Buying your first car this Diwali? 5 budget cars starting at just ₹3.50 lakh, with mileage up to 34 km/kg

Buying your first car this Diwali? 5 budget cars starting at just ₹3.50 lakh, with mileage up to 34 km/kg

Buying your first car this Diwali? Explore budget cars starting at ₹3.50 lakh from Maruti, Tata and Renault, with claimed mileage up to 34 km/kg, prices, features and more.

Business Today Desk
  • Oct 20, 2026,
  • Updated Oct 20, 2026 6:30 AM IST
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  • 1/5

Diwali bargain

Planning to buy your first car this Diwali without stretching your budget? The Indian market has several small cars priced between ₹3.50 lakh and ₹5 lakh. From Maruti Suzuki to Renault and Tata, these options offer different combinations of mileage, engine power and affordability.

  • 2/5

Mileage monster

The Maruti Wagon R stands out with a claimed CNG mileage of 34 km/kg, while its petrol version delivers 24 km/litre, according to the supplied figures. Starting at ₹4.99 lakh, it offers two engine options, making it worth considering for buyers worried about rising running costs.

  • 3/5

Alto advantage

At ₹3.70 lakh, the Maruti Alto K10 remains one of the most affordable options on this list. Its 1.0-litre engine produces 65 bhp, while the CNG version delivers a claimed 33 km/kg. For first-time buyers watching every rupee, the Alto presents an interesting proposition.

  • 4/5

Budget battle

The Maruti S-Presso starts at ₹3.50 lakh, making it the cheapest car on this list. But the ₹4.70 lakh Celerio offers a claimed 34 km/kg on CNG, compared with the S-Presso's 32 km/kg. The real decision may come down to whether you value a lower purchase price or better fuel economy.

  • 5/5

Hidden contenders

Maruti isn't the only brand competing for budget-conscious buyers. The Renault Kwid starts at ₹4.53 lakh and offers a 1.0-litre engine producing 67.06 bhp, with a claimed automatic mileage of 20 km/litre. Meanwhile, the Tata Tiago starts at ₹4.77 lakh and offers petrol and CNG options, making the choice more interesting.

Prices and mileage figures are taken from the supplied images.

 

Prices may vary by variant, location and applicable offers. Mileage figures are claimed, not independently tested.

 

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