Looking to purchase a solid, stylish, and packed car for less than Rs. 40 lakh? You’re certainly spoiled for choice, and that’s not a bad thing. According to research by the Society of Indian Automobile Manufacturers (SIAM), over 30% of all luxury cars sold in India in 2024 came within this range. If you want a car under 40 lakh that handles like a tank on wheels, a loaded EV to future-proof your journeys, or something with comfort and performance in equal proportions, there are plenty of options available.
In this blog, we’ve prepared a list of the best cars under 40 Lakh in India today. But we’re not here to give you brochure specifications. We’re going to give you the inside story, how it is to drive and show off these machines. From diesel behemoths like the Toyota Fortuner to intelligent EVS like the BYD Seal, we have it all on the menu.
List of Best Cars Under 40 Lakh
Here’s a detailed list of the best cars under 40 lakh in India, along with their engine types, mileage, and ex-showroom price range:
| Car | Engine Type | Mileage | Ex-Showroom Price |
| Toyota Fortuner | 2.8L Diesel | 14 kmpl | Rs. 33.78 – 51.94 Lakh |
| Tata Safari | 2.0L Diesel | 16.3 kmpl | Rs. 15.50 – 27.25 Lakh |
| MG Gloster | 2.0L Diesel | 10 kmpl | Rs. 39.56 – 44.74 Lakh |
| Jeep Compass | 2.0L Diesel | 15.3 kmpl | Rs. 18.99 – 32.41 Lakh |
| Volkswagen Tiguan | 2.0L Petrol TSI | 12.6 kmpl | Rs. 34.20 – 38.17 Lakh |
| Tata Harrier | 2.0L Diesel | 16.8 kmpl | Rs. 15.00 – 26.50 Lakh |
| BYD Seal | Dual-Motor Electric | 510 km (ARAI) | Rs. 41.00 – 53.00 Lakh |
| BYD e6 Max 7 | Electric | 420 -530 km (ARAI) | Rs. 26.90 – 29.90 Lakh |
| Citroen C5 Aircross | 2.0L Diesel | 17.5 kmpl | Starts from Rs. 39.99 Lakh |
1. Toyota Fortuner
The Fortuner is an SUV for those who want to be noticed, and more importantly, feel at home on the road. In FY24, the Toyota Fortuner sold 35,063 units. The reason the Fortuner has continued to be popular all these years is that it comes with a bulletproof 2.8L diesel and 2.7L petrol engine, and the capability to navigate Indian road conditions as if they were nothing. Its lofty driving position affords you an excellent view of the road, and its rear-wheel-drive (or available 4WD) configuration makes it capable of taking on anything from potholes to hill climbs.
It may not have the same elegance in ride quality and interiors as its similarly priced competitors, but the Fortuner’s go-anywhere confidence and back-to-basics toughness are its appeal, something most new-generation SUVs do not even attempt to offer. It’s particularly in favour of entrepreneurs, politicians, and regular highway users who do not care much for bells and whistles but crave reliability. It may be pricey. It may not be brand new. But it’s still the king of the jungle in its own tough, no-frills manner.
Toyota Fortuner Specifications
- Engine: 2.8L Diesel
- Transmission: 6-speed Manual/Automatic
- Mileage: 14 kmpl
- Airbags: 7
- Fuel Type: Diesel
- Seating Capacity: 7
- Body Type: SUV
Key Features of Toyota Fortuner
- 7 Airbags, ABS, VSC, and Hill Start Assist
- Powered Driver Seat and ventilated front seats
- Infotainment System with Apple CarPlay & Android Auto
- Drive Modes (Eco, Normal, Sport) for diesel variants
2. Tata Safari
The Safari has grown up from its rough, truck-like roots to a more urban-bred 7-seater with a pinch of adventure. Based on Land Rover’s D8 architecture-based OmegaArc platform, it provides an abnormally planted feel at high speeds, which is a first in this class. In FY2024, Tata Motors sold over 47,000 units of the Safari. However, its USP lies in the mix of comfort and charisma. The panoramic sunroof brings light and a feeling of breezy freedom into the cabin, and drive modes (Eco, City, Sport) enable you to customise based on terrain or mood.
The surprise is how Tata has designed a three-row SUV without making it too big to handle in the city. The second-row captain seat option introduces a sense of lounge-like luxury, particularly if you happen to be chauffeured a lot. But it’s still a diesel-only offering, and some might find the gearbox a bit lethargic in spirited driving. That said, as a family-first SUV that doesn’t scream “I’ve given up,” the Safari delivers. Lastly, the Tata Safari secured a 5-star safety rating from Bharat NCAP in 2024, making it one of the safest 3-row SUVs in India.
