Buying a car in India under ₹10 lakh is one of the most practical and value-driven decisions for middle-class families, working professionals, and first-time buyers. With rising fuel prices and evolving technology, today’s budget cars offer much more than just affordability — they deliver modern features, safety, mileage, and comfort. From stylish hatchbacks to compact sedans and feature-packed compact SUVs, buyers now have a wide range of options that cater to different lifestyles and driving needs.
If you’re planning to buy a new car without stretching your budget, this detailed guide will help you choose the right vehicle by comparing performance, mileage, safety ratings, maintenance costs, resale value, and after-sales service. Whether your priority is daily city commuting, long highway drives, family comfort, or fuel efficiency, selecting the right car requires careful evaluation of multiple factors beyond just the price tag.
Additionally, government safety regulations, improved build quality, and advanced infotainment systems have significantly enhanced the overall ownership experience in this price segment. Many cars under ₹10 lakh now come equipped with touchscreen displays, connected car technology, reverse parking cameras, multiple airbags, ABS, and powerful engines that deliver both efficiency and performance. This makes budget cars not just economical, but also smart and future-ready investments.
By understanding your personal requirements, driving habits, and long-term ownership costs, you can make a well-informed decision that ensures satisfaction, reliability, and peace of mind for years to come. This guide simplifies the selection process by presenting the best car options available in India under ₹10 lakh, helping you find the perfect balance between affordability, features, and driving pleasure
Why Choose a Car Under ₹10 Lakh?
Cars in this price segment are popular because they offer:
- Affordable purchase and maintenance cost
- Good fuel efficiency
- Modern safety features
- Low insurance premiums
- Easy availability of spare parts
- High resale value
Most cars under ₹10 lakh fall into hatchback and compact sedan categories, making them ideal for city driving and small families.
Top Budget Cars Under ₹10 Lakh in India (2026)
Below are some of the best options available in the Indian market.
1. Maruti Suzuki Swift
Price Range: Approx ₹6 – ₹9.5 Lakh (Ex-showroom)
The Maruti Suzuki Swift continues to dominate the Indian market due to its sporty design, exceptional reliability, and strong resale value, making it one of the most preferred hatchbacks in the country. Its bold exterior styling, premium interiors, and driver-focused cabin create a perfect balance of comfort and performance. Powered by a refined petrol engine, the Swift delivers impressive fuel efficiency while maintaining a smooth and responsive driving experience, ideal for both city commutes and highway journeys. The car is equipped with modern features such as a touchscreen infotainment system, steering-mounted controls, automatic climate control, and advanced safety features including dual airbags, ABS with EBD, and reverse parking sensors. Low maintenance costs, widespread service network, and affordable spare parts further enhance its appeal, making the Swift a practical and value-for-money choice.
Key Features:
- 1.2L petrol engine
- Excellent mileage (around 22–24 km/l)
- Smooth manual and automatic options
- Low maintenance cost
- Modern infotainment system
Why Buy?
Perfect for city users who want performance + fuel efficiency.
2. Tata Punch
Price Range: Approx ₹6 – ₹9.8 Lakh (Ex-showroom)
If you want SUV styling within a small budget, Tata Punch is a strong and practical choice for Indian buyers. Designed with a bold micro-SUV look, the Punch stands out with its high ground clearance, muscular stance, and rugged build quality. It is powered by a reliable petrol engine that delivers smooth performance and excellent fuel efficiency for daily city commuting. The cabin offers a spacious feel, comfortable seating, and a modern touchscreen infotainment system with smartphone connectivity. Safety is a major highlight, as Tata Punch comes equipped with dual airbags, ABS with EBD, rear parking sensors, and a strong body structure, earning a high safety rating. With low maintenance costs, good ride comfort, and compact dimensions, the Tata Punch is ideal for urban families, first-time buyers, and young professionals.
Key Features:
- 5-star Global NCAP safety rating
- High ground clearance
- Rugged design
- Good mileage (20 km/l approx)
Why Buy?
Best for safety-conscious buyers looking for SUV feel at hatchback price.
3. Hyundai Grand i10 Nios
Price Range: Approx ₹5.8 – ₹9.5 Lakh (Ex-showroom)
Hyundai offers premium interiors and feature-rich models in the budget segment, and the Hyundai Grand i10 Nios perfectly reflects this philosophy. With its stylish exterior design, refined cabin layout, and superior build quality, the Grand i10 Nios delivers a premium hatchback experience at an affordable price. The car is powered by smooth and efficient petrol and CNG engine options, ensuring excellent mileage and comfortable driving performance. Inside, it features a modern touchscreen infotainment system, wireless Android Auto and Apple CarPlay, rear AC vents, wireless charging, and steering-mounted controls for enhanced convenience. Safety features include dual airbags, ABS with EBD, electronic stability control, and rear parking sensors. Its low maintenance cost, strong service network, and comfortable ride quality make the Grand i10 Nios a reliable and practical choice for daily commuting and family use.
Key Features:
- Stylish dashboard design
- Touchscreen infotainment system
- Wireless Android Auto & Apple CarPlay
- Smooth petrol engine
Why Buy?
Ideal for buyers who want premium interior and comfort features.
