Indian automobile market is growing at an exponential rate day by day and apparently the number of choices that are available are more than enough. Whether it’s the mechanical configuration, the cosmetic elements, body style or automatic/manual automobiles, a prospective buyer has a lot of freedom to opt for his/her favorite car. The companies are now closely studying the needs and buying behavior of the audience and hence for each and every price tag, there is a suitable option available.

For example the Renault has launched Kwid at just INR 2.69 Lacs and that too with an SUV-ish stance. This is not only being liked by hatchback lovers, but it has become a hit among a variety of customers. So, with the change in time, our wishes are no longer bounded to a particular section.

If you are planning to buy your first car and looking for the best cars in India under INR 5 Lacs 2016, you’re about to get all the information that you might need. We have prepared a list of all such cars along with their price tags over here. This will help you in making a wiser decision in a way that you can pick out the best one as per your budget.

So, here are the best cars in India under INR 5 Lacs 2016, enlisted as follows:

Datsun Redi Go

(INR2.44 – 3.65 Lakh)

Where the number of entry level hatchbacks like Maruti Alto 800, Renault Kwid, Hyundai Eon, etc are already fighting with the potholes on the Indian roads, another small car has just made its entry, but with a high ground clearance. Yeah! It’s Datsun Redi Go, which has just been launched in the country at the starting price of INR 2.42 Lakhs for its base variant D and goes up to INR 3.49 Lakhs for top-spec S trim. Besides, three different Redi Go mills have also been offered namely A, T, and T(O) along with five different color options Lime Green, Ruby Red, Silver, White, and Gray.


Moving to the features, the car has got enough elements to compete with its rivals. One must recall that the car is running on the same Nissan-Renault Alliance (CMF-A) platform as seen on the Renault Kwid. Moreover, the model has also been attached with many basic as well as some advanced features.

Under the hood, it is using the same 0.8-litre petrol engine that is holding the common output as 53 Bhp at 5678 rpm and 72 Nm of torque at 4386 rpm similar to that of Kwid. A 5-speed manual transmission unit is present there as well to help the engine. Having this arrangement, the hatch returns 25.17 kmpl of mileage on highway and 21.38 kmpl in city.

Maruti Suzuki Alto 800

(INR 2.56 – 3.89 Lakh)

The latest iteration of Alto 800 is not much stylish when you compare it with its rivals, but it definitely meets the basic expectations of the audience like fuel efficiency and pricing. It has got a twin grille on the fascia which is bordered by two bulging headlamps on each side, elegant shoulder crease, well-sculpted rims and a large windscreen at the rear. The absence of fog lamps is a definite drawback for the car. The interiors include a conventional steering wheel, new instrument panel, power switches and chrome accents at certain portions. There is enough space to carry 5 adults at a time and the seats are adjustable.

Alto 800

As far as the mechanical specs are concerned, it is powered by a 0.8 litre, 3-cylinder engine that is tuned to generate 48PS and 69 Nm of maximum output and is mated to a 5-speed manual tranny.
With this motor, the fuel efficiency stands at 22.74 km/l, while with the CNG version of the car, this figure reaches to 30.46 km/kg. For safety, it gets strong metal sheet monocoque structure, driver airbag, actively responsive steering, drum brakes at the front and disc brakes at the rear.

Renault Kwid

(INR 2.74 – 4.42 Lakh)

Renault Kwid is just a few months old in the market and it has already created a lot of buzz among the audience. Although it targets the entry level hatchback segment, the first look will make you think of it as a utility vehicle because of its muscular body structure. The design is smart and sporty in the form of body cladding, square wheel arches, radiator grille, black colored door handles and wing mirrors, etc. Unlike a typical hatch in this segment, the Kwid gets a trendy interior with a distinctive dashboard. There are chrome accents found on the centre console and the equipments lie instruments cluster as well as knobs are quite appealing.

Renault Kwid

Power for the Kwid comes from a 799 cc petrol engine that propels around 54PS at 5678 rpm and 74Nm at 4386 rpm. As of now, the car is available with a manual gearbox, but soon a 1 litre mill is going to be offered with an AMT facility. The ARAI rated fuel efficiency as per the company’s claims stand at 25.17 km/l.

Also Read: Newly Launched Cars in India 2016 With Price

Renault Kwid 1.0

(INR 2.69-4.25 Lakh)

Renault updated its hatchback series with an upgraded model of kwid. The point of attraction about the new model is the availability of a 1.0 liter fuel engine. Having a similar design language and key features, the model is available in two variants RXT and RXT (O). After the launching of the previous variant, the automobile manufacturing firm has reportedly working on a more powerful variant and the results are finally out.


