Best Luxury Cars Under 20 Lakh in India

Gone are the days when luxury cars were exclusive to the ultra rich. The Indian automobile market has come a long way since and has some stunning feature-loaded cars to offer under ₹20 lakh today. From panoramic sunroofs to leather seats and turbo engines, there are some seriously premium machines out there that don’t need deep pockets.

But not every luxury car would be the right fit for your needs. Some offer great value even after years of use, while others can turn into a maintenance nightmare. That’s why we’ve put together a list of the best luxury cars under ₹20 lakh in India, ones that look sharp, drive smoothly, and still feel premium where it counts.

List of Best Luxury Cars Under ₹ 20 Lakh in India

Here’s a quick overview table to give you the big picture:

Note: Prices mentioned are ex-showroom and may vary slightly based on city and variant availability. On-road pricing may go over ₹20 lakh for higher trims.

1. Jeep Compass

The Jeep Compass is perhaps the most rugged yet premium vehicle under ₹20 lakh. The reason people still swear by it, even with stiff competition, is its exceptional ride quality over bad roads. It doesn't bounce like many compact SUVs; instead, it absorbs potholes, thanks to its frequency-selective damping suspension system, which is rare in this segment.

Under the ₹20 lakh mark, you'll only get the Sport trim; however, it has the same 2.0L Multijet diesel engine that you get on the top models. Hence, you are getting the same driving thrill and torque output without spending over ₹20 lakh. On the inside, you get a 5-inch touchscreen, electrically adjustable ORVMs, and leather seats.

The Jeep Compass has a solid, tank-like build quality with authentic Jeep DNA. The driving position is commanding and even the base infotainment package has a lot to offer. It's perfect for buyers who are more interested in long-term build quality and actual road comfort than in flashy features.

Jeep Compass Specifications

• Engine: 2.0L Diesel / 1.4L Turbo Petrol
• Transmission: 6-speed MT / 7-speed DCT
• Mileage: 17 – 21 kmpl
• Airbags: Up to 6 airbags
• Fuel Type: Petrol / Diesel
• Seating Capacity: 5
• Body Type: SUV

Jeep Compass Key Features

• Frequency-selective damping suspension for exceptional ride quality on poor roads
• Tank-like build quality with exceptional cabin insulation
• Premium leatherette seats and soft-touch dashboard, even on base trims
• 2.0L diesel engine with excellent low-end torque for long highway drives

2. Mahindra XUV700

If you are looking for a luxury car under ₹20 lakh that scores high on looks and features, the Mahindra XUV700 is your car. Both the MX and AX3 variants, under ₹20 lakh, have features and refinement that rival even the ₹30-lakh SUVs.

The standout feature from the AX series is the dual HD screen setup (10.25-inch infotainment + 10.25-inch digital cluster) that flows seamlessly across the dashboard. And it's not just eye candy; it's functional and crisp. Even the base AX3 variant comes with Android Auto and Apple CarPlay, and the MX diesel gets the same 2.2L mHawk engine (albeit in a slightly lower state of tune) as the higher trims, so you're not compromising on punch. The petrol (2.0L mStallion) variant is astonishingly smooth and responsive on urban roads.

The rear legroom is generous, with a recline angle and thigh support calibrated more to provide comfort than economy. Moreover, there are a lot of small but important details, such as the big door thud, smart steering modes, and silky NVH levels, which add a feeling of insulation and comfort that's not normally found at this price level. If you want solid road presence, practicality, and luxury without going over ₹20 lakh, then the XUV700 is your best bet.

Mahindra XUV700 Specifications

• Engine: 2.0L Turbo Petrol / 2.2L Diesel
• Transmission: 6-speed MT / 6-speed AT
• Mileage: 15 – 20 kmpl
• Airbags: Up to 7 airbags
• Fuel Type: Petrol / Diesel
• Seating Capacity: 5 / 7
• Body Type: SUV

Mahindra XUV700 Key Features

• Dual 10.25-inch curved screens with segment-best resolution
• Advanced Driver Assistance Systems (ADAS) from AX5 onwards
• High-tech 2.0L turbocharged petrol and 2.2L diesel with drive modes
• Panoramic sunroof and premium Sony 3D sound in mid/high trims

3. MG Hector / Hector Plus

What actually makes the MG Hector (and its three-row sibling, the Hector Plus) feel luxurious under ₹20 lakh is that raw sense of space and tech-driven cabin architecture. Higher trims get the 14-inch screen, while even base variants pack a 10.4-inch setup that not only controls almost everything but is also voice-activated and works super smoothly.

