Best Budget Cars in India in 2025

There are different ways to define a budget. When it comes to cars, the most popular definition for budget cars covers cars from Rs. 5 Lakh to 11 Lakh. This price range is where many people are upgrading from smaller vehicles, and these budget cars provide good value for money. Budget cars also feature a wide range of car segments, including hatchbacks and SUVs. We’ve even got an EV in the mix for people looking for an electric car. 

Here, we will look at some of the best budget cars available in the market which would provide the best value for the Indian customer.

Tata Tiago

Starting off this list of budget cars is the Indian hatchback, the Tata Tiago. The Tata Tiago has turned out to become a very popular choice among Indian customers. Starting at just Rs. 5.60 Lakh, the Tiago makes a lot of sense for budget car buyers who are looking for a versatile hatchback

The smart, compact hatchback is available in three fuel variants (petrol, CNG, electric) and two gearbox types (manual and automatic), giving customers several options. The Tiago looks chic and feels nice and premium on the inside as well. The cabin is well-laid out with textured plastics and the knitted roof lining elevates the experience. On top of that, the 1.2-litre engine delivers a punchy performance and the suspension provides a great ride.

Tata Tiago CNG Key Specs:

• Engine: 1.2-litre engine
• Power: 73 PS
• Transmission: 5-speed Manual
  Fuel Efficiency: 26.6 km/kg
• Fuel Type: Petrol + CNG
• Seating Capacity: 5

Hyundai Grand i10 Nios

Among budget cars in India, the Grand i10 Nios stands out as a top seller. With a starting price of just Rs. 5.73 lakh, it offers exceptional value, solidifying its position as one of the most attractive options in the affordable car segment. Hyundai has kept the tradition of building cracking hatchbacks for the Indian market over the years, and it doesn’t stop with the striking Grand i10 Nios. It sets a standard in terms of quality, performance and safety, and it does so at an affordable price. Again, you get plenty of options here in terms of powertrain, with both petrol and CNG mated to either a manual or an automatic transmission {only available in petrol}. 

The best part about the Grand i10 Nios is the plush interior with top-notch features such as the 8-inch touchscreen with Apple Car Play and Android Auto, which sets it apart from most rivals. It also features sleek, 5-spoke alloy wheels in its recent update. Regarding safety, it gets 4 airbags as standard across all variants, with the option of 6 in the higher trims. It also gets some interesting tech such as impact-sensing door unlock and speed-sensing door locks.

Hyundai i10 Nios Key Specs:

• Engine: 1.2-litre engine
• Power: 83 PS (Petrol) and 69 PS (CNG)
• Transmission: 5-speed Manual and 5-speed Automatic
  Fuel Efficiency: 21 km/l
• Fuel Type: Petrol and CNG 
• Seating Capacity: 5

Renault Triber

For larger families seeking affordable transportation, the Renault Triber stands out among budget cars. Starting at just Rs. 6.33 lakh, this versatile vehicle offers impressive space and practicality, making it an attractive option for cost-conscious buyers who need room for the whole family. Renault made huge waves when they announced the Triber, offering the convenience of a sub-4 meter car with the promise of seating for seven passengers. It has got the silhouette of an MPV, with its short bonnet and large passenger cell while being taller than the average hatchback. Underneath the hood, the 1.0L petrol engine is adequate for the car and seven passengers but might suffer under a heavier load. The manual version outperforms the AMT automatic, while convenient, is a bit jerky, and isn’t the best if you’re looking for quicker acceleration.

In terms of safety, you can spec the Triber with up to four airbags on the higher variants along with ISOFIX mounting points. On top of that, what’s impressive is that it scored a healthy 4-star in the GNCAP safety ratings. The Triber impresses with a good feature list. There are rear AC vents, a cooled central console, an automatic lock function, and more.

Renault Triber Key Specs

• Engine: 1.0-litre engine
• Power: 72 PS
• Transmission: Manual
• Fuel Efficiency: 18-19 km/l
• Fuel Type: Petrol
• Seating Capacity: 7

Maruti Suzuki Baleno

The Baleno is a proper jack of all trades and at a price range of Rs. 6.61 – 9.88 lakh, it is pretty much a no-brainer, and here’s why. Maruti has always been the benchmark for producing affordable and efficient budget cars in the market. When it comes to premium hatchbacks, Baleno has been a staple name in the segment since its inception in 2015. It has a modern, premium design that has stayed relevant over time, is extremely frugal and has always been updated with the latest features available.

In terms of powertrain, it is only available in petrol variants, but the engine is super refined and extremely fuel efficient. It puts out an impressive 22.35 km/l and is easily one of the most frugal hatchbacks in the country. The Baleno is quite well-equipped in terms of safety and is equipped with essential standardised features such as six airbags, ESP, and ISOFIX mounting points.

Maruti Suzuki Baleno Key Specs

• Engine: 1.2-litre
• Power: 90 PS
• Transmission: Manual
• Fuel Efficiency: 22.35 km/l
• Fuel Type: Petrol
• Seating Capacity: 5

Tata Tiago EV

Apart from the MG Comet EV, the Tiago EV is the cheapest electric car in India, undercutting the next most affordable EV by around Rs. 3 lakh. EVs have gotten very popular in the country in the past year.  For those of you aspiring to join the EV revolution without breaking the bank, this model tops our list of budget cars worth considering. As a city car, the Tiago EV offers every bit of practicality and manoeuvrability that the regular Tiago does, but uses electricity as the power source. 