The 1.0 liter kwid was previously seen in 2016 Auto Expo held in February. The latest model of Kwid comes with a 1.0-liter engine coupled including 999cc, 3-cylinder, DOHC unit, which is capable of developing 68PS of maximum power and 91 Nm of torque. A 5-speed manual transmission unit is provided by the company to deliver the power of engine to wheels. Apart from these, the graphical part of the model also got little changes, as the current model features dual-toned grey coloured ORVMs, designer chequered ravishing stickers on the side, and an SCe named batch on the boot lid. The RXT variant of the model comes at a price tag of Rs 3,82,777 whereas the RXT (O) variant of the model comes at Rs 3,95,776.

Hyundai Eon

(INR 3.33 – 4.64 Lakh)

Eon is one of the best selling models from Hyundai and is quite expressive in terms of appearance. It’s based on company’s futuristic design with fine lines on both sides and detailed work at certain portions. The grille on the front is flanked by a pair of swept back headlamps, fog lamps are neatly positioned at the lower bumper and the bonnet looks creased as well as muscular. The cabin is not much spacious but it offers 215 litres of boot space that is a necessity of every Indian family. It gets front power windows, well cushioned seats, music system accompanied by AUX and USB connectivity.

Hyundai Eon

Mechanically, it is fitted with an 814 cc, 3-cylinder engine that pumps out maximum power of 55.2 Bhp at 5500 rpm and a peak toque of 7.6 kg at 4000 rpm. The output is transmitted to the wheels via a 5-speed manual gearbox and ARAI certifies the Eon with 21.1 km/l of mileage. For safety, it is offered with equipments like driver side airbag, front and floor impact beams, child safety locks and engine immobilizer as well as fog lamps for the top end variants.

Tata Tiago

(INR 3.35 – 5.94 Lakhs)

The list of best hatchbacks would be incomplete without the latest Tata Tiago model that has been introduced recently. It is said to be the best Tata product so far and has all the potential to be your favorite choice among all the other options in the segment. Starting from exterior, there is a honeycomb radiator grille on the fascia that houses the 3D company log along with a chrome lining running across its length. Further, it has sharp character lines, plastic cladding, 14-inch alloys, rear spoiler and a black colored segment at the rear bumper that breaks the monotony.


Inside, there is a Black & Grey ambiance and the center console gets a glossy black finish. The top end variants are equipped with amenities like Harman powered infotainment system with 8 speakers, steering mounted controls, Juke Car App and turn by turn navigation. Mechanically, it has been rolled out with both diesel and petrol motors fitted with a 1.2 litre Revotron and a 1.05 litre Revotorq unit respectively. As of now, there is just a 5-speed manual gearbox for handling transmission.

Datsun Go

(INR 2.44 – 3.65 Lakh)

This low cost hatch looks large at first sight, but eventually you will find the car to be devoid of a lot of features. However considering the price tag of the car, the fitments like honeycomb grille with chrome accents, unpainted mirror, single wiper and the absence of fog lamps are justifiable.

As we move in there is a flowing dashboard and the gear shifter is mounted on it that saves a lot of space. There are front power windows and bucket seats at the front with adjustable setting, while the ORVMs are manually adjustable.

Datsun Go

Talking about the safety, it is packed with important fitments like front & rear seatbelts, child lock, manual central locking, and engine immobilizer. ABS and airbags are not even optional in any of the variants. Under the hood, it gets a 1.2 litre, 3-cylinder motor that can efficiently make 68PS and 104 Nm of maximum output that is sent to the wheels via a 5-speed manual facility. The fuel efficiency claimed by the company is measured around 20.63 km/l.

Also Read: Upcoming Cars in India 2016 With Price And Launch Date

Maruti Suzuki Alto K10

(INR 3.38 – 4.29 Lakh)

Alto K10 is an upmarket version of the Alto model which has gained a lot of success in its segment mainly due to the fuel efficiency and driving dynamics. The body-colored bumper, new headlamps, stylish fog lamps at the front and wheel covers make it look appealing. Coming inside, it gets loaded with a lot of comfort features in the form of a climate control unit with heater, front power window, seat headrests and a lot of legroom, headroom as well as shoulder room.

Maruti Suzuki Alto K10

Safety is taken care of by a host of features like fog lamps, child lock, engine immobilizer, central locking, ABS and EBD. Under the hood, it gets fitted with a 1 litre, 3-cylinder petrol motor that makes 68PS at 6200 rpm and 90 Nm of peak torque at 3500 rpm. The fuel economy stands at 20.2 km/l and transmission is handled by a 5-speed manual tranny.

Chevrolet Spark

(INR 3.78 – 4.37 Lakh)

Spark is an entry level hatch from Chevrolet, which efficiently balances the quirky exteriors with well-equipped interior. It gets chrome grille, silver roof rails, oval tail lamps, distinctive headlamps and unique shaped housing for fog lamps. Inside, the dashboard contains instrument cluster exactly in the middle along with the presence of equipments like power windows, power steering, rear defogger, etc.


