Affordable SUVs for Indian Middle-Class Families: 5 Options Under 20 Lakh Rupees
Are you planning to buy a car? In that case, you should consider purchasing an SUV if your family has more than four members. However, for middle-class families with a yearly income of no more than 10 lakh, affording an SUV can be difficult.
Many middle-class families are realising their dream of owning an SUV thanks to a few automobile brands and their easy loan/EMI facilities.
Below I have listed seven affordable, fuel-efficient SUVs that can accommodate seven passengers. These SUVs are perfect for larger families or groups seeking comfortable transportation at an affordable price.
5 Affordable SUVs for Indian Middle-Class Families
1. Mahindra N Z4
Mahindra N Z4 has both diesel and petrol variants with automatic transmission. Its 2.0-litre turbo-petrol engine generates 200 hp and 370 Nm of torque with the manual transmission and 380 Nm with the automatic. The diesel engine produces 172 hp and 370 Nm of torque with the manual and 400 Nm with the automatic.
The diesel variant costs ₹ 17.86 lakhs, and the petrol variant costs ₹ 17.39 lakhs (ex-showroom price).
The mileage for the Mahindra Scorpio N Z4 petrol variant is 12.12 kmpl to 12.17 kmpl. The diesel variant has a mileage range of 15.42 to 15.94 kmpl.
2. Tata Safari Smart & Pure Plus AT
Tata is a well-known Indian automobile brand that offers a premium line of SUVs called Safari. However, it only provides two low-end variants priced under 20 lakh rupees.
The first among them is Safari Smart, which comes with a manual transmission at a price of ₹ 15,49,990. The Safari Pure Plus AT has a 6-speed torque converter automatic transmission system, which costs ₹ 19,84,990. Both the variants are powered by a 2-litre diesel engine that produces 167.62 to 170 bhp and 350 Nm of torque.
The ARAI mileage test for both cars shows a range of 14–16 kmpl.
3. MG Hector Plus
The well-known international MG automobile brand also offers options within a budget of 20 lakh. If you are looking for a premium 7-seater SUV, then you should definitely go for the MG Hector Plus Style 7 STR and Style 2.0 6 STR.
These SUVs are priced at ₹ 17.5 lakh (ex-showroom).
Both have the same make of engine. They are powered by a 1956 cc diesel engine (4 cylinders) that produces 168 bhp and 350 Nm of torque. The brand offers only manual transmission of those diesel variants. Automatic transmission is reserved for high-end diesel variants. The ARAI mileage test shows a standard figure of 15.58 kmpl.
If you prefer the petrol variant, then the MG Hector Plus Select Pro 1.5 MT 7 STR is for you. It’s priced at ₹19,10,300.
This 7-seater SUV has a 1451 cc 4-cylinder engine that produces 141 bhp of power and 250 Nm of torque. It offers only manual transmission.
The ARAI mileage test shows a 13.79 kmpl of fuel efficiency.
4. Hyundai Alcazar
The Hyundai Alcazar offers a wide range of 7-seater SUVs under ₹20 lakh. This 3-row midsize SUV received a significant facelift in 2024, bringing updates to its design, interior features, and powertrain. Available in both 6- and 7-seater configurations, it remains a key offering in Hyundai’s lineup.
The SUV is offered in multiple variants, including Executive, Corporate, Prestige, Platinum, and Signature trims, with both petrol and diesel options. Prices start at ₹14.99 lakh for the turbo-petrol and ₹15.99 lakh for the diesel variant, while top-end models like the Signature Matte 6Str Diesel AT and DCT versions can go up to ₹21.70–₹21.74 lakh (ex-showroom).
In June 2025, Hyundai introduced new variants such as the Corporate 7S Diesel MT (₹17.86 lakh), Corporate 7S Diesel AT (₹19.28 lakh), and Prestige 1.5 Petrol DCT 7STR (₹18.63 lakh). Typically, diesel variants cost ₹1–1.01 lakh more than their petrol counterparts for manual versions and ₹64,800–₹84,900 more for automatic ones.
Under the hood, the Alcazar offers two refined engines: a 1.5L turbo-petrol delivering 158 BHP and 253 Nm torque, paired with a 6-speed manual or 7-speed DCT, and a 1.5L diesel producing 114 BHP and 250 Nm, available with 6-speed manual or automatic options.
ARAI mileage figures are impressive—17.5 kmpl (petrol MT), 18.0–18.1 kmpl (petrol DCT), 20.4 kmpl (diesel MT), and 18.1 kmpl (diesel AT). In real-world usage, petrol DCT variants return 6–9 km/l in city traffic and 14–17.8 km/l on highways, while diesel AT models deliver around 12.5 km/l in the city and 16.3 km/l on highways.
