Next to buying a home, buying a car is one of the most important purchase decisions a family typically makes.  In this blog we will examine some of the best budget cars in India under Rs. 5 Lakhs (on-road price includes ex-showroom price, RTO registration, and insurance).

Maruti Alto 800 (Mumbai on-road price starting from ₹ 3.73 Lakh onwards)

The perennial favourite, Maruti Alto recently completed the sale of 4 million units. While it has been around for 2 decades, it has gone through several modernizations and is still a much beloved budget hatchback. There are 6 variants to choose from with varying features and 2 fuel types - petrol and CNG. The CNG version has been gaining immense popularity due to its economical operational costs and environment-friendly fuel type. 

Datsun redi-GO (Mumbai on-road price starting from ₹ 4.72 Lakh onwards)

The Datsun redi-Go has been giving healthy competition to the Maruti Alto in terms of size, features and performance. What’s more, it is undergoing a major lift and the new and improved version is being awaited with high anticipation. Its attractive styling, zippy performance and high ground clearance are areas where it scores the most. It is one of the few budget hatchbacks which also comes with an AMT (automated manual transmission) model which is ideal for city driving without having to exert too much pressure on your limbs due to the constant clutching and gear shifting.

Renault Kwid (Mumbai on-road price starting from ₹ 4.79 Lakh onwards)

The new Renault Kwid launched comes with an updated exterior and interior while the engine specifications remain unchanged. It is available in 8 variants and 6 colors making for a diverse variety to choose from. The facelift includes a new front bumper, split headlamp setup, LED lights, and an integrated roof spoiler. The interior comes with an eight-inch touchscreen infotainment system with Apple CarPlay, Android Auto and Voice recognition, fully digital LED instrument cluster and reverse parking camera with sensors. These sleek looks and jazzy features have already made the Kwid a very popular model among youngsters and others alike.

Maruti S-Presso (Mumbai on-road price starting from ₹ 4.46 Lakh onwards)

Due to its reliability, dependability and value for money, it should come as no surprise that another Maruti model features on this list. The Maruti S-Presso offers one of the best turning radius of 4.5-metres making it a popular city-car. The looks and chassis imitate some of the popular SUV models (like Brezza) which add to the popularity of this hatchback, along with variants which include petrol, CNG in manual/automatic transmission.

Maruti Eeco (Mumbai on-road price starting from ₹ 5.01 Lakh onwards)

While the 4 earlier described models were also hatchbacks, we have added some diversity to this list by introducing Maruti Eeco to this list. This minivan provides ample space for passengers and has a 275 ltr boot space which can store a substantial amount of luggage as well. It also comes in a CNG variant which can turn into a very useful transportation carrier for small businesses. The 1196 cc engine comes with a 5 speed manual transmission and all the usual features one would expect, like ABS, front airbags, child lock etc.

The list above only considers the on-road price in Mumbai of the base variant of each model. Therefore, exact prices will vary, based on the specific variant and the city of your purchase.

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By choosing the New Car Purchase loan option from HDBFS you can secure a loan amount up to 90% of the vehicle value, based on your application meeting the eligibility criteria.