Are you also looking for a feature-packed car within your budget? In 2025, the Indian automobile sector is filled with numerous options that suit individual needs, budgets, and preferences. You can choose from the wide range of available cars under 7 Lakh that also combine affordability, comfort, performance, and style.
Whether you’re a first-time buyer, a city commuter, or someone just looking for a decent upgrade, you can find a perfect car under 7 lakh as per your requirements. You can choose a suitable hatchback, compact sedan, or an entry-level SUV with decent mileage, practical comfort, and modern safety features. All this will be available within your budget of 7 lakh.
If you’ve a clear understanding of your requirements, then choosing a car under 7 lakh is not a daunting task. The following guide highlights the 14 best cars available in the Indian market under a budget of 7 lakh. Exploring the list of the most reliable and economical picks in 2025 will help you make an informed decision based on your needs and preferences.
Explore our curated list of the best cars under ₹7 Lakhs in India for 2025. These models offer the perfect blend of affordability, features, and performance. All the cars on the list are ideal for first-time buyers, small families, and budget-conscious individuals seeking value and style without compromising on quality.
Category | Car Model Name | Approximate On-Road Price |
Hatchback | Maruti Suzuki Alto K10 | ₹6.31 Lakh |
Mini-SUV | . Maruti Suzuki S-Presso | ₹6.06 Lakh |
Hatchback | Renault Kwid | ₹5.46 Lakh |
Hatchback | Tata Tiago | ₹5.57 Lakh |
Hatchback | Hyundai Grand i10 Nios | ₹5.98 Lakh |
Hatchback | Maruti Suzuki Celerio | ₹ 5.64 Lakh |
MPV | Maruti Suzuki WagonR | ₹5.80 Lakh |
Hatchback | Tata Altroz | ₹ 6.65 Lakh |
SUV | Tata Punch (Base Variant) | ₹7.00 Lakh |
SUV | Hyundai Exter (Base Variant) | ₹6.70 Lakh |
Sedan | Hyundai Aura | ₹6.54 Lakh |
Sedan | Maruti Suzuki Dzire | ₹6.84 Lakh |
SUV | Nissan Magnite (XE Variant) | ₹6.38 Lakhs |
SUV | Renault Kiger | ₹6.15 Lakh |
The Maruti Suzuki Alto K10 comes in a compact size with low pricing. This is what makes it attractive for first-time buyers. If you’re someone bustling on the Indian urban roads, then this compact-sized hatchback is a perfect choice for you. It’s super simple to maneuver, and it also has an AMT option to offer better convenience.
Engine: 1.0L K10C Petrol
Power: 67 PS
Torque: 89 Nm
Transmission: 5-speed Manual / AMT
Mileage: ~24.39 km/l (Petrol)
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 214 litres
Safety: Dual airbags, ABS with EBD
Infotainment: 7-inch SmartPlay Studio (top variant)
This is a compact hatchback with an SUV-inspired styling, ideal for city driving. It can offer supreme performance and impressive mileage. The top features include high ground clearance, touchscreen infotainment, and easy maneuverability. It could be a budget-friendly and youthful choice for urban commuters in 2025.
Engine: 1.0L K10C Petrol
Power: 67 PS
Torque: 89 Nm
Transmission: 5-speed Manual / AMT
Mileage: ~24.76 km/l
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 240 litres
Safety: Dual airbags, ABS with EBD
Infotainment: Touchscreen with smartphone connectivity
When talking about a stylish entry-level hatchback with an SUV-like design, the Renault Kwid stands as a top choice. It has so much to offer, like a digital instrument cluster, touchscreen infotainment, good mileage, and a spacious cabin. The Renault Kwid model could be an ideal choice for those seeking affordability with a bold design.
Engine: 0.8L / 1.0L Petrol
Power: 54 PS (0.8L) / 68 PS (1.0L)
Transmission: 5-speed Manual / AMT
Mileage: ~22.3 km/l
Fuel Type: Petrol
Seating Capacity: 5
Boot Space: 279 litres
Safety: Dual airbags, reverse parking sensors
Infotainment: 8-inch touchscreen with Android Auto/Apple CarPlay
The Tata Tiago is known for its strong build quality, excellent safety features, and a refined petrol engine. This hatchback model will offer great value for money because of its premium interiors and attractive design. Dual airbags, infotainment features, safety enhancements, and decent pricing make it an affordable car under 7 Lakh.
