India’s appetite for premium automobiles is evolving fast. Driven by younger, ambitious consumers in metropolitan and Tier 1 areas, some studies indicate that the luxury car market is growing by over 6% year-over-year, and the entry-level market is even ahead of that. The surprising fact is, you can now experience luxury without a Rs. 50 lakh budget. Blurring the distinctions between mass and luxury, an increasing number of vehicles priced under Rs. 20 lakh now feature excellent interiors, tech-loaded cabins, a soft ride quality, and a premium brand value.
Whether you want that executive SUV posture, sedan-grade refinement, or just something chic but functional, we’ve got you covered. In this blog, we’ve prepared a list of the best luxury cars under 20 lakh in India.
Check out the luxury cars under 20 lakh in India.
Table of Contents: Luxury Cars under 20 Lakh in India
List of Luxury Cars under Rs. 20 Lakh
Here is a detailed list of the top cars that offer ample luxury features under Rs. 20 lakh price point:
| Car | Engine | Mileage | Ex-Showroom Price |
| Jeep Compass | 2.0L Diesel / 1.4L Petrol | 17-20 kmpl | Rs.18.99 – 32.41 Lakh |
| Mahindra XUV700 | 2.0L Turbo Petrol / Diesel | 15-20 kmpl | Rs.13.99 – 25.74 Lakh |
| Hyundai Tucson | 2.0L Petrol / Diesel | 15-18 kmpl | Rs. 18.77 – 26.97 Lakh* |
| MG Hector | 1.5L & 2.0L Turbo Petrol / Diesel | 13-17 kmpl | Rs.14.00 – 23.67 Lakh |
| Hyundai Creta | 1.5L Petrol / Diesel | 17-21 kmpl | Rs.11.11 – 20.50 Lakh |
| Skoda Kushaq | 1.0L / 1.5L TSI Petrol | 17-19 kmpl | Rs.10.99 – 19.01 Lakh |
| Honda Verna | 1.5L NA / Turbo Petrol | 18-20 kmpl | Rs.11.07 – 17.55 Lakh |
1. Jeep Compass
The Jeep Compass has been India’s most affordable entry point into the luxury SUV world for years. Yes, the base variant now stretches up to Rs. 20 Lakh, but it still checks all the boxes for luxury ambience on a tight budget for consumers. The reason it succeeds is that it carries a special American SUV heritage. It’s as rugged as a tank and feels reassuringly sturdy on Indian roads. Squared-off wheel arches, rugged shape, and minimalist but premium-quality interiors tap into that unique Jeep DNA.
On the inside, even the base Sport variant greets you with an uncluttered, well-organized cabin, soft-touch materials, and a class-leading build quality. The 2.0L Multijet diesel (170 hp) is a Familiar Fiat workhorse, torquey, silky, and a tried-and-tested thoroughbred, particularly for cruisers on highways. The Compass also rides far more solidly on highways and rough roads than its competitors, thanks to its better chassis dynamics and suspension settings. Even though the base model’s features and infotainment system are less exciting, the basics are still there: two airbags, a large screen, premium speakers, and the essential comfort features.
For young professionals or small households looking for a luxury experience without breaking the bank, the Compass provides an unassuming charm. You don’t buy a Jeep for tricks, you purchase it because it drives a class above.
Jeep Compass Specifications
- Engine: 2.0L Diesel / 1.4L Turbo Petrol
- Transmission: 6-speed MT / 7-speed DCT / 9-speed AT
- Mileage: 17-20 kmpl
- Airbags: Up to 6
- Fuel Type: Petrol, Diesel
- Seating Capacity: 5
- Body Type: SUV
Jeep Compass Key Features
- Solid European build quality and a confident road presence
- Luxury interiors with leather upholstery and a commanding driving position
- Advanced touchscreen infotainment with connected car technology
- Great high-speed stability and ride comfort, particularly on highways
2. Mahindra XUV700
The Mahindra XUV700 is priced competitively below Rs. 20 lakh for various variants and boasts a jaw-dropping blend of high-tech features, roominess, performance, and road presence. Mahindra’s design department has got the proportions just right, it’s contemporary without being radical, and the LED lighting signature is the icing on the cake without going overboard.
