Best Cars for Taxi Use in India (2025) – Top Picks with Low Maintenance, High Mileage & Insurance Tips

The sun was just rising over Delhi when Rajesh turned the key to his aged taxi. With a loud cough, it started. "Perhaps it's time for a new taxi", Rajesh thought with a sigh. His finances were tight. He wanted one that gives decent mileage, minimal maintenance and doesn't cost a fortune.

And we know the fuel price hike is burning our pockets these days! This is why picking the right car is more important than ever. What if we gave you a list to help you make that decision? Are you wondering which vehicles will be included in the 2025 lineup? Let's examine some choices of the best car for taxi below.

Beat your
Car Insurance rates.

Get Quote

Top 10 Cars for Taxi Service in India (2025)

Picking the best car for taxi use works around reliability, fuel economy, and how much it’ll cost you to keep it running every day. In 2025, the Indian taxi space is still driven by a few trusted names-and a couple of newer ones that are making life easier for cab owners and drivers. Here are 10 cars that make the most sense for taxis this year:

1. Maruti Suzuki Dzire
2. Hyundai Aura
3. Toyota Innova Crysta
4. Maruti Suzuki WagonR
5. Tata Tigor
6. Toyota Rumion
7. Honda Amaze
8. Maruti Suzuki Ertiga Tour
9. Renault Triber
10. Kia Carens

Each one has its own appeal-some are compact and efficient, others are better for big groups or long-distance rides. Let’s break it down.
 

Car Comparison Table

Here’s a detailed comparison of each car with features that matter:

➔ Best Hatchback Cars for Taxi in India

1. Maruti Suzuki WagonR
   Mileage: Over 25 km/kg (CNG)

Source: Carwale

Why it works:

1. 1. Light, compact, and extremely cheap to run. Great for daily city driving, especially for Ola, Uber, and small city cabs.
   2. Low maintenance cost and excellent resale value.
   3. Boot space is decent for a hatchback.

2. Renault Triber
   Mileage: Around 20 km/l

Source: Carwale

Key features:

1. 1. It's a 7-seater hatchback with modular seating. That means it can double up as a family cab or group shuttle.
   2. Offers flexibility without high running costs.

➔ Best Sedan Cars for Taxi in India

1. Maruti Suzuki Dzire
   Mileage: Over 23 km/l (Petrol), higher in CNG

Source: Carwale

Popular for the reasons:

1. 1. Easy to drive, super fuel-efficient, and low on maintenance.
   2. Great legroom and boot space make it a go-to for city and outstation taxis.

2. Hyundai Aura
   Mileage: Over 25 km/kg (CNG)

Source: Carwale

1. 1. Comfortable and affordable-good balance of features and fuel savings.
   2. Boot space is better than expected in this size range.

3. Tata Tigor
   Mileage: 26.4 km/kg (CNG)

Source: Carwale

1. 1. Strong build quality and good suspension for Indian roads.
   2. Feels more premium on the inside compared to others in the same bracket.

4. Honda Amaze
   Mileage: 18+ km/l

Source: Carwale

1. 1. Smooth and refined engine.
   2. Ideal for premium taxi services-a bit more polished inside and out.

➔ Best SUV Cars for Taxi in India

1. Toyota Innova Crysta
   Mileage: Around 15 km/l

Source: Carwale

Yes, it's pricey, but it’s also a workhorse. Long trips, hill stations, or family groups-it does it all with comfort. People trust it. And drivers swear by it.

2. Maruti Suzuki Ertiga Tour
   Mileage: 26.1 km/kg (CNG)

Source: Carwale

A 7-seater that’s affordable and efficient. Perfect for fleet owners and city-to-outskirt routes. Also fits well in the government contract or tourist cab segment.

3. Toyota Rumion
   Mileage: 26.1 km/kg (CNG)

Source: Carwale

Based on the Ertiga platform but with Toyota’s badge and reliability. Very low maintenance, great resale, and preferred by fleet aggregators.

4. Kia Carens
   Mileage: Around 16-17 km/l

Source: Carwale

A bit more premium-better suited for tourist or corporate taxi use. Spacious cabin, smooth ride, and lots of features.
 

Comparison Table (Car Type vs Segment)

Here’s a quick look at which car falls under which segment, so it's easier to shortlist based on what you're looking for:

Factors to Consider When Choosing a Taxi Car

Before buying, think long-term. A cheap car might cost more in repairs. A fuel-efficient one can save you lakhs over time. Here’s what to keep in mind:

• Fuel Economy: If you drive all day, fuel cost adds up fast. Go for cars with high mileage or CNG options.
• Maintenance Cost: Look for models known for low service cost and good availability of spare parts.
• Space: A bigger boot means happy airport customers. More legroom? Happy riders.
• Comfort & AC Performance: In hot cities, a strong AC matters. So does good suspension.
• Resale Value: Some cars hold value better. That’s extra money in your pocket later.
• Brand Network: Cars from brands like Maruti, Hyundai, and Tata have service centers even in small towns.
   

CNG vs Petrol vs EV for Taxi in 2025

Let’s keep this simple. Here’s what makes sense today:

Thus, CNG is still king in 2025 for most taxis. EVs? Worth watching but maybe not your first car… unless your city is EV-ready.
 

How to Choose the Right Car for Taxi Use?

There’s no one-size-fits-all. But there is a right fit for you. Here's how to figure it out:

• What’s your city like? If traffic is heavy, smaller hatchbacks work best. Open highways? Go for a sedan or MPV.
• How many passengers do you usually carry? Regular 5-seaters are fine for most. But shared taxis or airport runs need more space.
• How many kilometers do you drive daily? If it's over 150-200 km, mileage becomes a big deal.
• Do you plan to list on ride apps like Ola/Uber? Check which models are accepted.

Initial budget vs running cost: Sometimes paying a bit more upfront saves more over time. Don’t just go for the cheapest car. Test drive a few. Check the seat comfort, boot space, AC strength, and how the car handles speed breakers. You’ll know.
 

How to Choose the Right Taxi Insurance - Powered by SMC Insurance

Choosing car insurance isn’t just about price. It’s about what you get when things go wrong. Here’s what to look for in taxi insurance:

• Commercial Vehicle Coverage: Normal car insurance won’t do. You need a policy meant for taxi use.
• Third-Party & Own Damage: Make sure both are covered.
• Zero Depreciation Add-on: This helps you get full value for parts during claims.
• Quick Claim Settlement: Because when your taxi is down, you’re losing money.

SMC Insurance makes this easy. Their platform helps compare taxi policies from multiple insurers-side by side. You don’t need to call five agents or fill out long forms. Just log on, choose what fits, and you’re good to go.

They also offer:

• Transparent pricing
• Easy claim tracking
• Support that actually responds

Check more details: SMC Insurance
 

Ready to Start Your Taxi Journey?

Choosing the right Taxi/Cab Insurance can set you up for years of steady income. Start small, stay smart, and always track your running cost.

Need help picking or insuring your taxi car?

Talk to local dealers. Compare insurance on SMC. And if you're stuck, come back here. We’ll help you sort it out.

Wrapping Up,

Selecting the ideal taxi is about more than simply four wheels and a steering wheel; it's also about comfort, cost savings, and maintaining daily operations. In 2025, the best car for taxi business in India are the ones that work tirelessly, use less fuel and don't leave you stuck in the garage. Which one feels right to you? Examine more closely, evaluate your options, then proceed with confidence. After all, the right car is your travelling companion, not just a vehicle.
 

FAQ