Engine: 1.2L Revotron Petrol
Power: 86 PS
Torque: 113 Nm
Transmission: 5-speed Manual / AMT
Mileage: ~19 – 20 km/l
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 242 litres
Safety: 4-star GNCAP, dual airbags, ABS with EBD
Infotainment: 7-inch Harman system (top variants)
If you’re looking for a premium hatchback with modern styling, spacious interiors, and reliable performance, the Hyundai Grand i10 Nios is the car you might be looking for. This car offers wireless phone connectivity, smooth handling, great ride comfort, and high fuel efficiency. It’s available in diesel, petrol, and CNG variants.
Engine: 1.2L Petrol
Power: 83 PS
Torque: 114 Nm
Transmission: 5-speed Manual / AMT
Mileage: ~20.7 km/l
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 260 litres
Safety: 6 airbags (top variant), ESC, Hill Assist
Infotainment: 8-inch touchscreen with smartphone connectivity
Maruti Suzuki Celerio is an ideal option for everyday commuters as it offers the best-in-class mileage. This is because of its 1.0L DualJet engine and the feature of Auto Gear Shift (AGS). You’ll get a roomy cabin, a practical design, and high-end engine performance. If you’re someone seeking convenience and economy, then this is the go-to option for you.
Engine: 1.0L K10C Petrol
Power: 67 PS
Torque: 89 Nm
Transmission: 5-speed Manual / AMT
Mileage: ~25.24 km/l (Petrol), 34.43 km/kg (CNG)
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 313 litres
Safety: Dual airbags, ABS with EBD
Infotainment: 7-inch SmartPlay Studio
The Maruti Suzuki WagonR is a highly popular model among budget-conscious and middle-class buyers. It offers highly innovative and premium features at a low price, making it a suitable choice for urban families. It also has low maintenance costs with no additional high-end expenses, and has a great resale value in the market.
Engine: 1.0L & 1.2L Petrol
Power: 67 PS (1.0L) / 89 PS (1.2L)
Transmission: 5-speed Manual / AMT
Mileage: ~24.35 km/l (Petrol), 34.05 km/kg (CNG)
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 341 litres
Safety: Dual airbags, ABS with EBD
Infotainment: 7-inch touchscreen
The Tata Altroz is an exceptional choice for those keeping safety as a priority. You can rely on this car as it has received a prestigious 5-star Global NCAP safety rating. When talking about unmatched safety features with a sporty design, Tata Altroz remains a worth considering hatchback car under 7 lakh.
Engine: 1.2L Petrol
Power: 88 PS
Torque: 115 Nm
Transmission: 5-speed Manual
Mileage: ~18.5 – 19.3 km/l
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 345 litres
Safety: 5-star GNCAP rating, dual airbags, ABS
Infotainment: 7-inch touchscreen with Harman sound
The Tata Punch base variant is one of the most reliable car options available under 7 lakh. It has a solid construction and offers high ground clearance, making it perfect for Indian roads. The base variant has an SUV-like design with a robust build, impressive safety features, versatility, and performance. You can get all this even on your tight budget.
Engine: 1.2L Revotron Petrol
Power: 88 PS
Torque: 115 Nm
Transmission: 5-speed Manual
Wheelbase: 2445 mm
Mileage: ~20.09 km/l
Fuel Type: Petrol
Seating Capacity: 5
Boot Space: 366 litres
Safety: 5-star GNCAP rating, dual airbags
When looking for cars under 7 lakh, the Hyundai Exter base variant can offer you everything as a small SUV. This base variant is highly popular in the Indian market due to its strong build and dramatic design. It comes with all the essential features and a good space. The Hyundai Exter targets urban drivers looking for a stylish and affordable SUV.