However, the best part is the interior. Step inside and you’re welcomed by twin 10.25-inch displays that match luxury sedans costing twice as much. Even the entry-level MX and lower AX trims provide a welcoming cabin design with excellent fit and finish. In terms of power, the XUV700 is available with a punchy 2.0L turbocharged petrol engine or a thumping 2.2L diesel engine, both providing class-leading refinement and performance. The suspension is more comfort-oriented, and it soaks up poor patches and potholes with ease.
It even comes with ADAS (Advanced Driver Assistance Systems) on certain trim levels, lane-keep assist, adaptive cruise control, and automatic emergency braking. For a luxury car under 20 lakh, that’s a big thumbs up. Even though the third row on the 7-seater version is only suitable for children, the overall cabin experience is premium and trendy.
Mahindra XUV700 Specifications
- Engine: 2.0L Turbo Petrol / 2.2L Diesel
- Transmission: 6-speed MT / 6-speed AT
- Mileage: 15-20 kmpl
- Airbags: Up to 7
- Fuel Type: Petrol, Diesel
- Seating Capacity: 5 / 7
- Body Type: SUV
Mahindra XUV700 Key Features
- Segment-leading ADAS features such as adaptive cruise and lane-keep assist
- Panoramic sky roof and twin-screen cockpit design for a futuristic look
- Powerful turbo-petrol and diesel engines with AWD as a variant
- Best-in-class safety with a 5-star Global NCAP rating
3. Hyundai Tucson
Although the new Tucson has moved into a higher-end realm, the previous-gen model continues to be available in some dealer stocks or pre-owned certified editions, well within Rs. 20 Lakhs. And believe us, this is a pearl kept under wraps. The previous-gen Tucson didn’t shout luxury, it whispered it. Its understated looks, broad stance, and signature cascading grille make it an elite vehicle.
Inside, Tucson’s cabin is where Hyundai made a complete European move. The styling is light, driver-centred, and full of high-quality upscale materials. Ventilated seats, a panoramic sunroof (on higher trims), and leather seats make it feel even more upmarket than its price. But most importantly, it rides like a dream. With its multi-link rear suspension and fine-tuned steering, the Tucson is very stable on the highway and smooth amidst city traffic.
The 2.0L diesel engine with the 8-speed auto gearbox is smooth as butter, quick to respond, and designed for long-distance travel. It’s quiet too. Even without the new-fangled connected technology of newer Hyundai vehicles, the older Tucson impressed with what truly matters in a luxury vehicle: refinement, elegance, and build quality.
Hyundai Tucson Specifications
- Engine: 2.0L Petrol / 2.0L Diesel
- Transmission: 6-speed AT / 8-speed AT
- Mileage: 15-18 kmpl
- Airbags: Up to 6
- Fuel Type: Petrol, Diesel
- Seating Capacity: 5
- Body Type: SUV
Hyundai Tucson Key Features
- Innovative, distinctive styling with ‘Parametric Jewel’ front grille and LED DRLs
- Well-knit, high-end interior with soft-touch finish and mood lamps
- Level 2 ADAS suite of radar-based safety features
- Sleek, silky-smooth, and responsive 2.0L petrol and diesel engine choices
4. MG Hector / Hector Plus
MG Hector is where size and swagger meet. For buyers who equate luxury with road presence and an elevated, lounge-like experience, the Hector is a complete charmer. The chrome-plated grille, huge size, and squared-off dimensions give it the “look at me” charm, one of the reasons it scores big on the wish list of buyers seeking bang for their buck.
Step inside, and it’s like stepping into a tech-savvy, SUV-shaped living room. The vertically aligned 14-inch touchscreen, ambient lighting, leather-wrapped trim, and plush seating feel more like a limousine than a utilitarian vehicle. The Hector Plus adds a third row for those who require extra seating, but the real luxury lies in the middle row – comfort-cushioned, airy, and spacious.
