New Cars Under ₹7 Lakhs in India 2026
Most cars below ₹7 lakhs in India are hatchbacks or compact SUVs that are primarily suited for city driving. They are engineered around efficiency, low service costs, and ease of use, instead of being dominant on the highway or having a long list of features. You will not get sunroofs and other comfort features in this segment, as these cars are more about simplicity. In recent times, safety has improved, with ABS and airbags now standard across most models.
If you are targeting cars under ₹7 lakhs on road price, you need to be very careful with the variant selection. In many cities, registration, insurance and basic accessories can push even a ₹5.8 lakh ex-showroom car to hover around ₹7.2-7.4 lakhs on road. That is why buyers who are looking to buy a new car under ₹7 lakh need to select trims carefully if the budget is tight.
<p>The table below highlights the best Indian cars under ₹7 lakhs, keeping in mind safety, space and ownership comfort.</p><p> </p><figure class="table"><table><tbody><tr><td><strong>Car Model</strong></td><td><strong>Body Type</strong></td><td><strong>Key Strength</strong></td><td><strong>Approx. Ex-Showroom Price</strong></td></tr><tr><td>Tata Punch</td><td>Micro-SUV</td><td>5-star safety, ground clearance</td><td>₹5.49 lakh onwards</td></tr><tr><td>Maruti Swift</td><td>Hatchback</td><td>High mileage, easy driving</td><td>₹5.79 lakh onwards</td></tr><tr><td>Hyundai Exter</td><td>Micro-SUV</td><td>6 airbags standard</td><td>₹5.68 lakh onwards</td></tr><tr><td>Maruti Celerio</td><td>Hatchback</td><td>Best fuel efficiency</td><td>₹4.70 lakh onwards</td></tr><tr><td>Maruti Wagon R</td><td>Hatchback</td><td>Cabin space, comfort</td><td>₹4.99 lakh onwards</td></tr><tr><td>Tata Tiago</td><td>Hatchback</td><td>Build quality, safety</td><td>₹4.57 lakh onwards</td></tr><tr><td>Hyundai Grand i10 Nios</td><td>Hatchback</td><td>Ride comfort, refinement</td><td>₹5.47 lakh onwards</td></tr></tbody></table></figure>
<p>A few cars under ₹7 lakhs are clear winners when it comes to structural strength and crash test performance.</p><p> </p><p><strong>Tata Punch</strong></p><p><a href="https://www.cars24.com/new-cars/tata/punch/">Tata Punch</a> is known for a 5-star Global NCAP rating, solid build, 187 mm ground clearance and upright position. The trade-off comes in the form of average engine performance, and buyers should note that automatic variants easily go past the ₹7 lakh car on road price limit.</p><p> </p><p><strong>Tata Tiago</strong></p><p>The <a href="https://www.cars24.com/new-cars/tata/tiago/safety-rating/">Tiago’s 4-star Global NCAP rating</a> and planted ride quality make it feel more secure at highway speeds. Mileage is slightly lower than Maruti's counterparts, but durability and build quality make it one of the best cars under ₹7 lakhs for safety.</p>
<p>These cars below ₹7 lakhs are focused on keeping the running costs low.</p><p> </p><p><strong>Maruti Celerio</strong></p><p>With mileage figures of around 26 kmpl (petrol) and 34 km/kg (CNG), the <a href="https://www.cars24.com/new-cars/maruti-suzuki/celerio/">Celerio</a> continues to be the most fuel-efficient petrol choice among the cars under ₹7 lakhs. It is light, easy to drive and extremely economical for daily commuting. Interior quality is basic, which is the trade-off for its efficiency.</p><p> </p><p><strong>Maruti Swift </strong></p><p>The updated <a href="https://www.cars24.com/new-cars/maruti-suzuki/swift/">Swift</a> combines good mileage with better performance than most entry-level hatchbacks. The new Z-series engine has a refined and responsive feel and safety has improved with six airbags being the norm, but overall build solidity still trails Tata's offerings.</p>
<p>Comfort and cabin space are important for many family buyers who are looking at a new car under ₹7 lakh.</p><p> </p><p><strong>Maruti Wagon R</strong></p><p>The tall-boy articulation of the <a href="https://www.cars24.com/new-cars/maruti-suzuki/wagon-r/">Wagon R</a> results in good headroom and an airy cabin, making the Wagon R popular with small families and senior citizens. It is easy to drive, simple to maintain, and practical, even if it is not the most visually attractive car.</p><p> </p><p><strong>Hyundai Grand i10 Nios</strong></p><p>The <a href="https://www.cars24.com/new-cars/hyundai/grand-i10-nios/">Grand i10 Nios</a> is about ride comfort and cabin refinement. Rear AC vents, good insulation and a smooth suspension setup make it one of the most comfortable best Indian cars under ₹7 lakhs for daily use. Mileage is competitive, not class-leading, but overall comfort levels are good.</p>
<p>Some buyers focus on modern features while staying within cars under ₹7 lakhs on road price limits.</p><p> </p><p><strong>Hyundai Exter</strong></p><p>The <a href="https://www.cars24.com/new-cars/hyundai/exter/">Exter</a> comes with six airbags as standard in all its variants, a digital cabin and compact SUV styling. It is often among the best cars under ₹7 lakhs for urban users who want features and safety without moving into a higher segment. Rear-seat space and boot capacity are modest, which is something to consider.</p><p> </p><p><strong>Nissan Magnite</strong></p><p>The <a href="https://www.cars24.com/new-cars/nissan/magnite/">Magnite</a> is the fit for buyers who want features, appearance and attitude of a compact SUV at an aggressive price, making it the best car under ₹7 lakhs for overall value. While the interiors are average in quality and the engine is tuned more for economy than punch, it has a good road presence. </p>
<p>Here are the strengths and weaknesses to consider before finalising the best car in ₹7 lakh.</p><p> </p><p> </p><figure class="table"><table><tbody><tr><td><strong>Pros</strong></td><td><strong>Cons </strong></td></tr><tr><td>Affordable entry into car ownership</td><td>Limited engine performance</td></tr><tr><td>Low service and repair costs</td><td>Basic interior materials</td></tr><tr><td>Improved safety compared to older models</td><td>Automatic options are expensive</td></tr><tr><td>Easy city drivability</td><td>Not ideal for high-speed touring</td></tr><tr><td>Strong resale for popular brands</td><td>On-road price can exceed ₹7 lakh</td></tr></tbody></table></figure>
<p>The best car in ₹7 lakhs will not deliver the utmost excitement with features or indulgence. It will deliver when it comes to sensible mobility. These cars are designed to be easy to own, simple to drive and cheap to maintain. You may not be getting a sunroof, ventilated seats and big touchscreens, but you do get reliability, efficiency, and manageable ownership. If you prefer these features, then you may have to slightly stretch your budget further for better options.</p><p> </p><p>If you go into this budget with realistic expectations and good variant choice, a new car under ₹7 lakhs can work for you dependably for years. Focus on safety, mileage and service reach and accept the trade-offs. That is how the best Indian cars under ₹7 lakhs are silently making their name.</p>