Entry Hatchback
Maruti Suzuki S-Presso
₹3.50 Lakh to ₹5.27 Lakh ex-showroom
On-road in Bangalore from ₹4.17 Lakh
PetrolCNGManual & automatic
Cars Under 5 Lakh in India
Looking for a new car under 5 lakh in India? You have about seven models to pick from, and almost all are small, light petrol hatchbacks that are cheap to run and easy to park in city traffic. The most affordable, the Maruti S-Presso, opens at ₹3.5 lakh, and every car on this list still starts under the five lakh mark.
Every price here is ex-showroom, so add road tax, insurance and registration for your real on-road cost. Several of these cars also offer a factory fitted CNG option, which cuts your fuel bill sharply if you drive long distances every day. Below are all the cars under 5 lakh, sorted brand by brand.
Cheapest
Maruti Suzuki S-Presso
From ₹3.5 lakh
Best mileage
Maruti Suzuki Celerio
Famous for its fuel economy
Most space
Maruti Suzuki WagonR
Roomiest cabin in the group
Best built
Tata Tiago
Feels the most solid and safe
Maruti Suzuki Cars Under ₹5 Lakh
Maruti gives you the most choice at this budget with four cars. The S-Presso (from ₹3.5 lakh) and Alto K10 (from ₹3.7 lakh) are the cheapest. Both are light micro cars made for tight lanes and easy parking. The Celerio is known for some of the best petrol mileage in India, while the roomier WagonR seats a small family in comfort. All four offer a factory CNG option and an easy AMT automatic on higher trims, so you can choose a manual, an automatic, or the low running cost of CNG.
Entry Hatchback
Maruti Suzuki Alto K10
₹3.70 Lakh to ₹5.45 Lakh ex-showroom
On-road in Bangalore from ₹4.40 Lakh
PetrolCNGManual & automatic
Entry Hatchback
Maruti Suzuki Celerio
₹4.70 Lakh to ₹6.75 Lakh ex-showroom
On-road in Bangalore from ₹5.58 Lakh
PetrolCNGManual & automatic
Tall-boy Hatchback
Maruti Suzuki WagonR
₹4.99 Lakh to ₹7.24 Lakh ex-showroom
On-road in Bangalore from ₹5.92 Lakh
PetrolCNGManual & automatic
Renault Cars Under ₹5 Lakh
Renault offers the Kwid, an entry hatchback with chunky SUV styling and 184 mm of ground clearance. It runs a 69 PS 1.0 litre petrol with a manual or an easy AMT automatic and opens at ₹4.53 lakh. There is no factory CNG version, though Renault offers a government approved kit on the manual in select states.
Entry Hatchback
Renault Kwid
₹4.52 Lakh to ₹5.60 Lakh ex-showroom
On-road in Bangalore from ₹5.38 Lakh
PetrolManual & automatic
Tata Cars Under ₹5 Lakh
Tata's pick here is the Tiago, a cheerful hatchback that feels more solid and better built than most cars at this price. That is why it is a favourite for buyers who care about safety. It starts at ₹4.77 lakh in petrol or factory CNG, and higher trims add a touchscreen and more kit, though those push the price past five lakh.
Entry Hatchback
Tata Tiago
₹4.77 Lakh to ₹8.62 Lakh ex-showroom
On-road in Bangalore from ₹5.66 Lakh
PetrolCNGManual & automatic
Citroen Cars Under ₹5 Lakh
Citroen's C3 brings a French flavour, with a roomy cabin, a comfortable ride over bad roads and plenty of colour and personalisation choices. It starts at ₹4.99 lakh for the petrol Live trim, so only the base version fits under five lakh, while the punchy turbo petrol versions cost more. Look at it if you want a small car that stands apart from the usual crowd.
Hatchback
Citroen C3
₹4.99 Lakh to ₹10.21 Lakh ex-showroom
On-road in Bangalore from ₹5.92 Lakh
PetrolManual & automatic
Which car under ₹5 lakh should you buy?
For the lowest price, the Maruti S-Presso and Alto K10 are the cheapest new cars you can buy in India. For the best mileage, look at the Maruti Celerio. If you drive a lot each day, a factory CNG version of the S-Presso, Alto K10, Celerio, WagonR or Tata Tiago will save the most on fuel. Want the most solid, grown up feel for the money? The Tata Tiago is hard to beat, and families who need space should shortlist the WagonR.
What to check before you buy
These prices are ex-showroom, so your on-road price will be higher once road tax, insurance and registration are added, and it changes from city to city. Check how many airbags each variant gets, because safety kit usually improves on higher trims. If your running is high, a CNG option normally pays back its extra cost within a year or two. Open any car above to compare its variants and see the exact on-road price for your city.
Cars Under 5 Lakh: common questions
Which is the cheapest new car in India under 5 lakh?
The Maruti S-Presso is the most affordable, starting around ₹3.5 lakh ex-showroom, with the Alto K10 close behind at about ₹3.7 lakh. Both are small petrol hatchbacks that are cheap to run and simple to park.
What is the EMI on a car under 5 lakh?
On a ₹4 lakh loan over five years at about 9%, you pay roughly ₹8,300 a month. Use the calculator above to set your own down payment and tenure. Borrow against the on-road price, since it is higher than ex-showroom.
Should I buy a new car under 5 lakh or a used car?
A new car gives you a warranty, a clean service history and the latest safety kit, which a used car may not. If money is tight and you drive a lot, a new S-Presso or Alto K10 with factory CNG can be cheaper to own than an older used car.
Which car under 5 lakh has the best mileage?
The Maruti Celerio is known for some of the best petrol mileage in this group, and its LXi, the one Celerio under ₹5 lakh, is rated at 25.24 kmpl. For the lowest fuel bill, a factory CNG version of the S-Presso, Alto K10, Celerio or WagonR cuts your running cost even further.
Is CNG worth it in a car under 5 lakh?
If you drive more than about 40 km a day, yes. CNG costs much less per kilometre than petrol, so the small extra price of a factory CNG variant usually pays back within a year or two. For light use, plain petrol is simpler.