Best Cars for Taxi Business in India in 2024

Best Car for Travel Business in India

Operating a taxi business in India requires having a reliable vehicle that can handle the diverse road and traffic conditions across the country. With factors like fuel economy, passenger comfort, boot space and durability in mind, we look at the top ##car models for taxi services in India## across hatchbacks, sedans and SUVs.

Quick Comparison of Best Taxi Cars in India

Car ModelTypeMileage (kmpl)Boot Space (litres)Ex-Showroom Price (Delhi)
Maruti Suzuki DzireSedan28.4378Rs. 6.49 Lakhs onwards
Toyota Innova CrystaSUV11.4300Rs. 18.09 Lakhs onwards
Mahindra XUV500SUV16720Rs. 14.70 Lakhs onwards
Maruti Suzuki ErtigaMPV20.51209Rs. 8.35 Lakhs onwards
Honda CitySedan17.8510Rs. 11.29 Lakhs onwards

Factors to Consider When Choosing a Taxi Car

Here are some important considerations when selecting an ideal car for taxi business in India:

Fuel Efficiency

Fuel economy should be given prime importance as taxis generally involve covering large distances daily. Opt for cars with engines tuned for efficiency without compromising power. For example, the Maruti Suzuki Dzire with its 1.2L petrol motor delivers 28.4 km/l mileage.

Passenger Comfort

Your taxi riders should feel comfortable throughout the journey. Choose cars with:

  • Spacious legroom and headroom
  • Adjustable seats and lumbar support
  • Effective AC and ventilation
  • Smooth suspension for bump absorption

Cars like the Toyota Innova Crysta and Honda City are renowned for their comfortable and plush interiors.

Reliability and Durability

Taxis have higher wear and tear than personal vehicles. Select cars known for mechanical reliability, build quality and low maintenance needs. The Toyota Innova Crysta has proven dependability even after high mileages.

Boot Space

Sufficient boot space allows riders to carry luggage comfortably. Hatchbacks like the Maruti Suzuki Dzire have over 350 litres of boot space while SUVs like the Mahindra XUV500 offer over 700 litres.

Safety Features

Safety should be top priority. Look for taxis with:

  • Airbags
  • ABS (Anti-lock Braking System)
  • Rear parking sensors
  • Seat belt reminders
  • Speed alerts

Best Hatchback Cars for Taxi Business

Hatchbacks are ideal for zipping through congested streets and traffic with ease. Here are the top picks:

Maruti Suzuki Dzire

  • 1.2L petrol engine
  • 28.4 kmpl mileage
  • 378 litres boot space
  • Dual front airbags, ABS
  • Rs. 6.49 Lakhs onwards

With its fuel-efficient motor, spacious interior and reliable performance, the Maruti Suzuki Dzire is one of the most popular taxis in India. Its low ownership costs also make it quite profitable for taxi operators.

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Hyundai Grand i10 Nios

  • 1.2L petrol engine
  • 20 kmpl mileage
  • 260 litres boot space
  • Rear parking sensors, seatbelt reminder
  • Rs. 5.69 Lakhs onwards

The Hyundai Grand i10 Nios strikes a good balance as a city commuting hatchback taxi with its efficient engine, decent boot space and smooth handling. The sufficient safety tech adds further peace of mind.

Tata Tiago

  • 1.2L petrol engine
  • 23.84 kmpl mileage
  • 242 litres boot space
  • Dual front airbags, ABS, rear camera
  • Rs. 5.38 Lakhs onwards

Known for its value-for-money proposition, the Tata Tiago delivers excellent fuel economy along with modern comfort and safety features making it a smart taxi choice.

Best Sedan Cars for Taxi Business

Sedans provide that extra bit of legroom, boot space and comfort for longer journeys. Popular picks include:

Toyota Innova Crysta

  • 2.4L diesel engine
  • 11.4 kmpl mileage
  • 300 litres boot space
  • 7 airbags, vehicle stability control
  • Rs. 18.09 Lakhs onwards

The Toyota Innova Crysta is the undisputed leader among taxi sedans with its proven reliability, spacious interior, ride comfort and high resale value. Fuel efficiency is decent for its engine size.

