Top 5 Cars to Buy Under ₹20 Lakhs? Here Are India’s Top 5 Picks!
Thinking of buying a new car but feeling overwhelmed by the sheer number of options under ₹20 lakhs? Don’t sweat it! We’ve put together a list of the top 5 best cars in India you should consider today. This list is tailored to help you choose based on what you’re looking for, be it a rugged SUV or a comfortable sedan.
1. Mahindra Thar RX: For the Adventure Seeker!
The Mahindra Thar RX has been a total game-changer in the Indian auto market. Ever since its launch, people have been smitten by it. Honestly, when this car was about to arrive, I expected its top-end model to cost around ₹28-30 lakhs. But Mahindra completely surprised us!
The Thar’s top-end 4×2 model comes at a price similar to cars like the Creta, Seltos, and Kushaq, but with a much larger engine. You get a 2-litre turbo petrol and a 2.2-litre diesel engine, along with a 4×4 option, available in both manual and automatic transmissions. This clearly makes it a winner in its segment.
When it comes to features, it offers almost everything you’d want in a complete package: a 360-degree camera, panoramic sunroof, ventilated seats, and ADAS. If you’re leaning towards more performance, a fun-to-drive SUV, high seating, and 4×4 capability, then the Thar RX should be your top choice. Within the ₹20 lakh budget, you’ll easily find its mid-level variants, which offer fantastic value for money.
2. Hyundai Creta: A Perfect Blend of Status and Convenience!
The Hyundai Creta is one of the best-selling and most reliable SUVs in the Indian market. While its top-end model might slightly exceed your ₹20 lakh budget (the top-line petrol manual is approximately ₹21 lakh on-road in Mumbai), even its mid-level specs are fantastic.
The Creta offers a great combination of power, features, and comfort. It boasts the best resale value, low maintenance costs, and a very appealing design. If you’re looking for a car that looks premium and upscale, you must consider the Creta. It consistently leads the SUV segment above ₹10 lakh, and its brand value makes it an excellent choice.
You get both petrol and diesel engine options (the turbo petrol is above ₹20 lakh). Its IVT (automatic) transmission is generally more fuel-efficient than a regular manual, giving you convenience along with good mileage. I’ve personally driven over 450 km with this engine and transmission in the UAE, and it was incredibly comfortable and easy to drive, even at speeds of 130-140 km/h on highways, despite being a non-turbo petrol. It’s a lovely product, even if the mileage is slightly lower in comparison.
4. Hyundai Verna: Feature-Rich and Safe Sedan!
If you’re in the market for a sedan, the Skoda Slavia is one of the best around. Its biggest advantage is its superb ride quality. It handles bad roads well, and its ground clearance is quite good too. It’s comfortable, spacious, powerful, and what more could you ask for?
Skoda’s overall maintenance costs have significantly reduced today. The Slavia is a perfect package, loaded with features and technology. While a few things like ADAS and the reverse parking camera quality aren’t top-notch, almost all key features like ventilated seats and electric seat adjustment are present.
You might even find discounts on some Skoda models, making it even more appealing. You could opt for the 1.5-litre turbo petrol if your budget allows, but in my opinion, the 1-litre turbo petrol should be more than sufficient for daily use, both in manual and automatic. It delivers excellent performance even at high speeds of 120-130 km/h. You can also get a 4 to 6-year service pack, which means you’ll be completely free from maintenance cost worries. Overall, the Skoda Slavia is one of the best choices to consider right now.
4. Hyundai Verna: Feature-Rich and Safe Sedan!
If you’re sticking to the idea of a sedan, the Hyundai Verna is another fantastic choice. This car is spacious, comfortable, and packed with features. It comes with both 1.5-litre non-turbo and turbo engine options, making it a perfect fit for you.
Most importantly, the Verna has received a full 5-star rating in Global NCAP, just like the Skoda Slavia. This makes it a very reliable and safe car. While its ground clearance is a bit lower, overall, it’s a very well-packaged car. Design is a matter of personal taste, but from a value perspective, the Verna is a fantastic car.
5. Mahindra XUV700: Big, Premium, and Family-Friendly!
The Mahindra XUV700 is currently the best-selling car in its category. Compare it to the Safari, Innova, or Hector – whatever the price point, its sales figures are significantly higher than everybody else’s in that segment. People truly love this car.
If you’re looking for a big engine but prefer a slightly more family-oriented and premium look in a big car, then the XUV700 is the perfect choice for you. Its comfort surpasses all the other four cars I’ve mentioned because it’s larger and more spacious. It also has a big boot space.
When you buy a ₹20 lakh car, many people will perceive it as a ₹30 lakh vehicle, as its top-end goes close to ₹27-29 lakh. This gives you the feeling of being a very expensive car owner, which you might not get with the other three or four cars. It’s available with both 2-litre turbo petrol and 2.2-litre diesel engines, in manual and automatic. While you won’t get all variants within ₹20 lakhs, some will certainly be available. The AX5 variant, for instance, offers two large connected screens and a panoramic sunroof, making it an excellent package within itself under ₹20 lakhs.
Also Read: Skoda Kylaq vs Mahindra XUV 3XO: Which Compact SUV Offers Better Value in 2025?
In summary, these five cars excel on various parameters, whereas many other good cars tend to fall short somewhere in most cases.