Powered by a 1000 cc 4-cylinder S-Tec petrol engine, the output generated stands at 63 Bhp. Transmission is handled by a 5-speed manual tranny and the mileage ranges between 15-21 km/l depending upon the driving conditions. Safety issues are managed by features like central locking, door ajar warning, child safety locks, side & front impact beams, day/night rear view mirror, and rear seat belts.

Datsun Go+ MPV

(INR 3.94 – 5.07 Lakh)

Datsun Go+ is an extended version of Go hatchback that belongs to the MPV segment. Unlike all other Multi-Utility Vehicles that offer a configuration of 7-8 seats, this one is available with 5+2 setting, whereby the rear seats are ideal for kids. The front grille forms the shape of a hexagon and the side profile is quite expressive with fenders fitted on them. One can also get the car customised with stylish alloys, roof rails and rear spoiler.


For comfort, there are various features like fabric upholstery, rear seat headrest, air quality control, power steering, remote trunk opener, and adjustable seats. Safety is handled by a host of components like central locking, driver airbag, rear seatbelts, crash sensor, engine immobilizer, side & front impact beams and child safety locks. It is powered by a 1.2 litre petrol engine that is mated to a 5-speed manual gearbox. Mileage ranges between 16.3-20.62 km/l.

Hyundai i10

(INR 4.69 – 7.49 Lakh)

This hatch is definitely a head turner when it comes to the exterior features and smartly designed elements. It gets a hexagonal shape on the front fascia, large headlamps, elegant fog lamps, rear spoiler and integrated brake lamp. On the inside, it offers 225 litres of boot space, centre console with blue back-lighting, and steering mounted audio controls.

Hyundai i10

Coming to the mechanical configuration, there are 2 engine options- 1.1 litre and a 1.2 litre motor. The former makes 69 PS of power and delivers mileage of 19.81 km/l, whereas the latter is good enough to pump out 80 PS alongside 111 Nm of peak torque. With this powertrain, the fuel economy stands at 20.36 km/l. Safety is ensured by components like power door locks, child safety locks, engine immobilizer, rear seatbelts, seatbelt reminder, side & front impact beams, etc.

Maruti Suzuki Celerio

(INR 4.17 – 6.07 Lakh)

This hatch is based on the A-Wind concept and gets more practical design rather than being stylish. From outside, it gets a twin slat chrome grille, a pair of large sept back headlamps, large air dam and power antenna. The interior gets well cushioned seats, 60:40 split for the rear seats, flowing dashboard and much more.

Maruti Suzuki Celerio

The engine includes a 1 litre, 3-cylinder K-Series petrol mill that is efficient enough to generate 67Bhp and 90Nm of maximum output. The manual variant gets a 5-speed tranny, while the automatic one gets a 4-speed automatic facility. It’s highly fuel efficient with the ARAI rated mileage of 23.1 km/l. It gets dual front airbags, impact beams for safety and an electronic power steering for better manoeuvring.

Apart from the afore mentioned hatchbacks, there is one more prominent player in the same segment under INR 5 Lacs that’s a suitable choice for the first time buyers. This car named Maruti Wagon R is highly successful and is a big hit among the Indian buyers. Let’s take a look at its features, which make it a distinctive compact offering.

Maruti Suzuki Wagon R

(INR 4.24 – 5.48 Lakh)

In spite of the not-so-impressive appearance, Wagon R is admired by a lot of buyers with small families. Factors like easy handling, fuel efficiency, cabin space and an attractive price tag have determined the amount of success it has been gaining from the last few years. On the outside, it gets a large bumper, wide airdam, narrow grille with chrome detailing, sporty fog lamps and roof rails. The Black & Beige dual tone of the interior flaunts the presence of many equipments like electronic power steering, audio system with USB connectivity, electric ORVMs, climate control unit and well-cushioned seats.

Maruti Suzuki Wagon R

The engine is fitted with a 1 litre. 3-cylinder petrol unit that pumps 67.1 Bhp at 6200 rpm and 90 Nm peak torque at 3200 rpm. The mileage delivered ranges between 14.2-18.9 km/l for the petrol version, while in the CNG variant, it is measured at around 20.2 kg/km for the highway roads.

Final Words

So, this was our compilation on best cars in India under INR 5 Lacs 2016 along with all the necessary details as well as mechanical specs. All the cars in the above list are considered to be an ideal choice for the first time buyers and if you are planning to buy a compact 4-wheeler for the first time, it will surely offer a great help in you decision making.

What do you think about our detailed list of best cars in India under INR 5 Lacs 2016? Was it useful? You can let us know about your valuable opinion in the comments section below.