Even the base models get a 10.4-inch screen, connected car tech, and voice commands that actually work (you can say "Hello MG" to open the sunroof or adjust the AC). But it's not just about the tricks; the rear seating of the Hector is a winner. It offers more legroom than in most D-segment sedans, and the recline angle on the seat makes it an actual chauffeur-driven choice.

The Hector Plus features an additional row, which works best for children or short-distance drives, but the increased flexibility makes it a great choice for families as well. The ride feels very premium and cushioned, and is perfect for cruising on highways. If you want luxury with advanced digital features, super-comfortable driving, and couch-like second-row comfort, the MG Hector should definitely be on your list.

MG Hector / Hector Plus Specifications

• Engine: 1.5L Petrol / 2.0L Diesel
• Transmission: 6-speed MT / CVT / DCT
• Mileage: 12 – 17 kmpl
• Airbags: Up to 6 airbags
• Fuel Type: Petrol / Diesel
• Seating Capacity: 5 / 6 / 7
• Body Type: SUV

MG Hector / Hector Plus Key Features

• Huge 14-inch vertical infotainment screen with voice command
• Rear seats reclining with class-leading legroom
• Connected car tech with over-the-air (OTA) updates
• Panoramic sunroof and powered tailgate (available on mid-trims)

4. Hyundai Creta

The Hyundai Creta has emerged as the default choice for Indians who want to get a taste of "luxury" without compromising on everyday usability. What makes the Creta stand out is its balanced package. It is super versatile and runs smoothly across most terrains. 

Below ₹20 lakh, you can get even the turbo petrol DCT variant in some trims or the 1.5L diesel auto, which has great fuel efficiency and brilliant driving dynamics. But the real luxury lies within the cabin: dual-tone interiors, leatherette seats with a smooth feel (on mid-to-high trims), wireless charging pad, panoramic sunroof, and ambient lighting make the space a luxurious one.

The rear seat provides ample under-thigh support, and the individual AC vents have USB charging, making it very comfy for occupants. The ride quality leans slightly on the softer side, absorbing most of the urban bumps without fuss. If you're someone who wants a reliable, stylish SUV that doesn't try too hard but quietly delivers luxury and comfort, the Creta hits all the right notes.

Hyundai Creta Specifications

• Engine: 1.5L Petrol / 1.5L Diesel
• Transmission: 6-speed MT / CVT / 7-speed DCT
• Mileage: 15 – 19 kmpl
• Airbags: Up to 6 airbags
• Fuel Type: Petrol / Diesel
• Seating Capacity: 5
• Body Type: SUV

Hyundai Creta Key Features

• Wireless charging and ambient lighting-equipped panoramic sunroof
• Smooth CVT and DCT transmissions on the petrol and diesel variants
• Reassuringly cushioned rear seat with rear AC vents and charging ports
• Digital driver display and front-ventilated seats

5. Skoda Kushaq

Skoda Kushaq does not stand out by shouting luxury but by delivering it with subtlety and precision. The real luxury here is in driving and European-like build quality, which is extremely rare in the under ₹20 lakh segment. Skoda's 1.5L TSI engine with active cylinder technology provides excellent fuel efficiency in city driving by deactivating two cylinders when they are not required.

This tech isn't only rare in this class; it's also silky smooth in its application. Inside, the design is minimal yet plush and luxurious, centered around haptic feedback, all button presses, knob turns, and door closings are reassuringly solid. You even get ventilated front seats as standard, and the two-spoke steering wheel with knurled metal trim offers a very premium and luxurious feel.

Rear legroom isn't the biggest, but it's sufficient for urban families. What sets Kushaq apart is how well-designed it is and how good it is when it comes to driving dynamics. If you need a perfect balance of luxury and practicality under 20 lakhs, then the Kushaq is your car.