Features-wise, the Tiago EV comes with all the bells and whistles, such as multiple driving modes, connected car features, rain-sensing wipers, a cooled glove box, TPMS and a lot more. We are including this one instead of the more affordable MG Comet EV because the Tiago EV is an actual 5-door hatchback. This helps make it a versatile option in our list of budget cars that are looking to drive not only inside the town but also outside the city limits.

Tata Tiago EV Key Specs

• Battery Pack: 24 kWh
• Power: 75 PS
• Torque: 114 Nm
• Range: 315 km
• Charging Time: 8 hours
• Fast Charging: Available

Honda Amaze

The Honda Amaze’s price tag begins at a modest Rs. 6.65 lakh, and here’s how it’s made it to our list of budget cars worth considering — incredible value for money. The Honda Amaze has been around the Indian market for ages and it still puts up a strong number in sales. It has received a facelift recently and some cosmetic tweaks on the exterior and interior. It comes with both petrol and diesel variants, both mated with an automatic transmission as well. The petrol engine is super smooth and refined, especially with the CVT gearbox option.

Like most Hondas, it is exemplary in terms of reliability, and basic maintenance can keep the Amaze running smoothly for several years. It is quite spacious inside the cabin and the boot is pretty accommodating as well for a car of its size. The Honda is quite well built and has a ton of standard safety features such as dual frontal airbags, ABS with EBD and ISOFIX mounting points for a child seat.

Honda Amaze Key Specs

• Engine: 1.2-litre
• Power: 90 PS
• Transmission: Manual
• Fuel Efficiency: 18.60 km/l
• Fuel Type: Petrol
• Seating Capacity: 5

Tata Punch

Starting at just Rs. 6.00 lakh and above, the Tata Punch remains a great choice among budget cars. The Tata Punch is one of the latest compact SUVs to come into the mix and is also a great budget option. Tata describes it as a product with ‘the agility of a hatchback and the DNA of an SUV’. Despite its pocket-friendly price tag, the Punch doesn’t compromise on-road presence, boasting a well-designed exterior that contradicts its status among budget cars. In terms of engine, it only comes with a 1.2-litre petrol engine with manual and automatic options.

It has become customary for Tata cars to score 5 stars in the GNCAP ratings and the Punch is no different. It comes equipped with dual frontal airbags, ABS with EBD, ISOFIX mounting points and a traction management system in the automatic versions. On the feature front, it does come with a 7-inch touchscreen and higher variants come with automatic climate control and cruise control which is impressive. 

Tata Punch Key Specs

• Engine: 1.2-litre
• Power: 88 PS
• Transmission: Manual
• Fuel Efficiency: 20.09 km/l
• Fuel Type: Petrol
• Seating Capacity: 5

Maruti Suzuki Dzire    

Next up on our list of budget cars is the Dzire, a well-rounded compact sedan with a price tag starting at Rs. 6.56 lakh and does not exceed Rs. 10 lakh. It was one of the first sedans in India to be based on a hatchback and one of the first sub-4 meter cars in India. Now in its third generation, it still leads the line in terms of space, practicality and comfort. The Dzire offers only a petrol variant but it is extremely fuel efficient, meaning the absence of a diesel isn’t felt here. The engine is quite responsive and the effortlessness in driving means it is perfect around Indian cities.

In terms of safety, it has got a decent kit with dual frontal airbags, ABS with EBD, ISOFIX mounting points and even ESP with hill-hold on automatic variants. The feature list doesn’t set a benchmark but it includes staples such as a touchscreen with Apple CarPlay and Android Auto connectivity, steering-mounted audio controls and fully automatic temperature control. Overall, the Dzire is a fantastic option for those looking for optimal space and comfort.

Maruti Suzuki Swift Dzire Key Specs

• Engine: 1.2-litre
• Power: 90 PS
• Transmission: Manual
• Fuel Efficiency: 22.41 km/l
• Fuel Type: Petrol
• Seating Capacity: 5

Nissan Magnite

Starting at just around Rs. 6.00 lakh, it makes a brilliant option for users who want a compact SUV at a budget price. Under pressure to perform in India, Nissan hit the bull’s eye by entering the compact SUV segment with the Magnite. They cleverly positioned it as one of the most accessible budget cars in its class, priced competitively below its rivals. On offer is a smart, compact SUV that is comfortable on the inside, well-equipped and easy to drive. The SUV is adequate in terms of performance and is exceptionally good for the turbo trims. The interior quality is also decent on the lower trims.

On the safety front, it does well to score a healthy 4 stars in the GNCAP ratings. All the variants offer dual front airbags, along with ISOFIX mounting points and ESP on the turbo variants of the SUV. It has two petrol engines on offer, and the turbo version with the CVT transmission is a great option. It also has a good feature list for an SUV which offers a great deal on a budget. 

Nissan Magnite Key Specs

• Engine: 1.0-litre, 1.0-litre turbo
• Power: 72 – 100 PS
• Transmission: Manual
• Fuel Efficiency: 18.75 km/l
• Fuel Type: Petrol
• Seating Capacity: 5

Summary

India is one of those markets where small cars still hold value, and usually have the best bang for the buck. There are many affordable, yet value-for-money options available, in a range of segments including hatchbacks, compact sedans, MPVs, and compact SUVs. So even if you have a family of 7 people, and need to buy a car under 7 Lakh, then the Triber is there waiting for you! Similarly, if you’re in the market for a second car for city runabouts, then you have the safe, and sturdy Tiago. The gist is, that if you go over our list of budget cars, you’ll see there’s a car for everyone!

FAQs on Best Budget Cars in India