Best Car Under 5 Lakh Rupees

In India, there’s simply no dearth of budget-friendly cars. In fact, there are so many choices that it can at times be hard to choose one. If this is something that you’re currently experiencing in your search for the best car under 5 lakh, then you’ve come to the right place. In this article, we’re going to be taking a look at a few budget cars that you can consider for your first or your next purchase. Let’s start.

  1. Maruti Suzuki Wagon R

The Wagon R is currently one of Maruti Suzuki’s longest running series of four-wheeler vehicles. Over the years, the car has been updated and upgraded multiple times. The car comes with a choice of either a 1.0-litre engine or a 1.2 litre engine, with both of them delivering exceptional fuel efficiency figures. The car is not just frugal and efficient, but also quite spacious too.

  1. Tata Tiago

If you’re looking for a solidly built car with exceptional crash safety ratings, then the Tiago is undoubtedly the best car under 5 lakh. From the stable of our very own automobile manufacturer – Tata, the Tiago is compact, and features a powerful 1.2-litre three-cylinder petrol engine that generates almost 85 bhp of power. Even the base variant of the car carries a lot of features and the same build quality as that of its higher trims.

  1. Renault Kwid

The Renault Kwid is a quirky, yet practical city car that’s compact enough to squeeze through narrow roads with ease. The car comes with several gizmos and segment-first features such as daytime running LED lights, reverse camera, rear armrest, and ABS, among others. Renault Kwid has two engine options on offer – a 799cc and a 999cc engine. Although both the engines are not suited for high-speed driving, they’re perfect for running through the city, where there’s likely to be more bumper to bumper traffic.

  1. Hyundai Santro

Just when the Indian public slowly started to forget the Santro, which was a household name in the early 2000s, Hyundai chose to revive it. The new Santro has been completely revamped and has been transformed into an entirely new car. The car now features a sleeker and fluid design that’s more pleasing to the eye and comes with a 1.0-litre petrol engine that’s tuned for city driving. As with the other cars in this list, the Santro also comes with an automatic transmission too.

  1. Maruti Suzuki Alto    

Another household name that’s been in constant production through the years is the Maruti Suzuki Alto. The car has gone through several generations of updates and is currently offered in a single engine configuration – an 800cc 3-cylinder petrol engine. The Alto comes in multiple different variants with the highest variant getting several features that are typically only found in higher-end cars such as a touchscreen infotainment system, reverse parking sensors, dual front airbags, ABS, and EBD.


Whatever your choice of a car under 5 lakh may be, always make sure to opt for an appropriate car insurance plan. This way, you can ensure that your precious vehicle stays secure and protected at all times.

If you wish to purchase car insurance online, make sure to visit Finserv MARKETS. It is an online marketplace that offers multiple financial products including vehicle insurance from a host of service providers. You can compare and contrast the various car insurance policies and choose the one that suits you the best.