruti Suzuki Celerio
Price (ex-showroom) Rs 4.41 – 5.58 lakh for Celerio
Rs 4.9 – 5.67 lakh for Celerio X
Engine option

1.0-liter 3-Cyl BS6 Petrol (Manual and AMT)
1.0-liter 3-Cyl BS6 Petrol + CNG (Manual)

Engine Specs 67 BHP and 90 Nm Torque
Fuel Economy 23 km/l in petrol
32 km/kg in CNG

Stance wise, unlike the Wagon R, Celerio is wider than it is tall, which makes it very stable at high speeds. Celerio’s suspension setup is neither stiff nor too soft. It can easily soak road bumps while lending the car a planted feel at above 100 km/h driving speed.

Celerio’s peppy engine and its responsive handling instantly make it one of the best entry-level performance cars. Celerio is a bit more expensive as it only offers a smaller 1.0-liter, despite being similar in pricing to WagonR. But it makes up for it in terms of ride stability and handling performance.

But despite being a relatively premium product in its segment, Celerio lacks features like a digital instrument console and LED/projector headlights.

Maruti Suzuki Celerio X – Crossover Variant Of Celerio

It is the sister of Maruti Celrio but has more sporty features like a redesigned front and rear bumper along with black alloy wheels. One more difference in Celerio X over its normal variant is a heavy steering wheel. It is responsive nonetheless, and more weight only makes it easy for new drivers to handle this car at high speed.

The main con of Celerio X is that it is just like Celerio with a cosmetic overhaul. The rugged rear and front bumper, in addition to an all-black interior, only gives it a different look and not much in terms of functionality.

5. Hyundai Santro

Hyundai Santro
Price (ex-showroom) Rs 4.57-6.2 lakh
Engine option

1.1-liter 4-Cy BS6 Petrol (Manual and AMT)
1.1-liter 4-Cyl BS6 Petrol + CNG (Manual)

Engine Specs 67 BHP and 99 Nm Torque
Fuel Economy 20 km/l on petrol
30.48 km/kg on CNG

Hyundai Santro is the most affordable car in Hyundai’s lineup and one of the cheapest 4-cylinder cars in India. It offers several features in its class, which other cars do not like, passenger side AC vents, and a reverse parking camera.

Santro is based on the same platform as Hyundai’s best-selling car Grand i10. In terms of driving, it offers a smooth gearbox with short throws, which makes your city drive comfortable. The engine in Santro is very refined and performs very well at the low and mid-range but struggles a bit at the top end. Overall, Santro is a great city car under Rs. 5 lakh budget.

One of the main cons of the Hyundai Santro is its lightweight body structure, due to which it has a low safety rating.

6. Maruti Suzuki Ignis – Best Premium Car Under 5 Lakh

Maruti Suzuki Ignis
Price (ex-showroom) Rs 4.89-7.19 lakh
Engine option
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

Ignis is the most budget-friendly premium car in India under Rs. 5 lakh budget that also comes with a powerful engine. The design of Maruti Ignis is quirky, and some users adore it while others hate it. The interior cabin of this car feels well insulated as almost no engine noise penetrates inside. Ignis is a compact SUV, so the driver seat offers good visibility. Due to its compactness and responsive steering, Ignis is easy to maneuver around the city.

Ignis’s main problem is less cabin space for rear passengers and its polarizing exterior design.

7. Alto 800

Alto 800
Price (ex-showroom) Rs 2.94-4.36 lakh
Engine option 0.8-liter 3-Cyl BS6 Petrol (Manual)
0.8-liter 3-Cyl BS6 Petrol + CNG (Manual)
Engine Specs 40.3 BHP and 60 Nm Torque
Fuel Economy 25 km/l in petrol
33 km/kg in CNG

It is India’s best-selling car and sells in millions of units per year. Alto 800 is a city car with great fuel efficiency and easy driveability. In terms of features, Alto 800 is very basic, but higher trims do offer a touch screen functionality. The engine performance of this car is also very mediocre, as Alto 800 is only meant to be driven at slow speed.

The Alto 800 is a very basic car with below-average interior and ride quality. The interior cabin space in Alto 800 is much smaller, and a lot of engine sound infiltrates inside, making it very noisy at high speeds.

8. Maruti Suzuki S-Presso

Maruti Suzuki S-Presso
Price (ex-showroom) Rs 3.7-4.99 lakh
Engine option

1.0-liter 3-Cyl BS6 Petrol (Manual and AMT)
1.0-liter 3-Cyl BS6 Petrol + CNG (Manual)

Engine Specs 60.7 BHP and 90 Nm Torque
Fuel Economy 22 km/l in petrol
30 km/kg in CNG

S-Presso is a mini-SUV from Maruti Suzuki, which looks like a hybrid between Alto K10 and Wagon R. S-Presso is lightweight and uses the same engine as its other Maruti cousins. Therefore it delivers quick acceleration and peppy performance throughout the rev range.

The handling of S-Presso is similar to last-gen Wagon R. Meaning, S-Presso may suffer from a little bit of body roll while turning at high speeds. The interior quality and cabin space of the Maruti S-Presso is similar to other Maruti cars in its segment, like the Celerio.

S-Presso’s instrument cluster isn’t present in front of the driver. Instead, it is integrated into the center console. It can be a problem if you want to read information like fuel level, distance traveled, while driving the car.

Which Is The Best Car Under 5 Lakhs?

Maruti Suzuki Ignis and Tata Tiago are two cars that stand out from the rest of the products. Both offer a good blend of performance, safety, and affordability.

However, every car on this list has its own quirks and features. If your budget is Rs. 5 lakh, then these are your best options in the market.

So, according to you, which one is the best car under 5 lakhs in India?

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