Buying a new car in the budget segment remains popular in India. With rising fuel costs and city traffic, people look for reliable, fuel-efficient options under 7 lakhs ex-showroom. As of January 2026, several strong choices stand out in hatchbacks, micro-SUVs and compact cars. These models offer good space, safety and low running costs.
Here are the top 5 cars under 7 lakhs that buyers prefer in the current market.
1. Tata Punch
Tata Punch leads the list for many first-time buyers. It starts around ₹5.60 lakh ex-showroom and goes up to variants under ₹7 lakh. This micro-SUV gives high ground clearance, sturdy build and 5-star safety rating in adult protection. Mileage hovers around 18-20 kmpl. It suits bad roads in Mumbai and other cities well. Features like touchscreen, rear camera and connected tech come in mid variants.
2. Maruti Swift
Maruti Swift stays a favourite for its fun drive and strong resale value. Base models start at ₹5.79 lakh ex-showroom. Top trims under ₹7 lakh pack LED lights, cruise control and good infotainment. It delivers 22-25 kmpl mileage, best in class for petrol. Swift handles city traffic easily and feels premium inside. Many Mumbai buyers pick it for daily commute.
3. Renault Triber
Renault Triber offers the most space in this price range. Priced from ₹5.76 lakh ex-showroom, it seats seven with modular seats. Good for small families or joint outings. Mileage is decent at 18-20 kmpl. Features include keyless entry, cooled glovebox and easy third-row access. It stands tall with high roof and works well in crowded areas.
4. Maruti Wagon R
Maruti Wagon R remains popular for its tall-boy design and huge cabin space. It starts at ₹4.99 lakh ex-showroom. CNG option gives very low running costs. Mileage crosses 25 kmpl on petrol and even higher on CNG. Simple to drive and park in tight Mumbai streets. Many families choose it for reliability and low maintenance.
5. Tata Tiago
Tata Tiago combines safety and value. Base price around ₹5.50 lakh ex-showroom with top variants fitting under ₹7 lakh. It gets dual airbags standard, good build quality and 4-star safety rating. Mileage around 19-23 kmpl. Harrier-like design appeals to young buyers. Features include Harman audio and auto climate control in higher trims.
These cars cover different needs from SUVs to practical hatchbacks. Prices are ex-showroom and vary by city. In Mumbai, on-road cost adds RTO, insurance and handling charges, pushing it closer to ₹7-8 lakh for base models. Check local dealers for exact quotes.
Conclusion
If you have a budget of 7 lakhs, Tata Punch gives the best safety and SUV feel while Maruti Swift offers sharp handling and mileage. Renault Triber suits big families and Wagon R works for low-cost ownership. Tata Tiago balances features and build. Visit showrooms in Mumbai or check online portals like CarWale and CarDekho for latest offers. Pick based on your daily use, family size and fuel preference. The market has solid options right now.