Cars Under 4 Lakhs in India

The car market is flooded with new and brilliant launches every year. The car makers have joined the competition to unveil new vehicles to lure buyers.

While some companies focus on the premium buyers, others come up with cars that suit the budget of middle-class Indians. In a quest to achieve greater sales, they have been introducing a few great car models in an affordable price range. While some of them are from budding manufacturers, others already enjoy the tag of the best-sellers in the budget-car market.

Updated On - 03 Oct 2025

The best thing about these cars are, though they are offered at competitive prices, they are no less than their high-priced counterparts when it comes to manufacturing, design, style, and performance. If you want a budget-friendly car that will be sturdy and reliable in all aspects, then you are in the right place. Here is a list of cars available under Rs.4 lakh in the Indian car market.

1. Tata Tiago

A hatchback in style and design, the classy Tiago features a luxurious yet sturdy look as expected by the Indian buyers. Tata Tiago is a first-of-its-kind budget car from Tata Motors. It offers a smooth driving experience and good fuel economy. Drivers can switch between the multi-drive. The electric power steering makes it easier to maneuver the car on Indian roads. What's more, Tiago comes with ConnectNext Infotainment system, speakers, and Bluetooth connectivity to enhance your driving experience. The safety features of this car include dual front airbags, ABS with EBD, and rear parking sensors with display.

Price: The starting price of the car ranges between Rs.3.21 to Rs.3.7 lakh (ex-showroom price New Delhi).

Tata Tiago Technical Specifications

Engine

Revotron 1.2-litre 3-cylinder petrol engine

Revotorq 1.05-litre 3-cylinder diesel engine

Fuel tank capacity

35 litres

Mileage

23.84 km/l

27.28 km/l

Displacement

1,199 cc

1,047 cc

Transmission

Manual, 5-speed/AMT

Manual, 5-speed

Maximum power

85 PS @ 6,000 rpm

70 PS @ 4,000 rpm

Peak torque

114 Nm @ 3,500 rpm

140 Nm @ 1,800-3,000 rpm

Seating capacity

5

2. Renault KWID

Renault KWID is another very high-utility budget car that should be included in this list. The hatchback is powered by a 0.8 litre Smart Control Efficiency Engine (SCe) with 3 cylinders. The interior of this SUV-inspired car is quite spacious and it offers a comfortable ride to the passengers. When it comes to cheap yet fashionable cars, this is the one you should go for.

Price: This car model is available at a starting price of Rs.2,66,700 (ex-showroom price New Delhi).

Renault KWID Technical Specifications

Engine

0.8-litre SCe

1.0-litre SCe

Fuel tank capacity

28 litres

Mileage

23-25.2 km/l

Displacement

799 cc

999 cc

Transmission

5-speed manual synchromesh

Maximum power

54 PS @ 5,678 rpm

68 PS @ 5,500 rpm

Peak torque

72 Nm @ 4,386 rpm

91 Nm @ 4,250 rpm

Seating capacity

5

3. Datsun redi-Go

Datsun redi-GO is available in 5 brilliant colors - ruby, silver, lime, grey, and white. The car has spacious interiors, a bluetooth audio system, and stylish headlamps. This car model offers the best in comfort, style, and performance. It has a high ground clearance. The remote key and central locking system features are convenient for the users.

Price: The price of Datsun redi-Go starts from Rs.2,67,690 (ex-showroom price Delhi).

Datsun redi-Go Technical Specifications

Engine

0.8-litre

1.0-litre

Fuel tank capacity

28 litres

Mileage

22.7 km/l

22.5 km/l

Displacement

0.799 l

0.999 l

Transmission

5-speed manual

Maximum power

54 PS @ 5,678 rpm

68 PS @ 5,500 rpm

Peak torque

72 Nm @ 4,386 rpm

91 Nm @ 4,250 rpm

Seating capacity

5

4. Hyundai EON

The South Korean manufacturer, Hyundai, is known for manufacturing fashionable yet less expensive cars. The best-in-class features, high style quotient, and spacious and attractive interiors are the factors that made it receive high admiration in the budget-car segment in the country. This serves as an ideal pick for people who are wishing to get an ideal blend of performance, style, and economy while buying a car.

If you are a first-time buyer, the Hyundai EON can serve as your ideal first car. This car model features a 15.75 cm touchscreen AV system, comfortable seats, a spacious boot, and wraparound headlamps.

Price: The price of Hyundai EON starts from Rs.3.32 lakh onwards (ex-showroom price Delhi)

Hyundai EON Technical Specifications

Engine

0.8-litre MPi

1.0-litre kappa

Fuel tank capacity

32 litres

Mileage

21.1 km/l

20.3 km/l

Displacement

814 cc

998 cc

Transmission

5-speed manual

Maximum power

56 PS @ 5,500 rpm

69 PS @ 6,200 rpm

Peak torque

7.6 kg.m @ 4,000 rpm

9.6 kg.m @ 3,500 rpm

Seating capacity

5

5. Maruti Suzuki Alto K10

The Alto K10 has dual-tone interiors, fog lamps, keyless entry, and power windows. This car model is available in 5 colours - tango orange, fire brick red, superior white, silky silver, and granite grey. Safety features of this car include driver side airbag, front disc brake, childproof rear door locks, seatbelts, and front fog lamps. Alto K10 offers fuel economy in heavy urban traffic. The i-GPI CNG technology in K10 makes the car eco-friendly.

Price: The Alto K10 is available at approximately Rs.3.30 lakh onwards (ex-showroom price Delhi).

Maruti Suzuki Alto K10 Technical Specifications

Engine

1-litre K-Next

Fuel type

Gasoline

CNG

Fuel tank capacity

35 litres

60 litres

Mileage

24.07 km/l

32.26 km/kg

Displacement

K10B (998cc)

Transmission

5MT/Auto gear shift

5MT

Maximum power

50 kW @ 6,000 rpm

43.3 kW @ 6,000 rpm

Peak torque

90 Nm @ 3,500 rpm

78 Nm @ 3,500 rpm

Seating capacity

5

When it comes to cars which cost under Rs.4 lakh, these are the most popular ones which have become common choices among the low income groups and students. However, the number of low budget cars are gradually increasing and the above list is not an exhaustive one. Whether it is cars or car loans, take the time to do some research and find the one that best suits your driving needs and auto financing needs.

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