Cars under 40 Lakhs

Cars under 40 Lakhs

If you are on the hunt for an affordable car in India with a budget of under 40 lakhs, you are in for a pleasant surprise. India’s car market provides a diverse array of options, ensuring you can secure a dependable and stylish ride without straining your finances.  

Whether you prefer compact cars or midsize SUVs here is a plethora of choices that will not dent your bank account. Whether your priority is fuel efficiency, comfort, or performance, we have got you covered with our top recommendations. To simplify your search, we have curated a list of the finest cars available under 40 lakhs in India.

Top Luxury Sedans under Rs 40 Lakhs

Owning a luxury car is a dream of every automobile lover. Here, we have listed some of the top luxury sedans that one can buy under Rs 40 Lakhs. Let’s have a look at it;

Audi A3

Audi A3 is the entry-level car from German luxury car manufacturer Audi. This entry-level luxury sedan was introduced in India in the year 2013 and since then, it has caught a lot of eyes all over the country. The car gets a 1.4-litre TFSI petrol mill and 2.0-litre TDI diesel engine. The Audi A3 is priced at Rs 27.21 Lakh (Ex-showroom, Delhi) in the country.

Audi A4

Audi A4 is the second most affordable product in the portfolio of German luxury car maker Audi. The A4 sedan is slotted between the entry-level Audi A3 and the higher-level sedan Audi A6. The luxury car from Audi is offered with both diesel and petrol drivetrains. It competes with other luxury cars in the segment such as the Mercedes-Benz C-Class, BMW 3 Series, Jaguar XE, etc. It is priced at Rs 38.1 Lakh (Ex-showroom, Delhi).

Mid-size SUV Cars Under 40 Lakhs

Toyota Fortuner

The latest iteration of the Toyota Fortuner represents a robust and versatile SUV that seamlessly combines on-road comfort with off-road prowess. Boasting a distinctive, muscular design, it displays a striking front grille and LED headlamps that exude a sense of boldness.

Beneath its hood lies a formidable 2.8-liter diesel and 2.7-liter petrol engine, delivering exceptional performance and fuel efficiency.

The interior is generously spacious, adorned with premium materials and equipped with advanced features, including a touchscreen infotainment system, automatic climate control, and an array of safety features such as multiple airbags, ABS, and traction control.

With its remarkable off-road capabilities, the new Toyota Fortuner emerges as the ultimate choice for adventure enthusiasts and off-road aficionados, firmly establishing itself as one of India’s premier SUVs under the 40 lakh price bracket.

Jeep Compass

Jeep Compass price for the base model starts at Rs. 20.49 Lakh and the top model price goes upto Rs. 32.07 Lakh (Avg. ex-showroom). Jeep India introduced the updated Compass, including a new 4×2 diesel automatic option and the Black Shark Edition, with prices starting at Rs. 20.49 lakh (ex-showroom). The car pairs a 2.0-litre diesel engine with a nine-speed automatic transmission, producing 168bhp and 350Nm of torque, achieving an ARAI-claimed fuel efficiency of 16.2kmpl. The SUV can accelerate from zero to 100kmph in 9.8 seconds and is available in six variants and seven colour options. The Jeep Compass is the go-to choice for those seeking a more rugged, off-road-ready SUV.

Skoda Kodiaq

Prepare for an exceptional experience with the Skoda Kodiaq, an SUV brimming with features and thoughtfully priced. With an initial price tag of Rs. 37.99 Lakh, it provides three different variants to cater to your individual style. The top-of-the-line petrol model is available at Rs. 41.39 Lakh, while the automatic version starts at Rs. 37.99 Lakh. Under the hood, this powerhouse is equipped with a BS6 Phase 2 compliant 2.0-litre turbocharged petrol engine, delivering an impressive 188 bhp and 320 Nm of torque. Paired with a seven-speed DCT gearbox, it ensures a seamless and responsive driving experience. Moreover, it boasts a four-wheel-drive system, enabling you to conquer various terrains with ease.