Tata Safari Specifications
- Engine: 2.0L Kryotec Diesel
- Transmission: 6-speed Manual/Automatic
- Mileage: 16.3 kmpl
- Airbags: Up to 6
- Fuel Type: Diesel
- Seating Capacity: 6/7
- Body Type: SUV
Key Features of Tata Safari
- Panoramic Sunroof and ventilated front & rear seats
- ADAS features including lane departure warning & forward collision alert
- 12.3-inch touchscreen infotainment system
- Digital Driver Display and premium JBL sound system
3. MG Gloster
The MG Gloster plays the “big SUV” game with a completely different rulebook. While other vehicles advertise off-road or toughness, the Gloster is sneakily attempting to provide you with the feel of a luxury premium SUV at a fraction of the cost. It is the only SUV in its segment to provide ADAS systems such as adaptive cruise control and auto emergency braking, features you would expect to see in cars costing twice as much. The twin-turbo diesel makes the Gloster feel incredibly agile around highways. The MG Gloster is the longest SUV in its segment, measuring over 4.9 metres, and offers true third-row usability.
On the inside, you get a lot of space and minimalism in design; the expansive front seats, quilted leather, and huge infotainment screen look more like a lounge than an SUV. It’s less imposing than the Fortuner, and off-roaders may find it less mechanically stimulating. But if you want a car under 40 lakh with a comfort-oriented application, suitable for highway driving, the occasional city drive, and a family road trip, the Gloster is the most underappreciated package for under Rs. 40 lakh.
MG Gloster Specifications
- Engine: 2.0L Twin Turbo Diesel
- Transmission: 8-speed Automatic
- Mileage: 10 kmpl
- Airbags: 6
- Fuel Type: Diesel
- Seating Capacity: 6/7
- Body Type: SUV
Key Features of MG Gloster
- Level 1 ADAS: Lane departure warning, front collision alert, auto emergency braking
- 12-way power adjustable driver seat with massage function
- 12.3-inch touchscreen with connected car tech
- 360-degree camera, adaptive cruise control
- Premium leather upholstery and ambient lighting
4. Jeep Compass
The Compass doesn’t go after size or bling; rather, it’s all about a solid build, properly balanced dynamics, and unmistakable Jeep DNA. The one thing that sets it apart from this group is how driver-focused it is. The steering is taut, the body control is exemplary, and the suspension is simultaneously sporty and compliant. Use the 4×4 diesels and you have a proper off-road device masquerading as a high-tech city SUV. The interior is small but extremely upscale with soft-touch plastic and a snappy infotainment system.
Rear-seat comfort is not its forte, but front-seat occupants are given a truly cocooned, upscale environment. It’s not for big families or showing off, it’s for the people who care about how a car handles, not what it looks like. All things considered, it may be pricey for the space it provides, and its after-sales support is still in the making. But for city dwellers or couples who like to spend weekends outdoors, the Compass checks the right boxes. The Jeep Compass is exported from India to over 20+ international markets, including Japan and Australia, making it one of the most globally trusted Made-in-India SUVs.
Jeep Compass Specifications
- Engine: 2.0L Diesel
- Transmission: 6-speed Manual/9-speed Automatic
- Mileage: 15.3 kmpl
- Airbags: 6
- Fuel Type: Diesel
- Seating Capacity: 5
- Body Type: SUV
Key Features of Jeep Compass
- UConnect 10.1-inch touchscreen with Android Auto & Apple CarPlay
- Panoramic sunroof, ventilated front seats
- 9-speaker Alpine sound system
- Dual-zone climate control with rear AC vents
- Selec-Terrain AWD system with Rock, Snow, Sand, Mud modes
5. Volkswagen Tiguan
With over 6 million units sold globally, the Tiguan is Volkswagen’s best-selling SUV ever. The Tiguan is what you’re left with when you want refinement without screaming for attention. This is the SUV for the person who appreciates order, symmetry, and understated sophistication. It shares the same MQB platform as the Skoda Kodiaq but in a smaller, 5-seater avatar, which works quite well for it.