Powertrain choices include a 1.5L turbocharged petrol engine and a 2.0L Fiat-sourced diesel engine. Both engines are smooth, and while they’re not exactly sporty, they’re ideal for cruising smoothly. Ride quality is more tailored towards comfort; it floats over potholes, and the cabin is relaxed and comfortable even on horrible roads.
However, the area where Hector truly excels is in luxury; it gets you used to owning something much more valuable than what you’ve invested. Very few luxury car under 20 lakh offer this kind of presence and generosity.
MG Hector Specifications
- Engine: 1.5L Turbo Petrol / 2.0L Diesel
- Transmission: 6-speed MT / CVT / DCT
- Mileage: 13-17 kmpl
- Airbags: Up to 6
- Fuel Type: Petrol, Diesel
- Seating Capacity: 5 / 6 / 7
- Body Type: SUV
MG Hector/Hector Plus Key Features
- Large 14-inch voice-activated touchscreen infotainment system
- Generous interiors with spacious seating and panoramic sunroof
- Advanced and highly refined petrol and diesel engines
- Coming in 5, 6, and 7-seater variants (Hector Plus)
5. Hyundai Creta
The Hyundai Creta is an SUV that boasts its success loudly, but never in an arrogant manner. For most Indian buyers, the Hyundai Creta is their first premium driving experience, and Hyundai ensures it is so. Even in its mid-spec versions, which conveniently fall within the Rs. 20 lakh price band, the Creta delivers a mature driving experience, roomy interiors, and a list of features that outshine cars in a class higher.
What actually characterises the luxury of the Creta is balance. It doesn’t do too much of anything; it just does everything to perfection. It looks modern, with double DRLs and a wide track. Inside, there are sleek lines, tactile switches, and refined plastics. Dual-tone interiors, leatherette upholstery, a panoramic sunroof, and a well-polished touchscreen system give it a mature personality. Even rear comfort is class-leading, with ample legroom, a relaxed recline angle, and rear air conditioning outlets making it a safe bet for chauffeur-driven comfort.
Performance-wise, the 1.5L diesel and petrol are not neck-snapping but quiet, smooth, and very economical. The CVT petrol variant, especially, gives a smooth and relaxed drive, perfect for daily city runs. The ride quality is plush, the suspension absorbs potholes effortlessly, and the light steering makes it easy to navigate tight parking lots.
Hyundai Creta Specifications
- Engine: 1.5L Petrol / 1.5L Diesel
- Transmission: 6-speed MT / IVT / DCT
- Mileage: 17-21 kmpl
- Airbags: Up to 6
- Fuel Type: Petrol, Diesel
- Seating Capacity: 5
- Body Type: SUV
Hyundai Creta Key Features
- Well-balanced ride quality with light steering, just right for urban driving
- Luxurious cabin feel with ventilated seats and panoramic sunroof
- Smooth CVT and refined 1.5L engine variants
- Ample features in mid-variants themselves
6. Skoda Kushaq
The Skoda Kushaq is the driver’s delight wrapped in a premium shell. It doesn’t boast luxury in the classical sense, no huge screens and ridiculously soft suspension here. Rather, the Kushaq rejoices in European driving culture: strong build, punchy performance, and a stable, driver-centric cabin. And that’s precisely what makes it unique.
For a luxury car under 20 lakh, you find yourself with a car that feels as if it was built for autobahns. Both the 1.0L and 1.5L TSI petrol engines are turbocharged and offer a balance of enthusiasm, refinement, and economy. The 1.5L engine, especially with cylinder deactivation tech, manages an extremely fine balance of economy and performance. Whether navigating urban traffic or rolling down highways, the Kushaq is solid and responsive.
On the inside, the build quality and ergonomics are top-notch. Everything you touch has a tactile quality to it, and while it isn’t overly flashy, the cabin is clever and functionally luxurious. There’s plenty of room for front seats, and rear seats provide just enough comfort for highway cruising. Ventilated front seats, wireless Android Auto and Apple CarPlay, and a decent-sounding audio system keep the tech side up to par as well.
