Best Cars Under ₹10 Lakh in India: Top Budget-Friendly Picks for 2025

Buying a new car is one of the most exciting decisions for Indian families. Whether you’re purchasing your first vehicle, upgrading to something more spacious, or seeking better mileage for daily commutes, the under ₹10 lakh segment remains the most competitive and value-packed category in the Indian automobile market. Over the last few years, this segment has evolved rapidly, offering advanced features, enhanced safety, stylish designs, and improved engine performance—ensuring that buyers don’t have to compromise despite sticking to a budget.

This detailed guide explores the top cars under ₹10 lakh in 2025, what makes them stand out, and how to choose the right one for your needs.

Why Are Cars Under ₹10 Lakh So Popular in India?

The ₹10 lakh price range appeals to a wide range of buyers for several reasons:

1. Perfect Balance of Features and Affordability

You get premium features such as touchscreen infotainment systems, reverse cameras, wireless connectivity, digital instrument clusters, and even sunroofs—without stretching your budget.

2. Wide Range of Options

From hatchbacks and sedans to compact SUVs and micro-SUVs, the range of choice is massive, allowing buyers to choose a car that matches their lifestyle.

3. Growing Focus on Safety

Manufacturers like Tata, Hyundai, and Volkswagen are offering strong safety packages with multiple airbags, ABS, EBD, and high Global NCAP scores—even in their budget models.

4. Low Maintenance Costs

Cars in this segment often come with low running and servicing costs, making them ideal for both city usage and long-term ownership.

Top Cars Under ₹10 Lakh in India (2025)

Below are some of the best cars under ₹10 lakh, based on performance, features, mileage, safety, and value for money.

1. Tata Punch

The Tata Punch has taken the micro-SUV segment by storm. With its rugged looks, high ground clearance, and 5-star safety rating, it appeals to both young buyers and families.

Key Highlights

• 1.2-litre petrol engine

• 5-star Global NCAP safety rating

• High ground clearance suitable for Indian roads

• Impressive interior space for a compact vehicle

Why Buy It?

For buyers who want SUV styling and great safety on a budget, the Punch stands out as one of the strongest options.

2. Maruti Suzuki Baleno

The Baleno is one of India’s bestselling premium hatchbacks. Known for its reliability, comfort, and fuel efficiency, it remains a favourite in the under ₹10 lakh category.

Key Highlights

• 1.2-litre DualJet petrol engine

• Excellent mileage of up to 22.9 km/l

• Premium interiors and spacious cabin

• Smooth and refined driving experience

Why Buy It?

The Baleno offers a practical mix of comfort, efficiency, and Maruti’s unmatched service support.

3. Hyundai i20

The Hyundai i20 continues to be the benchmark for premium hatchbacks. It offers a sporty design, advanced tech, and excellent comfort.

Key Highlights

• Large touchscreen infotainment system

• Bluelink-connected car features

• Strong road presence

• Smooth ride quality

Why Buy It?

If you value features, interior quality, and modern styling, the i20 is a top pick within this price range.

4. Maruti Suzuki Fronx

One of the newest entrants, the Maruti Fronx is stylish, youthful, and loaded with features. Its coupe-inspired design sets it apart from other cars in this budget.

Key Highlights

• Boosterjet turbo engine option

• Bold crossover styling

• Good ground clearance

• Fuel-efficient and lightweight body

Why Buy It?

Ideal for those who want a stylish crossover with good features and low running costs.

5. Hyundai Exter

The Hyundai Exter brings a fresh look to the micro-SUV category and offers unmatched features for its price.

Key Highlights

• Segment-first sunroof

• Dual dashcam

• Strong build and modern design

• Good cabin space and mileage

Why Buy It?

If you want a feature-loaded micro-SUV with premium touches, the Exter offers exceptional value.

6. Renault Kiger

The Kiger is a stylish and practical compact SUV offering powerful turbo engine options and a spacious interior layout.

Key Highlights

• Wireless smartphone connectivity

• Turbo-petrol engine with strong performance

• Best-in-segment boot space (405L)

• Attractive dual-tone colours

Why Buy It?

The Kiger is perfect for families seeking a budget-friendly SUV with solid performance and space.

7. Tata Tiago

One of the safest hatchbacks in India, the Tata Tiago is perfect for small families and first-time buyers.

Key Highlights

• 4-star Global NCAP rating

• CNG option available

• Modern cabin with touchscreen infotainment

• Strong build quality

Why Buy It?

For anyone looking for a safe, affordable, and low-maintenance hatchback, Tiago is a smart option.

8. Maruti Suzuki Swift (New Gen)

The new-generation Swift retains its sporty DNA while offering improved safety and modern interiors.

Key Highlights

• New efficient 1.2L Z-series engine

• Sporty design

• Good mileage and nimble handling

• Updated interior quality and features

Why Buy It?

A great pick for enthusiasts and city commuters who love a fun-to-drive hatchback.

How to Choose the Best Car Under ₹10 Lakh

With so many choices available, selecting the right car can feel overwhelming. Consider the following factors before deciding:

1. Define Your Purpose

Your usage determines the type of car you should buy:

• Daily commute: Hatchbacks like Baleno, Tiago

• Family trips & more space: SUVs like Kiger, Punch, Exter

• Style-focused buyers: Fronx, i20

2. Evaluate Safety Ratings

A good safety rating is essential, especially for families. Cars like Tata Punch, Tiago, and some Hyundai models excel in safety.

3. Compare Fuel Options

• Petrol: Best for most users

• CNG: Cheapest running cost but slightly lower power

• Diesel: Ideal for high-mileage users

4. Check After-Sales Service

Maruti and Hyundai dominate in service network quality, but Tata and Renault are improving rapidly.

5. Look for Practical Features

Useful features worth prioritizing include:

• Reverse camera

• ABS with EBD

• Touchscreen infotainment

• Steering-mounted controls

• Height-adjustable driver seat

Conclusion

The under ₹10 lakh car segment in 2025 is filled with exceptional options that offer style, comfort, safety, and modern technology—all at a budget-friendly price. Whether you prefer the ruggedness of the Tata Punch, the premium feel of the Hyundai i20, the practicality of the Renault Kiger, or the efficiency of the Maruti Baleno, there’s a car for every need and lifestyle.

By considering your daily usage, safety requirements, fuel preference, and long-term maintenance plans, you can confidently choose a car that will serve you well for years. The Indian automobile industry’s focus on innovation and value means customers no longer need to compromise, even on a budget. At updatemee, we bring you the latest updates, reviews, and comparisons from the world of automobiles.