4. Tata Altroz
Price Range: Approx ₹6.6 – ₹9.9 Lakh (Ex-showroom)
Tata Altroz is widely known for its strong build quality, stylish design, and premium driving experience in the premium hatchback segment. Built on Tata’s advanced ALFA architecture, the Altroz offers excellent stability, safety, and ride comfort, making it ideal for both city driving and highway journeys. Its sharp exterior styling, bold grille, sleek LED lighting, and sporty alloy wheels give it a modern and dynamic road presence. Inside, the cabin feels spacious and refined, featuring a touchscreen infotainment system, digital instrument cluster, premium upholstery, and rear AC vents for added comfort. Safety is a major highlight, with features like dual airbags, ABS with EBD, electronic stability control, and a high Global NCAP safety rating. With efficient petrol and diesel engine options, low maintenance costs, and impressive fuel efficiency, the Tata Altroz delivers excellent value for money.
Key Features:
- 5-star safety rating
- Spacious cabin
- Petrol and diesel options
- Premium look
Why Buy?
Great for families who prioritize safety and space.
5. Maruti Suzuki Baleno
Price Range: Approx ₹6.8 – ₹9.8 Lakh (Ex-showroom)
Baleno is one of India’s highest-selling premium hatchbacks, known for its stylish design, spacious interiors, and exceptional fuel efficiency. The Maruti Suzuki Baleno offers a perfect blend of performance, comfort, and affordability, making it a top choice among urban families and young professionals. Its sleek exterior, bold front grille, and modern LED lighting give it a premium road presence.
Inside, the Baleno features a large touchscreen infotainment system with Android Auto and Apple CarPlay, a heads-up display, automatic climate control, and a well-designed cabin that enhances driving comfort. Powered by a refined petrol engine, the Baleno delivers smooth performance along with impressive mileage. Safety features include dual airbags, ABS with EBD, electronic stability control, and rear parking sensors. With low maintenance costs, a wide service network, and strong resale value, the Baleno remains a smart and reliable investment.
Key Features:
- Excellent mileage (22+ km/l)
- Smart infotainment system
- Spacious interiors
- Reliable after-sales service
Why Buy?
Best for mileage lovers and resale value seekers.
6. Renault Kiger
Price Range: Approx ₹6 – ₹9.9 Lakh (Ex-showroom)
Renault Kiger offers bold SUV styling, modern features, and a powerful turbo engine option, making it an attractive budget-friendly compact SUV in India. Its aggressive front design, muscular body lines, and high ground clearance give it a strong road presence and confident driving feel on both city roads and highways. The Kiger is available with both naturally aspirated and turbo-petrol engine options, delivering a smooth, responsive, and fuel-efficient performance. Inside, the cabin is spacious and practical, featuring a touchscreen infotainment system, digital instrument cluster, wireless smartphone connectivity, and comfortable seating for five passengers.
Safety features include dual airbags, ABS with EBD, traction control, electronic stability control, and rear parking sensors. With its affordable pricing, low running costs, good ride comfort, and versatile performance, the Renault Kiger stands out as a smart choice for buyers seeking SUV appeal within a limited budget.
Key Features:
- Turbo petrol engine option
- Digital instrument cluster
- High ground clearance
- Bold exterior styling
Why Buy?
Good option for those who want SUV styling with modern features.
Petrol vs CNG vs Diesel – What Should You Choose?
Petrol
- Lower upfront cost
- Smooth and silent engine
- Good for city driving
CNG
- Very fuel-efficient
- Lower running cost
- Slightly less boot space
Diesel
- Better for long-distance travel
- Higher torque
- Slightly expensive maintenance
For city users driving less than 50 km daily, petrol or CNG is usually the best option.
Important Factors to Consider Before Buying
1. Safety Features
Always check for:
- Dual airbags
- ABS with EBD
- Rear parking sensors
- Stability control
Safety should never be compromised.
2. Mileage
Fuel efficiency directly affects long-term expenses. Choose cars offering at least 18–22 km/l for better savings.
3. Maintenance Cost
Brands like Maruti Suzuki and Hyundai are known for affordable service and wide service networks.
4. Resale Value
Cars from trusted brands generally offer better resale value after 5–7 years.
5. After-Sales Service
Ensure service centers are available in your city.
Best Car Under 10 Lakh – Final Recommendation
Here’s a quick summary:
| If You Want | Best Option |
| Best Mileage | Maruti Suzuki Baleno |
| Best Safety | Tata Punch / Tata Altroz |
| Premium Feel | Hyundai Grand i10 Nios |
| Sporty Hatchback | Maruti Suzuki Swift |
| SUV Style | Renault Kiger |
Your final choice depends on your usage, family size, and driving habits.
Should You Buy Now or Wait?
With rising car prices and new emission norms, waiting may increase costs. However, festive seasons often bring discounts and exchange offers.
Tip: Always take a test drive before making your final decision.
The Indian car market in 2026 offers some of the best value-for-money cars under ₹10 lakh, catering to a wide range of needs — whether you prioritize high mileage, advanced safety features, modern design, comfort, or SUV styling. With several manufacturers launching upgraded models, buyers now have more choices than ever before.
From fuel-efficient hatchbacks to feature-packed compact SUVs and stylish sedans, there is a perfect car available for every budget-conscious buyer. Many models now come equipped with touchscreen infotainment systems, advanced driver assistance features (ADAS), multiple airbags, ABS with EBD, rear parking cameras, and connected car technology, making budget cars smarter and safer.
Before finalizing your purchase, always compare features across different variants, check the on-road price in your city, and factor in long-term ownership costs such as servicing, spare parts availability, fuel efficiency, resale value, and insurance. Test driving multiple models can also help you make a more confident decision.
Buying your first car is a proud and exciting milestone. It brings independence, comfort, and convenience to your daily life. Choose wisely, drive responsibly, follow traffic rules, and enjoy every journey with safety and confidence.