Looking to buy a budget car in India under ₹6 lakh in 2025? With GST 2.0 reducing taxes from 28% to 18%, your money goes further. But finding reliable information online is tough. We’ve done the research for you and ranked the top 10 value-for-money cars based on engine reliability, safety, comfort, fun-to-drive factor, and after-sales service.
This guide is perfect for first-time car buyers in India.
Maruti Alto K10 – Reliable Small Car
The Alto K10 is India’s trusted small car for over 25 years.
- Engine: 3-cylinder 1000cc, 66 BHP, 89 Nm torque
- Transmission: Manual & Automatic
- Mileage: 24 km/l
- Boot Space: 214 liters
- Ground Clearance: 160 mm
- Recommended Variant: Alexi (~₹5,52,000)
- Safety: 2-star Global NCAP, 6 airbags, ESP
A smooth and silent engine makes it fun to drive, though boot space is limited. Start with the Alexi variant for better features.
Renault Kwid – Stylish & Feature-Packed
Renault Kwid offers SUV-like styling in a small hatchback.
- Engine: 3-cylinder 1000cc, 67 BHP, 91 Nm torque
- Mileage: 24 km/l
- Boot Space: 269 liters
- Ground Clearance: 184 mm
- Recommended Variant: Authentic (~₹5,76,000)
- Safety: 1-star Global NCAP, 6 airbags, ESP, traction control
Kwid gives extra space and better ground clearance than Alto K10, plus modern safety features.
Maruti Suzuki Apresso – Small SUV Feel
The Apresso is a budget-friendly compact SUV with Alto K10’s trusted engine.
- Mileage: 24 km/l
- Boot Space: 240 liters
- Ground Clearance: 180 mm
- Recommended Variant: Alexi (~₹4,99,000)
- Safety & Features: Dual airbags, ESP, digital display, rear parking sensor
It’s perfect for city drives and rural roads, offering comfort and reliability.
Maruti Suzuki Celerio – High Mileage Hatchback
Celerio is compact but spacious with modern design.
- Mileage: 25 km/l (highest in this list)
- Boot Space: 313 liters
- Ground Clearance: 170 mm
- Recommended Variant: LXI
- Safety: 0-star Global NCAP, 6 airbags, ESP
Celerio combines fuel efficiency, space, and practicality, making it a solid small car choice.
Renault Triber – Sub-4-Meter Six-Seater
Triber is India’s only sub-4-meter six-seater car.
- Mileage: 20 km/l
- Boot Space: 84 liters (with all seats)
- Ground Clearance: 182 mm
- Safety: 4-star Global NCAP
- Features: 6 airbags, ESP, TPMS, projector headlamps, removable third-row seats
It’s flexible for six-seater or five-seater use and ideal for city drives.
Maruti Wagon R – Tall Boy Hatchback
Wagon R is a practical family car with a tall-boy design.
- Mileage: 24 km/l
- Boot Space: 341 liters
- Ground Clearance: 165 mm
- Recommended Variant: Alexi
- Safety: 1-star Global NCAP
It provides a balanced mix of space, comfort, and driving experience with reliable engine performance.
Tata Tiago – Stylish & Powerful
Tiago is compact, stylish, and powerful with a 1200cc three-cylinder engine.
- Mileage: 19 km/l
- Boot Space: 242 liters
- Ground Clearance: 170 mm
- Recommended Variant: XE (~₹4,99,000)
- Safety: 4-star Global NCAP
It offers good build quality and enjoyable driving, though mileage is slightly lower than competitors.
Hyundai Grand i10 Nios – Compact & Comfortable
Grand i10 Nios offers four-cylinder 1200cc engine, smooth drive, and reliable service.
- Mileage: 18 km/l
- Boot Space: 260 liters
- Ground Clearance: 165 mm
- Recommended Variant: Era
- Safety: 2-star Global NCAP, 6 airbags, reverse parking sensor
Perfect for those seeking compact cars with strong engine performance.
Maruti Suzuki Ignis – Stylish & Practical
Ignis is an underrated hatchback with strong engine and good features.
- Engine: 1200cc four-cylinder
- Mileage: 21 km/l
- Boot Space: 260 liters
- Ground Clearance: 180 mm
- Recommended Variant: Sigma
- Safety: 1-star Global NCAP
Ignis is a smart, stylish, and value-for-money hatchback, especially with discounts.
Hyundai XTR – Top SUV-Like Hatchback
XTR tops the list due to SUV-like design, spacious interiors, and comfort.
- Engine: 1200cc, 82 BHP
- Mileage: 19 km/l
- Boot Space: 391 liters (largest in this list)
- Ground Clearance: 185 mm
- Recommended Variant: EX (~₹5,99,000)
- Safety & Features: 6 airbags, reverse parking sensor, keyless entry, digital driver display
XTR is the ultimate choice for 2025 for first-time buyers who want space, comfort, and confidence while driving.
Best Budget Cars 2025
From Alto K10 to Hyundai XTR, these cars offer value, safety, comfort, and reliability. Whether you need a practical hatchback, small SUV vibe, or family car, this list has you covered.
First-time buyers can use this guide to choose the perfect budget car in India under ₹6 lakh in 2025.