If you are short on funds but need to find the perfect vehicle, you have stumbled on to the perfect place.  

Today, India's car market offers a diverse array of options for budget-conscious buyers under 5 lakhs. Ideal for first-time buyers, small families, students, and city commuters, these cars are economical and practical. 

These budget-friendly cars excel in fuel efficiency, seating capacity, compact designs for crowded roads, and decent safety features like airbags and anti-lock brakes, balancing affordability with essential features.

When buying a car in India, securing car insurance is also crucial as it is mandatory by the Motor Vehicles Act of 1988. It provides financial protection against accidents, theft, and damages, safeguarding your investment. Having car insurance saves you from hefty traffic fines, license suspension, and even legal trouble. 

Here we list out the best cars in India within 5 lakhs. Have a look at the models below and check which of them suits your unique needs properly. Let’s get started! 

Here are some of the most desirable cars under this price segment. All prices here are the ex-showroom price in Delhi.

1. Maruti Suzuki Alto K10 | Starting ₹3.99 Lakh

The Alto K10 is available in 4 distinct variants, with both manual and automatic transmission options. You can even choose from up to 6 different shades when picking the car. 

At present, petrol and CNG engines power this vehicle with either a 5-speed manual transmission or a 5-speed AMT. Moreover, the 214-litre boot space can also prove to be handy.

Key Specifications:

• Engine displacement: 998 cc
• Mileage: 24.39 - 24.9 kmpl
  
• Seating capacity: 5
• Transmission: Manual/Automatic
• Fuel type: Petrol/CNG
• Body type: Hatchback
  
• Airbags: 2
• Ex-showroom price: ₹3.99 - ₹5.83 lakhs
• Safety features: Dual airbags, ABS with EBD, and a driver-side airbag standard in some variants of the Alto K10

2. Renault Kwid | Starting ₹4.70 Lakh

Another option to consider when looking for the best car under 5 lakhs in India is the Renault Kwid. Although this car has several variants, each of them sports a petrol engine. 

The latter option comes with a 5-speed transmission system. Power and torque ratings are limited to 54 PS and 72 Nm, respectively.

Key Specifications:

• Engine displacement: 999 cc
• Mileage: 21.46 - 22.3 kmpl
• Seating capacity: 5
• Transmission: Manual/Automatic
• Fuel type: Petrol
• Body type: Hatchback
  
• Airbags: 2
• Ex-showroom price: ₹4.70 - ₹6.45 lakh
• Safety features: Electronic stability programme (ESP), hill start assist (HSA), tyre pressure monitoring system (TPMS), etc., along with other standard safety features

3. Maruti S-Presso | Starting ₹4.26 Lakh

The S-Presso is another pocket-friendly hatchback option to consider if you are looking for the best car under 5 lakhs in India. The petrol model is capable of generating up to 68 PS of power.

Only the VXi variant of this vehicle comes with an automatic transmission, while the others, such as the Std and LXi models, sport a 5-speed manual gearbox.

Key Specifications:

• Engine displacement: 998cc
• Mileage: 24.12 - 25.3 kmpl
• Seating capacity: 5
  
• Transmission: Manual/Automatic
• Fuel type: CNG/Petrol
• Body type: Hatchback
• Airbags: 2
  
• Ex-showroom price: ₹4.26 - ₹6.12 lakh
• Safety features: Reverse parking sensors, dual front airbags, ABS with EBD are important considerations for buyers in the S-presso.

4. PMV EaS E | Starting at ₹4.79 Lakh

The PMV EaS-E, developed by Indian startup PMV Electric, is a compact electric car ideally suited for city traffic. It is a comparatively cheaper and also environmentally friendly transport system for individuals who live in cities. 

Due to the compact dimension of the vehicle, the EaS-E is suitable for use on crowded roads and narrow parking lots for day-to-day commuting. This vehicle targets comfort and usability as the primary selling point for people who are interested in using electric cars for their daily transportation needs.

Key Specifications:

• Engine Displacement: 1,199 cc
• Mileage: 160 kmpl
• Seating Capacity: 2
• Transmission: Automatic
• Fuel Type: Electricity
• Body Type: Hatchback
• Airbags: 1
• Ex-Showroom Price: ₹4.79 Lakh
• Safety Features: Rear view camera, front disc brakes, cruise control, and parking assist are important considerations for buyers.