Skoda Kushaq Specifications

• Engine: 1.0L / 1.5L TSI Petrol
• Transmission: 6-speed MT / 7-speed DSG
• Mileage: 17 – 20 kmpl
• Airbags: Up to 6 airbags
• Fuel Type: Petrol
• Seating Capacity: 5
• Body Type: SUV

Skoda Kushaq Key Features

• 1.5L TSI engine with active cylinder deactivation for increased efficiency
• Two-spoke steering wheel with high-end knurled metal controls
• Hard Euro-style build with class-leading ride quality and handling
• Ventilated front seats and wireless Android Auto/Apple CarPlay

6. Hyundai Verna

Hyundai essentially remade the Verna in its new incarnation, and now it's no longer just a practical family sedan; it's a statement of luxury and performance. What makes it one of the most premium sedans below ₹20 lakh is the combination of aggressive design and segment-leading tech.

The 1.5L turbo petrol version is really quick, but even the naturally aspirated petrol is quite smooth in traffic. However, the crown jewel is the interior. You get ventilated and heated front seats, something that even most SUVs with more than double the price don't have. The split 10.25-inch display (on higher trims) provides a silky smooth infotainment experience, and the overall dashboard design provides a futuristic appearance with the wraparound theme and ambient lighting.

The rear seat, which was weak in previous Vernas, is wider, more reclined, and super spacious. Hyundai has even programmed the suspension for improved high-speed stability, so this sedan cruises nicely on highways. If you're fed up with SUVs and looking for something low, sleek, and generous enough, the Verna will shock you with just how good it is.

Hyundai Verna Specifications

• Engine: 1.5L NA Petrol / 1.5L Turbo Petrol
• Transmission: 6-speed MT / 7-speed DCT / IVT
• Mileage: 18 – 20 kmpl
• Airbags: 6 airbags
• Fuel Type: Petrol
• Seating Capacity: 5
• Body Type: Sedan
   

Hyundai Verna Key Features

• Heated and ventilated front seats 
• Dual-screen design with digital instrument panel and infotainment connectivity
• Mind-boggling acceleration with the turbo petrol variant
• Full-width LED DRL strip and cutting-edge dashboard layout

Bonus Option: Pre-Owned Hyundai Tucson

Even though the facelifted new-gen Tucson now costs more than ₹20 lakh, you can still find pre-facelifted used Hyundai Tucson models under ₹ 20 lakh. The Tucson is one of the most premium classic SUVs you can get your hands on at its price point. The interior, while less flashy than on newer models, is built with soft-touch panels, tastefully damped switches, and seats that are actually plush for highway cruising.

The 2.0L petrol engine isn't sporty, but it's very refined and has a super-smooth torque curve that is ideal for effortless city driving and highway cruising. However, what makes Tucson stand out is its calm and confident ride quality. It doesn't wobble around like other big SUVs with soft suspension setups. It doesn't make you feel jerky over potholes either; instead, it just feels planted and at ease.

Cabin insulation is particularly excellent, and you won't hear any engine growl unless you rev it. Even tyre and wind noises are well-damped. If you prefer luxury, peace, quiet, and refinement over flashy technology, the older-gen Tucson delivers that in spades.

Hyundai Tucson Specifications

• Engine: 2.0L Petrol/ 2.0 L Diesel
• Transmission: 6-speed AT/ 8-speed AT 
• Mileage: 13 – 16 kmpl
• Airbags: 6 airbags
• Fuel Type: Petrol
• Seating Capacity: 5
• Body Type: SUV

Hyundai Tucson Key Features

• Cabin isolation and NVH levels are at par with much more expensive luxury cars
• 2.0L petrol engine with silky-smooth torque delivery
• Dual-zone climate control and plush and luxurious seats
• Smooth, stable, and comfortable ride, which is ideal for highways

Summary

Whether it’s the rugged style of the Jeep Compass, the futuristic comfort of the XUV700, the plush experience of the Hyundai Tucson, or the well-rounded Creta, you’ve got plenty of choices. If you're more into space and tech, the MG Hector and Hector Plus give you both. Want a solid build and a refined drive? Go for the Kushaq. And if you're done with SUVs and want something elegant and fast, the Hyundai Verna Turbo is a sweet pick.

All in all, these cars prove you don’t need to spend ₹30-40 lakh to experience luxury. Plus, if you’re looking to hunt in the pre-owned market, you can also find cars from brands like Audi, Mercedes, and used BMW cars in India for under ₹20 lakh. But when buying second-hand, always inspect the car properly, take a test drive, check each electronic and other components, and if needed, opt for a pre-delivery inspection.