It’s agile in city traffic, refined on highways, and the 2.0L TSI motor produces punchy performance with really respectable fuel efficiency for a turbo-petrol. It corners nearly like it’s a sedan, stops with confidence, and feels planted over all road conditions. The DSG transmission is crisp, although it’s slightly conservatively calibrated for city stop-and-go driving. On the inside, you get durable and solid build quality, and the interiors will easily last a decade or two. It’s not an SUV for those who want to impress the uncle down the street; it’s for those who quietly appreciate precision, engineering, and classic design. Think of it as a European architect rather than a Bollywood star.
Volkswagen Tiguan Specifications
- Engine: 2.0L TSI Petrol
- Transmission: 7-speed DSG Automatic
- Mileage: 12.6 kmpl
- Airbags: 6
- Fuel Type: Petrol
- Seating Capacity: 5
- Body Type: SUV
Key Features of Volkswagen Tiguan
- IQ.Light LED matrix headlamps with dynamic turn indicators
- 10-inch Digital Cockpit instrument cluster
- Touch-based 3-zone climate control
- Panoramic sunroof and Vienna leather seats
6. Tata Harrier
The Harrier takes cues from the Tata Safari in its DNA but asserts its individuality as a performance-oriented, fashion-conscious 5-seater SUV. It’s the type of car that makes you come back to it after parking, thanks to its wide-set stance, bulging shoulder line, and new LED lighting theme. Beneath the hood lies the same 2.0L Kryotec diesel engine as the Safari, but being lighter by some kilos to carry, it feels more responsive. With over 1 lakh units sold since its debut, the Harrier has become a common name in the list of best cars under 40 lakh.
What differentiates the Harrier is how assertively it handles swallowing potholes while being stable at triple-digit speeds. It’s also more city-friendly than the Safari due to its smaller turning radius and lighter rear. The 2023 facelift brought a much-needed tech boost, larger infotainment, a sleek digital cluster, and ADAS features that work well in Indian conditions. If you want a car under 40 lakh and you have a small family or someone who doesn’t need that third row but wants presence, power, and plushness, the Harrier is your sweet spot. Lastly, the 5-star Global NCAP safety rating makes it one of the safest SUVs in its class.
Tata Harrier Specifications
- Engine: 2.0L Kryotec Diesel
- Transmission: 6-speed Manual/Automatic
- Mileage: 16.8 kmpl
- Airbags: Up to 6
- Fuel Type: Diesel
- Seating Capacity: 5
- Body Type: SUV
Key Features of Tata Harrier
- ADAS Level 2 with adaptive cruise control, lane assist & emergency braking
- Panoramic sunroof and ambient mood lighting
- 12.3-inch touchscreen infotainment with wireless Android Auto & Apple CarPlay
- 10.25-inch digital instrument cluster
7. BYD Seal
The BYD Seal doesn’t compete, it disrupts. This fully electric sedan is the Tesla Model 3 alternative you never knew you needed under Rs. 40 lakh. With a claimed range of 510+ km and a 0-100 km/h time under 4 seconds in the AWD variant, it’s not just green, it’s fast, alluring, and astonishingly well-made. The body is coupe-like, razor-sharp, aerodynamic, and wind-swept – arguably the most show-stopping EV on Indian roads. Additionally, the BYD Seal has a 0–100 km/h time of just 3.8 seconds (for the AWD variant), making it the fastest in its segment under Rs. 40 lakh.
Inside, you get a cabin that combines minimalism with technology, featuring a rotary 15.6-inch screen and high-grade materials almost on par with European standards. What impressed us, though, was the ride quality; it’s rock-solid and planted, courtesy of the CTB (Cell to Body) platform. The Seal isn’t for the mass-market vehicle buyer; it’s for the performance or EV-driven driver seeking something in the future without compromising on performance. If you want a car under 40 lakh and are holding your breath for the EV revolution to finally be coming your way, then the Seal is your shout.
BYD Seal Specifications
- Engine: Dual Electric Motors
- Transmission: Single-speed Automatic
- Mileage: 510+ km (ARAI)
- Airbags: 7
- Fuel Type: Electric
- Seating Capacity: 5
- Body Type: Sedan
Key Features of BYD Seal
- 12.8-inch rotating touchscreen with Apple CarPlay & Android Auto
- Panoramic sunroof with anti-glare UV protection
- Nappa leather upholstery with ventilated & heated seats
- Augmented reality HUD & 15-speaker Dynaudio system
- V2L (Vehicle-to-Load) functionality for external device charging
8. BYD eMax 7
The BYD eMax 7 is a pure future car. Fruited from the mass-market e6 platform, this 7-seater MPV gets on with the job of electric driving without making a fuss. It may not possess the glamour of the Seal or the brash allure of SUVs, but the eMax 7 is about space, efficiency, and quiet confidence. With its real-world range of over 500 km and BYD Blade Battery technology, which ensures longevity and protection, it’s one of the most usable EVS of its class. The interior is huge with three proper rows of seating, no jump seats or compromises here. It’s perfect for fleet operators, cab premium services, or even larger families who don’t want to compromise on space while going electric. Yes, it does feel a little MPV-ish and is more interested in peaceful driving dynamics than thrills, but overall, it is a stress-free drive. If your daily needs are about moving people quietly and efficiently, this is an EV that over-delivers.
