Best cars under Rs. 5 lakh

Owning a car brings freedom, comfort, and convenience. For many first-time buyers or budget-conscious individuals, affordability matters most. Thankfully, the Indian market offers several cars under Rs. 5 lakh that strike the perfect balance between price, performance, and practicality.

From trusted names like Maruti Suzuki and Tata to feature-rich options like the Renault KWID, there is something for every need. And the good news? You do not need to wait or compromise due to budget limits. With Bajaj Finserv New Car Loan, buying your dream car has never been easier. You can get up to 100% financing of the car’s on-road price, making ownership simple and stress-free.

Want to skip the waiting time? Check your pre-approved new car loan offer and fast-track your car purchase today.

Top cars under Rs. 5 lakh in India

Planning to buy a car and need funds? Check your new car loan eligibility to know how much you can borrow. It takes only a few seconds.

Let’s look at the top cars under Rs. 5 lakh in India as of 2025 and explore how Bajaj Finserv New Car Loan can help you finance them effortlessly.

Maruti Suzuki Alto K10

The Maruti Suzuki Alto K10 is a budget-friendly hatchback known for its peppy performance and easy drivability in cities. Its 1.0-litre petrol engine offers smooth performance and excellent fuel efficiency. With prices starting at Rs. 4.23 lakh (ex-showroom Delhi), the Alto K10 delivers an impressive mileage of up to 24.90 kmpl and also offers a CNG variant with a mileage of 33.85 km/kg. It has a boot space of 214 litres and now comes with six airbags as standard across all variants, enhancing safety. The Alto K10’s affordability, fuel efficiency, and low maintenance costs make it one of the best entry-level cars in India.

Maruti Suzuki S-Presso

The Maruti Suzuki S-Presso brings a unique blend of SUV-inspired styling and compact proportions. It features a high seating position, bold stance, and a spacious cabin—all tailored for Indian city roads. Starting at Rs. 4.26 lakh, the S-Presso offers impressive mileage figures of up to 25.30 kmpl in its petrol variant and 32.73 km/kg in CNG. It comes equipped with a 1.0-litre engine and offers both manual and AMT options. With features like a touchscreen infotainment system, dual airbags, and rear parking sensors, the S-Presso is ideal for buyers who want an affordable car with a sporty and practical design.

Renault KWID

The Renault KWID stands out in this price segment with its SUV-like design, spacious boot, and smart features. With a starting price of Rs. 4.70 lakh, the Kwid offers a mileage of 21.46 kmpl and features a stylish exterior, digital instrument cluster, and a touchscreen infotainment system. It is powered by a 1.0-litre petrol engine and comes with both manual and AMT gearbox options. Its 279-litre boot space is one of the best in this segment, making it suitable for city use as well as occasional travel. The KWID’s style, comfort, and practicality make it a favourite among young urban drivers.

Tata Tiago

The Tata Tiago is a solid all-rounder that delivers excellent value just under the Rs. 5 lakh mark. Known for its robust build quality and high safety standards, the Tiago is the only car in this list with a 4-star GNCAP safety rating. Starting at Rs. 5.00 lakh, the Tiago offers a mileage of 20.09 kmpl and comes with a 1.2-litre petrol engine that offers peppy performance. It features a spacious interior, 242 litres of boot space, and modern conveniences like a touchscreen system, dual airbags, and ABS with EBD. It’s a great option for those who want more features, comfort, and safety within a tight budget.

Key highlights of cars under Rs. 5 lakh

Why choose Bajaj Mall for your car purchase

Buying your new car is made even easier with Bajaj Mall. The website’s user-friendly filters allow you to browse through various car models to find the perfect one for your needs. Once you've chosen your model, financing your purchase becomes hassle-free with the Bajaj Finserv New Car Loan.

With flexible loan options and competitive new car loan interest rates, you can skip the long wait times and enjoy instant approvals.

Our online new car loan EMI calculator make it easy to plan your purchase and manage repayments smartly. Whether you are buying your first car or upgrading from a two-wheeler, Bajaj Finance ensures your car buying journey is smooth, fast, and completely hassle-free.

If you're planning to buy a car under Rs. 5 lakh in 2025, the Maruti Suzuki Alto K10, S-Presso, Renault KWID, and Tata Tiago are your best picks. And with a Bajaj Finserv New Car Loan, owning any of these cars becomes easier than ever. So, check your pre-approved new car loan offer today and take the next step toward driving home your new car without delay.

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