Engine: 1.2L Kappa Petrol
Power: 83 PS
Torque: 113.8 Nm
Transmission: 5-speed Manual
Mileage: ~19.4 – 20.1 km/l
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 391 litres
Safety: 6 airbags standard
Infotainment: Basic in base variant
If you also wonder whether you can have a sedan car under 7 lakh or not, then the Hyundai Aura is the answer for you. It’s a trendy sedan equipped with the latest technologies, modern design, and comfortable interiors. You can have supreme comfort and a pleasant ride experience with the Hyundai Aura sedan.
Engine: 1.2L Petrol
Power: 83 PS
Torque: 114 Nm
Transmission: 5-speed Manual / AMT
Mileage: ~20.3 km/l (Petrol), 28 km/kg (CNG)
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 402 litres
Safety: 4 airbags standard, optional 6 airbags
Infotainment: 8-inch touchscreen (top variant)
The Maruti Suzuki Dzire has always been a top choice among Indian consumers. It is a compact sedan, offering superb mileage, elegant styling, low maintenance costs, and great fuel economy. You’ll also get high-end features like touchscreen infotainment and spacious seating. The Dzire model is a solid option for buyers seeking comfort, practicality, and value.
Engine: 1.2L DualJet Petrol
Power: 90 PS
Torque: 113 Nm
Transmission: 5-speed Manual / AMT
Mileage: ~22.41 km/l (Petrol), 31.12 km/kg (CNG)
Fuel Type: Petrol / CNG
Seating Capacity: 5
Boot Space: 378 litres
Safety: Dual airbags, ABS with EBD
Infotainment: 7-inch touchscreen
The Nissan Magnite XE variant is a great vehicle option for those looking for a budget-friendly SUV without compromising on the premium features. It offers a bold design, good ground clearance, ample cabin space, and all the essential safety features. The XE variant also comes with innovative features like wireless Apple CarPlay and Android Auto.
Engine: 1.0L NA Petrol
Power: 72 PS
Torque: 96 Nm
Transmission: 5-speed Manual
Mileage: ~19.35 km/l
Fuel Type: Petrol
Seating Capacity: 5
Boot Space: 336 litres
Safety: Dual airbags, ABS with EBD
Renault Kiger is a sporty and feature-rich compact SUV available in a base variant under ₹7 lakh. It combines functionality with athleticism, offering spacious interiors, cutting-edge infotainment, and strong road presence. The Kiger is an attractive option for budget SUV enthusiasts who seek modern styling and good fuel economy.
Engine: 1.0L NA Petrol
Power: 72 PS
Torque: 96 Nm
Transmission: 5-speed Manual
Mileage: ~19.17 km/l
Fuel Type: Petrol
Seating Capacity: 5
Boot Space: 405 litres
Safety: Dual airbags, ABS with EBD
Infotainment: 8-inch touchscreen (in higher variants)
Here are some of the best car options under ₹7 Lakh in 2025, categorized based on usage, features, and value to help you decide better.
Category | Best Car Under ₹7 Lakh | Why It Stands Out |
Best Mileage Car | Maruti Suzuki Celerio CNG | Excellent mileage and best for budget-conscious buyers |
Best City Drive Car | Maruti Suzuki Alto K10 | Compact design and excellent fuel efficiency |
Best Safety Features | Tata Tiago | Dual airbags, ABS with EBD, and solid build quality |
Best for First-Time Buyers | Renault Kwid | Attractive design, user-friendly features, and value for money |
Best Mini SUV | Tata Punch Pure | SUV-like stance, high ground clearance, and feature-rich, even in the base model. |
Best CNG Option | Maruti Suzuki WagonR CNG | Reliable engine, spacious interiors, and impressive mileage of 34.05 km/kg (CNG) |
READ ALSO: Top 10 Luxury Cars in India: Cost, Mileage & Buying Tips
Choosing the right car under ₹7 lakh in 2025 depends mainly on your requirements. The Indian automobile market has something to offer to budget-conscious buyers with different preferences for mileage, space, or features.
From hatchbacks to sedans, you may get excellent value-packed options under your ₹7 Lakh budget. Always remember to assess your priorities, compare the features and specifications, and pick the model that best suits your lifestyle needs and budget.