On a tight budget? These 5 cheapest cars under 5 lakhs will change your life!

Raj Bloger

December 22, 2025

Hello friends! If you’re one of the millions of people dreaming of buying a new car but are held back by budget constraints, then this article is for you. I’m an average person myself, who spent months agonizing over my first car purchase.

Then one day, while browsing the market, I discovered that you can find cars for under 5 lakh rupees that are not only stylish but also practical for everyday life. Yes, today we’ll talk about five such budget-friendly cars that offer an SUV-like feel at the price of a hatchback.

These cars are packed with features, powerful engines, and offer great mileage. So, let’s dive into their world without further ado. I’ve provided complete details about each one so you can easily make your decision.

Maruti Suzuki S-Presso: India’s Most Affordable SUV-Style Car

Friends, if you have the tightest budget, the Maruti Suzuki S-Presso is the perfect choice for you. After the recent GST cut, its ex-showroom price starts at just Rs. 3.49 lakh.

I’ve seen it myself at a friend’s place – an SUV-like tall body from the outside, good headroom inside, and comfortable seating even in the back. This car is made for small families, where four people can easily sit comfortably.

Now, let’s talk about the engine – it has a 998cc three-cylinder petrol engine that delivers 67 PS of power. The torque is 89 Nm, meaning it’s easy to navigate city streets quickly. If you choose the CNG variant, it’s even better.

In terms of mileage, it offers an ARAI-certified 24.12 kmpl (petrol) and 32.73 km/kg in CNG. Features include a digital instrument cluster, power windows, ABS with EBD, and dual airbags as standard. The safety rating is 2-star GNCAP, but considering the price, it’s acceptable.

I like this car because it’s easy to park, and service centers are available everywhere. If you’re buying your first car, this could be your best buddy. Overall, the variants up to ₹4.5 lakh offer everything you need.

Renault Kwid: A French Combination of Style and Tech

Next up is the Renault Kwid, which looks the most stylish on the list. Its starting price is ₹4.29 lakh (ex-showroom), making it ideal for young buyers. I saw it on the road – the headlights with LED DRLs and the boxy design give it an SUV-like appearance. Inside, there’s an 8-inch touchscreen infotainment system that supports Android Auto and Apple CarPlay. The speakers are also good; music lovers will be happy.

5 cheapest cars for the poor 2026

The engine is a 999cc unit that delivers 68 PS of power and 91 Nm of torque. It comes with either a manual or AMT gearbox. Mileage? 21.46 kmpl (MT) and 22 kmpl (AMT) in petrol. If you drive in the city, this is perfect. Features include rear power windows, keyless entry, central locking, and hill hold assist. For safety, it has 2 airbags and ABS, with a 2-star GNCAP rating.

Friends, this car excites me because it gives a premium feel without costing a fortune. If your style quotient is high, don’t miss the Kwid. You can even get the top variant for under ₹5 lakh.

Maruti Suzuki Alto K10: A Classic Choice with a Modern Twist

Who can forget the Maruti Alto K10, often called the ‘Lord of the Highway’? For decades, it has been the first car for millions of families. The new model starts at ₹3.69 lakh, making it super affordable. I drove it with my family – small but sturdy, and stable even on the highway. The cabin space is good, and the boot is also adequate.

The engine is a 998cc K10B unit, which delivers 67 PS of power and 89 Nm of torque. A CNG option is also available. The mileage is amazing – 24.39 kmpl (MT petrol) and 33.85 km/kg in CNG. Features include a 7-inch touchscreen, steel wheels, power steering, and AC as standard. Safety features include dual airbags, ABS, and EBD. It has a 2-star GNCAP rating.

This car is special because servicing is cheap and easy. If you want something for daily commuting, the Alto K10 will be your perfect companion. I was amazed by its mileage – great value for money!

Tata Tiago: The King of Safety and Space

If you haven’t seen the Tata Tiago, you should definitely check it out. It’s a trendy-looking hatchback, starting at Rs. 4.57 lakh. The spacious cabin and multiple engine options – petrol, diesel, and CNG – make it versatile. I took it on a trip – the suspension was so good that it was comfortable even on bumpy roads.

The engine is a 1199cc Revotron petrol, producing 86 PS of power and 113 Nm of torque. The CNG variant is also popular. Mileage is 23.84 kmpl (petrol MT) and 26.49 km/kg in CNG. Features include a 7-inch touchscreen, cruise control (top variant), Harman Kardon sound system, and LED HIDs. Safety is top-notch – 4-star GNCAP rating, 2 airbags, and ABS.

Friends, Tata’s quality has become amazing. I like the Tiago because it prioritizes safety. If you’re planning a drive with your family, this is the best option.

Maruti Suzuki Celerio: Premium Feel on a Budget

If you’re looking for something a little above the Alto, consider the Maruti Celerio. Prices start at Rs. 4.69 lakh. This hatchback offers a premium feel – a smooth drive and good build quality. I drove it in the city, and it maneuvers easily in traffic.

The engine is a 998cc K10C, producing 67 PS of power. An AMT automatic transmission is also available. Mileage is 25.24 kmpl (MT). Features include a touchscreen, steering-mounted controls, and rear AC vents. Safety features include dual airbags and ABS.

This car is great because it’s easy to drive. Perfect for new drivers.

Conclusion

So friends, these five cars – S-Presso, Kwid, Alto K10, Tiago, and Celerio – are worth considering if you have a budget of Rs. 5 lakh. Each offers a great balance of features, engine performance, and mileage. My advice? Take a test drive at your local dealer and choose the one that best suits your needs. Enjoy your new car, and drive safely! If you have any questions, let me know in the comments.

Also Read – The new Kia Sonet with its powerful engine: Bring home the king of family SUVs for just ₹8,999 EMI!

Also Read – Kawasaki Ninja 500: The sports bike of your dreams, now available at ₹9,499 EMI! Bring it home today!

Leave a Comment