BYD eMax 7 Specifications
- Engine: Electric Motor
- Transmission: Single-speed Automatic
- Mileage: 420 -530 km (ARAI)
- Airbags: 4
- Fuel Type: Electric
- Seating Capacity: 7
- Body Type: MPV
9. Citroen C5 Aircross
The C5 Aircross was named the “Best Urban SUV” in the 2022 World Car Awards, and there is a reason why. It’s like that stylish French guy who doesn’t follow trends; he sets them. From its quirky design to its ultra-soft suspension setup, everything about this SUV screams different. And that’s a good thing. It’s probably the most comfortable 5-seater SUV you’ll find under Rs. 40 lakh, thanks to its Progressive Hydraulic Cushions that make every road feel freshly paved. It’s not sporty, not flashy, and certainly not attempting to be a Fortuner competitor.
What it is, however, is an easy cruiser for people who value comfort and peace above the mayhem. The 2.0L diesel is silky smooth and efficient, and the 8-speed automatic transmission feels natural. Down below, soft-touch dashboards, snug seats, and that laid-back French style. It won’t be winning drag races or turning heads at auto shows, but if your luxury is relaxed, stress-free driving with the occasional baguette and jazz soundtrack, the C5 Aircross is simply magnifique.
Citroen C5 Aircross Specifications
- Engine: 2.0L Diesel
- Transmission: 8-speed Automatic
- Mileage: 17.5 kmpl
- Airbags: 6
- Fuel Type: Diesel
- Seating Capacity: 5
- Body Type: SUV
Key Features of Citroen C5 Aircross
- Advanced Comfort seats with memory foam padding
- 12.3-inch digital instrument cluster
- 8-inch infotainment display with wireless Android Auto & Apple CarPlay
- Panoramic sunroof & hands-free tailgate
- Progressive Hydraulic Cushions for suspension comfort
Best Cars Under 40 Lakh Summary
The cars under 40 lakh budget in 2025 bring you some fantastic machines, and you no longer have to sacrifice performance or luxury; you can now have both. If road presence and reliability are your priorities, the Toyota Fortuner is a legend. Need a feature-packed, family-friendly 7-seater? Both the Tata Safari and the Harrier offer a balanced blend of design, technology, and comfort.
Need something more premium and luxurious? The MG Gloster offers a large SUV feel with a touch of luxury. The Jeep Compass is a rugged, compact vehicle perfect for city living and weekend adventures. If a European touch is your thing, the Volkswagen Tiguan provides a nice drive. If you’re looking forward, the BYD Seal and BYD e6 Max 7 are two electric vehicles that offer range, space, and style. Lastly, if quirky comfort is your thing, the Citroen C5 Aircross is a winner for its ride. This segment has something for all types of drivers.
FAQs about Best Cars under 40 Lakh
Q. Is the Fortuner worth under 40 lakhs?
Yes, if you need street cred, space, and toughness, the Fortuner is hard to beat. It’s expensive, but it retains its value like a champion.
Q. Can I get a luxury-feel SUV under Rs. 40 lakh?
Yes, options like the MG Gloster and Volkswagen Tiguan offer premium features that are best in class for the price range.
Q. Are any decent EVs priced below Rs. 40 lakh?
Two decent bangers: BYD Seal (awesome performance) and BYD e6 (actually practical). Both are very good choices to go electric.
Q. Harrier vs. Safari: what’s the similarity?
Both cars have the same engine and, same technology. If you need 7 seats and an elevated seating position, you can opt for the Safari. For a sportier 5-seater, take the Harrier.
Q. Which car under Rs. 40 lakh is the best for city and occasional mountain drives?
Jeep Compass is a rockstar for both driving modes. Harrier and Safari are also decent, as they come with different driving mode options.