Honda City

  • 1.5L petrol engine
  • 17.8 kmpl mileage
  • 510 litres boot space
  • 6 airbags, ABS, hill start assist
  • Rs. 11.29 Lakhs onwards

The Honda City strikes the optimal balance between comfort, performance and efficiency. Interiors are plush with excellent legroom while safety tech like 6 airbags provide peace of mind.

Hyundai Verna

  • 1.5L diesel engine
  • 25 kmpl mileage
  • 480 litres boot space
  • Rear parking camera, ABS
  • Rs. 9.93 Lakhs onwards

Hyundai Verna provides a premium sedan experience with its refined engine, generous space and modern styling. Strong mileage and after-sales service make it a viable taxi option.

Best SUVs/MPVs for Taxi Business

For outstation trips and rugged terrain, SUVs with their space and power are ideal. Notable models include:

Mahindra XUV500

  • 2.2L diesel engine
  • 16 kmpl mileage
  • 720 litres boot space
  • 6 airbags, ABS, front parking sensors
  • Rs. 14.70 Lakhs onwards

With seating for 7-8 passengers, powerful performance and immense luggage room, the Mahindra XUV500 is built for taxi duty. High ground clearance allows it to handle uneven roads too.

Toyota Innova Crysta

  • 2.4L diesel engine
  • 11.4 kmpl mileage
  • 300 litres boot space
  • 7 airbags, vehicle stability control
  • Rs. 18.09 Lakhs onwards

The Innova Crysta is the gold standard for outstation taxi services with its proven reliability, cabin space, ride quality and low maintenance. Ideal for longer trips.

Maruti Suzuki Ertiga

  • 1.5L diesel engine
  • 20.51 kmpl mileage
  • 209 litres boot space
  • Dual front airbags, ABS
  • Rs. 8.35 Lakhs onwards

A compact yet versatile MPV, the Maruti Suzuki Ertiga provides 3 rows of seats, ample space and great fuel economy making it a popular taxi for families.

How to Buy the Ideal Car for Your Taxi Business

Here are some tips on choosing the right taxi for your specific needs and conditions:

  • Consider your typical customer profile – airports transfers, daily office commutes, outstation trips etc.
  • Analyze the road conditions in your operating area – smooth highways or broken city roads.
  • Estimate the average daily taxi mileage to calculate ideal fuel efficiency.
  • Pick taxi variant with ideal seating capacity – 5 seater for regular trips, 7 seater for larger groups.
  • Opt for diesel engines for high mileage if the bulk of rides are long distance. Otherwise petrol engines have lower cost.
  • Check ownership reviews online to identify potential issues for models in your shortlist.
  • Compare new versus used taxi prices and weigh pros and cons of both options.
  • Consider financing options to pay for your taxi conveniently.


Choosing the ideal car for taxi business in India requires factoring in parameters like fuel efficiency, passenger comfort, luggage room, durability as well as acquisition cost. Hatchbacks like Maruti Suzuki Dzire are great for city rides while Toyota Innova Crysta remains the undisputed champ for outstation trips. Careful research and financial planning will help pick the taxi car best suited for your specific business needs and constraints.

FAQs on Best Cars for Taxi Business

What is the best car for taxi business in India?

The Toyota Innova Crysta is considered the best overall taxi car in India due to its proven reliability, low maintenance, interior space, ride comfort and high resale value.

Which is better for taxi business – petrol or diesel car?

For primarily long distance taxi trips, a diesel car like Toyota Innova Crysta would be better suited given their high fuel economy. For shorter city commuting, petrol models offer lower ownership costs.

What mileage do taxi cars need?

A mileage of at least 15-20 kmpl is recommended for diesel taxi cars whereas 18-28 kmpl is ideal for petrol cars used in taxi business depending on the typical trip distances.

How much boot space do taxi cars require?

At least 300 litres of boot space is recommended for sedan taxis whereas 400+ litres is ideal. For hatchbacks used as taxis, a minimum boot space of 200 litres is preferred.

What taxi car is the cheapest to maintain?

Maruti Suzuki models like Dzire and Ertiga have proven to be quite affordable to maintain over their lifetime owing to their reliability, parts cost and service network. This makes them economical taxi choices.


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