Skoda Kushaq Specifications
- Engine: 1.0L / 1.5L TSI Petrol
- Transmission: 6-speed MT / 6-speed AT / 7-speed DSG
- Mileage: 17-19 kmpl
- Airbags: Up to 6
- Fuel Type: Petrol
- Seating Capacity: 5
- Body Type: SUV
Skoda Kushaq Key Features
- Peppy 1.0L and 1.5L TSI turbo petrol engines with razor-sharp handling
- Smart, uncluttered cabin design with great ergonomics
- Great highway composure and steering response
- Superb build quality with a rock-solid European car feel
7. Hyundai Verna
The new-gen Hyundai Verna has totally revamped itself, giving up its conservative executive sedan appearance in favour of something much more aggressive and premium. With its fastback-like design, sharply creased appearance, and an LED light bar that spans the back, the Verna now resembles an entry-level sports sedan more than a family car. And here’s the best part: it stands out as one of the top choices as a luxury car under 20 lakh.
The cabin is faithful to that exterior brashness. Hyundai has taken the full-tilt approach with a stacked dashboard, touch-screen climate controls, ventilated seats, and an all-digital instrument panel. Even mid-range versions feel rich and forward-looking, and interior space is genuinely spacious, particularly at the rear. The Verna’s spacious cabin and rear seats make it as pleasant to be driven as to drive.
Performance is where the fun begins. The 1.5L NA petrol engine is smooth and refined, making it perfect for in-city driving. But for anyone who wants a little more theatrics, the 1.5L turbo-petrol with a 6-speed manual or 7-speed DCT is a blast. It’s quick, agile, and remarkably fuel-efficient, considering the performance it offers.
Though it’s a sedan in an SUV-led world, the Verna keeps pace with its elegant poise, cutting-edge design, and gadget-friendly cabin. It’s a vehicle for those who want the excitement of classic sedans without sacrificing the luxury of today. If style, comfort, and speed are your holy trinity, the Verna delivers all three without burning a hole in your wallet.
Hyundai Verna Specifications
- Engine: 1.5L NA Petrol / 1.5L Turbo Petrol
- Transmission: 6-speed MT / CVT / 7-speed DCT
- Mileage: 18-20 kmpl
- Airbags: Up to 6
- Fuel Type: Petrol
- Seating Capacity: 5
- Body Type: Sedan
Hyundai Verna Key Features
- Bold, coupe-like looks with full-width LED lighting
- Turbo-petrol engine delivers sporty performance with DCT
- Spacey, tech-filled interior with ventilated seats and digital displays
- Class-leading boot space and backseat comfort
Luxury Cars under 20 Lakh: Summary
When it comes to luxury on a budget, India’s automotive scene is delivering. From rugged off-roaders like the Jeep Compass, high-tech warriors like the XUV700, to urban icons like the Creta and Verna, you’re spoilt for choice when it comes to a luxury car under 20 lakh. The thing is, “luxury” is a personal thing. To one individual, it’s build quality. For another, it’s the technology, interior space, or how the car makes them feel. This is why this list mixes and matches different styles and personalities so that you can pick the one that best suits your definition of luxury. However, always test-drive a vehicle before buying it. Because, regardless of what’s on paper, it’s how the car makes you feel that’s ultimately crucial.
FAQs
What is the most premium SUV luxury car under 20 lakh?
If you’re after Features + looks? Choose the XUV700. If you’re looking for a smooth drive and comfort? Compass or Kushaq are good options. Lastly, if you’re after comfort and room? MG Hector wins.
Sedan or SUV – which one feels more luxurious?
Sedans like the Hyundai Verna are sporty and comfy. SUVs like Creta or XUV700 feel bigger and more commanding. Both serve luxury in different ways.
Is diesel better for a luxury car experience?
Not necessarily. Diesel is great for torque and mileage. But modern petrol engines, especially turbo ones, offer zippy performance and are quieter. Pick what suits your driving style.
Are features like a sunroof and ventilated seats worth the extra cost?
Yes. Once you get used to them, there’s no going back. These features give the actual essence of luxury and enhance the driving and riding experience, especially in Indian weather.
Which car offers the best value for under Rs. 20 lakh?
If you want the most features for your money, the XUV700 or the MG Hector are your best bets. These vehicles are designed for Indian roads and come with some of the best advanced features for the price point.