The Alcazar also supports E20 fuel and features an auto start-stop system for better fuel efficiency in urban conditions.
| Variant | Fuel / Engine | Transmission | Seats | Ex‑Showroom Price (₹ lakh) |
|---|---|---|---|---|
| Executive 1.5 Petrol | Petrol, 1.5L Turbo | 6‑MT | 7 | 14.99 |
| Executive Matte 1.5 Petrol | Petrol, 1.5L Turbo | 6‑MT | 7 | 15.14 |
| Executive 1.5 Diesel | Diesel, 1.5L CRDi | 6‑MT | 7 | 15.99 |
| Prestige 1.5 Petrol MT | Petrol, 1.5L Turbo | 6‑MT | 7 | 17.22 |
| Prestige 1.5 Diesel MT | Diesel, 1.5L CRDi | 6‑MT | 7 | 17.22 |
| Prestige Petrol DCT | Petrol, 1.5L Turbo | 7‑DCT | 7 | 18.64 |
| Corporate 1.5 Diesel MT | Diesel, 1.5L CRDi | 6‑MT | 7 | 17.87 |
| Corporate Diesel AT | Diesel, 1.5L CRDi | 6‑AT (Torque Con.) | 7 | 19.29 |
| Platinum Petrol MT | Petrol, 1.5L Turbo | 6‑MT | 7 | 19.75 |
| Platinum Petrol DCT | Petrol, 1.5L Turbo | 7‑DCT | 7 | 21.10 |
| Platinum Diesel AT | Diesel, 1.5L CRDi | 6‑AT | 7 | 20.95 |
| Signature Diesel AT (6‑STR) | Diesel, 1.5L CRDi | 6‑AT | 6 | 21.59 |
| Signature Petrol DCT | Petrol, 1.5L Turbo | 7‑DCT | 7 | 21.39 |
| Signature Diesel AT (7‑STR Dual Tone) | Diesel, 1.5L CRDi | 6‑AT | 7 | 21.54 |
5. Mahindra XUV700
The Mahindra XUV700 offers impressive value under ₹20 lakh, starting with its base MX Petrol MT 7-seater model priced at ₹14.49 lakh (ex-showroom) and topping out under that threshold with variants like the AX7 Petrol MT 7-seater at ₹19.49 lakh and the AX5 Diesel MT 7-seater at ₹19.04 lakh. These entry-level trims include either a 2.0 L petrol engine with 197 bhp paired to a 6-speed manual or a 2.2 L diesel producing 182 bhp with a manual transmission. Even under ₹20 lakh, buyers enjoy key features such as 7 seats, 235/60 R18 wheels, 200 mm ground clearance, a spacious 60 L fuel tank, and the SUV’s acclaimed 5-star Global NCAP safety rating
| Variant | Fuel / Engine (cc) | Transmission | Seating | Ex‑Showroom Price |
|---|---|---|---|---|
| MX Diesel MT 7 STR | ₹14.49 L | 6‑MT | 7 | ₹14.49 L |
| MX Petrol MT 7 STR (ESP) | Petrol, 1997 cc | 6‑MT | 7 | ₹14.99 L |
| MX Diesel MT 7 STR (ESP) | Diesel, 2184 cc | 6‑MT | 7 | ₹15.49 L |
| AX5 Select Petrol MT 7 STR | Petrol, 1997 cc | 6‑MT | 7 | ₹19.04 L |
| AX5 Select Petrol AT 7 STR | Diesel, 2184 cc | 6‑MT | 7 | ₹16.89 L |
| AX5 Petrol MT 7 STR (ESP) | Petrol, 1997 cc | Auto (TC) | 7 | ₹18.64 L |
| AX5 Diesel MT 7 STR | Petrol, 1997 cc | 6‑MT | 7 | ₹18.84 L |
| AX7 Petrol MT 7 STR | AX5 Select Diesel AT 7 STR | 6‑MT | 7 | ₹19.24 L |
| AX7 Petrol MT 7 STR | Petrol, 1997 cc | Auto (TC) | 7 | ₹19.99 L |
| Diesel, 2184 cc | AX7 Petrol MT 6 STR | 6‑MT | 7 | ₹19.49 L |
| AX7 Diesel MT 7 STR | Diesel, 2184 cc | 6‑MT | 6 | ₹19.69 L |
| Diesel, 2184 cc | Diesel, 2184 cc | ₹19.99 L | 7 | ₹19.99 L |
Bottom Line
SUVs are becoming increasingly popular in India, and this is leading to great things. For example, now that SUVs are in demand, companies can produce them more efficiently, which helps them become more affordable. I think that this is a big win because now middle-class families in India can also have access to 7-seater cars for their large family.
FAQs
Which 7-seater SUV under 20 lakh gives the best mileage?
Among the popular 7-seater SUVs under ₹20 lakh, the Hyundai Alcazar Diesel MT stands out for offering the best mileage. It delivers an ARAI-certified mileage of 20.4 kmpl, making it the most fuel-efficient option in this price segment. Other SUVs that can be considered fuel efficient are the Mahindra XUV700 Diesel MT (17.0 kmpl), Tata Safari Diesel MT (16.1 kmpl), and Kia Carens Diesel MT (21.3 kmpl).
Which 7-seater SUV car is No. 1 in India?
The current top 7-seater SUV in India — based on popularity and expert recommendations — is the Mahindra XUV700.
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Disclaimer:
The content presented in this article is derived from publicly available sources, speculative media reports, and unofficial information. No official statement, specification, or confirmation has been released by the manufacturer at the time of publication. This article is intended for informational purposes only and should not be construed as factual or final. Readers are advised to consult official communications and verified announcements from the manufacturer for accurate and up-to-date details. The publisher assumes no responsibility for any decisions made based on the information herein.