Citroen C5 Aircross

Introducing the Citroen C5 Aircross – an elegant and pragmatic SUV that promises an enjoyable driving adventure. Priced from Rs. 37.17 lakh (ex-showroom), this vehicle is tailored to make a lasting impression. The C5 Aircross is available in a single variant and offers a diesel engine option. Beneath the hood, it houses a robust 1997 cc, 4-cylinder diesel engine, delivering an impressive performance with a peak power output of 174.33 bhp at 3750 rpm and a torque of 400 Nm at 2000 rpm. The automatic transmission ensures seamless and swift gearshifts, elevating your driving experience to a realm of enjoyment and effortlessness.

MG Hector

The MG Hector’s base model starts at an attractive price of Rs. 14.73 lakhs, while the top model reaches a maximum of Rs. 21.93 lakhs (on average, ex-showroom). This vehicle is an ideal choice for covering long distances comfortably, thanks to its smooth and comfortable ride quality, as well as its refined power plants.

Here are the key highlights of the MG Hector:

  • The Hector comes with enhanced features and advanced ADAS (Advanced Driver Assistance Systems) functions, making it even more appealing to buyers.
  • Its presence on the road is both bold and commanding, characterized by a massive and stylish grille adorned with a generous amount of chrome.
  • Inside the spacious cabin, you will find ample room for passengers, easy access, and a large glass area that provides exceptional visibility.
  • The drivetrains in the MG Hector deliver adequate power and come with refined gearboxes, resulting in a comfortable driving experience with low levels of noise, vibration, and harshness (NVH).

Electric Cars under 40 Lakhs

MG ZS EV: An Electric 5-Seater SUV

The MG ZS EV is a stylish electric 5-seater SUV available in India, with a price range spanning from Rs. 22.88 Lakh to 25.99 Lakh. This electric marvel can cover an impressive 461 kilometers on a full charge. Its engine boasts a robust 174.33 bhp of power and a torque of 280 Nm.

In terms of pricing and specifications, the ZS EV competes effectively with the BYD E6 and offers five distinct variants. It is also available in a range of four captivating colors to suit your personal style.

Hyundai Kona Electric: A Cutting-Edge 5-Seater SUV

The Hyundai Kona Electric is a remarkable 5-seater electric SUV available in India, priced between Rs. 23.84 Lakh and 24.03 Lakh. With a full charge, the Kona Electric can cover a substantial 452 kilometres. Its engine delivers a commendable 134.10 bhp of power and a formidable 395 Nm of torque.

BYD Atto 3

BYD Atto 3 is an electric 5 seater SUV car in a price range of Rs. 33.99 Lakh to 34.49 Lakh in India. Atto 3 goes 521km in a full charge. The engine of Atto 3 produces a power of 201.15bhp and 310nm of torque. The boot space of the Atto 3 is 440 litres while it’s ground clearance is 175 mm. There are two different variants of the Atto 3 and it comes in five different colours. In terms of pricing and specifications, the Kona Electric competes directly with the MG ZS EV and offers two distinct variants. Additionally, it is available in a captivating array of five different colors to cater to individual preferences.

Best Sports Cars under 40 Lakhs

Mitsubishi Outlander

The Mitsubishi Outlander is a substantial crossover that possesses the rugged characteristics of an SUV. It boasts durability, designed to withstand demanding conditions and handle rough terrain effectively. However, its introduction to the Indian market occurred relatively late in its life cycle, rendering it far from a novelty. Additionally, the available option is limited to a petrol-CVT model with all-wheel drive.

The new generation Mitsubishi Outlander has sportier looks and a lot better than the outgoing model. The SUV now gets a high bonnet along with a horizontal grille that offers it a sturdy and bold appearance. The alloy wheels along with the flared wheel arches further spice up the SUV character.

MG Gloster

The MG Gloster is equipped with a 2.0 Turbo diesel engine boasting a displacement of 1996cc. It operates on diesel fuel and delivers a maximum power output of 160.77bhp at 4000rpm. The engine generates a peak torque of 375 Nm in the range of 1500-2400rpm. This SUV features an automatic transmission with an 8-speed gearbox, offering seamless gear changes. In terms of fuel efficiency, the MG Gloster achieves a mileage of 14.5 kmpl.

