Car prices in India have moved steadily upward over the last few years. The reasons for this rise are many, such as tighter safety rules, stricter emission norms, expensive tech features and rising manufacturing costs and more. So when most first-time buyers think about a ₹5 lakh budget in 2026, the first reaction is usually doubt. Is there any car that’s genuinely worth buying left at that price?
You might not believe it, but yes, there are a few cars still available under 5 lakhs. But the reality is you have to set your expectations right. A “good” car under ₹5 lakh today is not about big screens, tech or sporty engines, but it is about reliability, low running costs and hassle-free ownership. Let’s figure out which new cars under 5 lakhs are available, and if there is any automatic car priced below this price point.
Choosing Cars Under 5 Lakhs in India
Here are some cars which are available under 5 lakhs in India. All the prices mentioned are ex-showroom.
- Maruti Suzuki S-Presso – Starting price is ₹3.50 lakhs
- Maruti Suzuki Alto K10 – Starts from 3.70 lakhs
- Renault Kwid – Range starts from 4.30 lakhs
- Tata Tiago – Starting price is 4.57 lakhs
- Maruti Suzuki Celerio – Starts from 4.70 lakhs
At present, five models are available under the 5 lakh ex-showroom price in India. Three of them are from Maruti Suzuki, one from Renault and one from Tata.
At the end, all these cars fall into the micro and mini hatchback category. They are light, offer high fuel efficiency and do their job of regular city drives pretty well. The compact dimensions of these models are great for easy city driving through traffic and narrow lanes. Furthermore, parking also becomes easier because of the small wheelbase.
Cars under 5 lakhs are reliable and also demand much lower maintenance than sub-4-metre SUVs or premium hatchbacks like Altroz or Hyundai i20. Overall, you are getting stress-free ownership and good resale value when you decide to upgrade. What these small cars cannot provide is stable highway performance. This is exactly where buyers searching for new cars under 5 lakhs need to align their purpose with purchase. These cars are about utility, not luxury.
Automatic Cars Under 5 Lakhs in India
The growing reliance on cars for daily commuting on highly congested roads has led to the demand automatics cars. However, most automatic cars are big and expensive, which does not suit many people. Hence, manufacturers sensed this gap and introduced budget automatic cars. However, options are very limited. In 2026, only three automatic models are available under ₹5 lakh. These are:
- Maruti Suzuki S-Presso VXi (O) AGS at ₹4.79 lakh
- Maruti Suzuki Alto K10 VXi (O) AGS at ₹4.95 lakh
- Renault Kwid Evolution AMT at ₹4.99 lakh.
All three of these models use AMT gearboxes, which are built strictly for convenience rather than performance. AMT gearboxes are best when used in city traffic as they help in reducing the clutch fatigue. If you are specifically looking for automatic new cars under 5 lakhs, these are your only realistic choices in 2026, and a test drive is essential because each car feels different in ride comfort and gearbox behaviour.
Practicality over Unnecessary Features
Where budget cars, whether they are manual or automatic, really shine is in ownership costs. The lightweight design keeps fuel consumption low, and service bills stay affordable. The spare parts are widely available and inexpensive for these mainstream brands. Extra expenses such as insurance premiums or minor denting and repair work are also manageable for most buyers.
When talking about a span of five years, an affordable car with low running and maintenance costs often makes far more financial sense than stretching for a larger model with higher upkeep. That is why this segment still works well for students, first-time buyers and families buying a second car for city usage.
Of course, when you are planning for cars under 5 lakhs, you have to accept some compromises that come in this segment. You may have to live without large touchscreens, alloy wheels, rear cameras or premium interiors. However, government norms have ensured that all the basic safety features come as standard fitment even in the basic cars as we have listed above.
Final Thought
At the end, it is absolutely your call on which car fits into your requirements and budget. Ultimately, choosing brands with reliable service support, sticking to proven mechanical setups, and prioritising daily comfort over badge appeal make a huge difference. A small, simple car that fits your real life is always better than stretching your finances for something bigger and flashier.