With a seating capacity for seven individuals, this vehicle is well suited for larger groups. It comes with a substantial fuel tank capacity of 75 litres, ensuring fewer refuelling stops during long journeys. The MG Gloster is equipped with rear ducts for air conditioning, providing comfort to passengers in the back seats. Additionally, it features power windows for both the front and rear sections.

Safety is a priority, with driver, passenger, and side-front airbags included in its design. For those seeking budget-friendly options, the MG Gloster offers two variants under INR 40 lakhs: the Super 7Str at INR 30.99 lakhs and the Smart 6-Str at INR 33.99 lakhs.

Bottom Line

In the Indian car market, there is a plethora of options available for buyers with a budget of 40 lakhs. The cars mentioned above represent a diverse range of choices, from compact SUVs to sedans, with various features and engines to cater to different preferences. Ultimately, the best car for you will depend on your specific needs, whether it’s space, style, performance, or technology. Be sure to test drive your shortlisted options to find the one that resonates with you the most.

It is important to note that the cost of car insurance can vary based on factors such as the car’s make and model, your location, driving history, and the coverage options you choose. Here are some common types of car insurance policies you can consider:

Third-Party Liability Insurance: This is the minimum legal requirement in India and covers you against third-party injuries, death, or property damage caused by your vehicle. It does not cover damage to your own vehicle.

Comprehensive Insurance: This more extensive coverage option includes third-party liability coverage as well as coverage for damage to your own vehicle due to accidents, theft, fire, natural disasters, and more.

Zero Depreciation Insurance: Also known as Nil Depreciation or Bumper-to-Bumper insurance, this policy covers the full cost of repairs or replacement parts without factoring in depreciation. It’s especially beneficial for new cars.

Personal Accident Cover: This coverage provides compensation in case of accidental death or disability of the owner/driver.

Engine Protection Cover: This covers the cost of repair or replacement of the engine and its parts in case of damage due to water ingression, oil leakage, etc.

Roadside Assistance: This add-on provides assistance in case of breakdowns, flat tires, fuel delivery, and towing services.

No Claim Bonus (NCB) Protection: This add-on preserves your accumulated NCB even if you make a claim, helping you avail discounts on premiums in the future.

Return to Invoice (RTI) Cover: This coverage bridges the gap between the insurance claim amount and the original invoice value of the car in case of total loss or theft.


What are the best cars available under 40 lakhs in India?

Some of the popular cars in this price range include the Hyundai Creta, Kia Seltos, Tata Harrier, MG Hector, Mahindra XUV500, Jeep Compass, Skoda Octavia, and Honda Civic, among others.

Which car under 40 lakhs offers the most advanced safety features?

Several cars in this price range come with advanced safety features, including multiple airbags, ABS, traction control, and advanced driver assistance systems (ADAS). Models like the Tata Harrier, MG Hector, and Jeep Compass are known for their safety features.

Are there electric or hybrid cars available under 40 lakhs?

While fully electric cars may be less common in this price range, hybrid models like the Toyota Camry Hybrid and certain plug-in hybrids are available for those interested in more eco-friendly options.

What is the average maintenance cost for cars under 40 lakhs?

Maintenance costs can vary by make and model. It’s advisable to research and compare the maintenance costs for the specific car you’re interested in, considering factors like service intervals, spare parts availability, and labor charges.

Can I find a seven-seater car under 40 lakhs?

Yes, there are seven-seater cars available in this price range, including the Mahindra XUV500, Tata Safari, and some variants of the MG Hector..

What is the average fuel efficiency of cars under 40 lakhs?

Fuel efficiency varies depending on the car’s make and model. Many cars in this range offer a fuel efficiency ranging from 12 kmpl to 18 kmpl, with diesel and hybrid models generally offering better mileage.

Can I find a seven-seater car under 40 lakhs?

Yes, there are seven-seater cars available in this price range, including the Mahindra XUV500, Tata Safari, and some variants of the MG Hector.

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