Published : 11 September 2026
Read Time : 5 min
Author: Siddharth
Hyundai have introduced a 5-seat version of the Alcazar with the new Lounge Edition. Until now, the Alcazar was only available with 6 or 7 seats. The new configuration brings it much closer to the 5-seat Creta while retaining the Alcazar’s larger body and longer wheelbase. However, the Lounge Edition costs more than both existing Alcazar seating options and the comparable Creta Lounge. Here’s what you get for the premium.

The regular Alcazar Signature diesel-automatic is available with either 6 or 7 seats. The Lounge Edition adds a new 5-seat option to the range.
The following table compares the prices of the Alcazar Signature diesel-automatic with 7, 6 and 5 seats:
The 6-seater is the closest existing alternative because it is the Alcazar’s more rear-seat-focused configuration. The 7-seater, meanwhile, offers 2 additional seats and costs Rs. 89,900 less.
The regular 6-seat Alcazar Signature gets individual second-row captain seats. It also offers second-row ventilation, wing-type headrests and thigh cushion extensions. The 7-seater uses a second-row bench instead.
Hyundai describe the new version as an “exclusive 5-seater lounge like configuration”, but have not detailed the second-row seat arrangement. They have also not stated whether removing the third row changes second-row seat travel or luggage capacity.
That information matters because the Lounge Edition costs more despite offering fewer seats. Until Hyundai reveal the cabin and boot-space details, we cannot say how effectively the Alcazar uses the space freed up by removing the third row.
The Alcazar has traditionally been Hyundai’s 3-row alternative to the Creta. With the third row removed, the Lounge Edition now overlaps much more directly with the Creta as a 5-seat SUV.
The Creta continues to offer a much wider choice of petrol and diesel engines with manual and automatic transmissions. The 5-seat Alcazar Lounge, in comparison, is only available as a diesel-auto.
For a like-for-like comparison, the Creta Lounge diesel-auto is the closest match. Both Lounge Editions use the same 1.5L diesel engine and 6-speed automatic transmission. They also share the headline 11.6-inch rear entertainment screen and similar Lounge-specific upgrades.
The following table compares their prices:
The Alcazar’s main advantage over the Creta is its larger footprint. It is 230mm longer and has a 150mm longer wheelbase.
The following table compares their dimensions:
The larger dimensions help explain where the Alcazar sits above the Creta. However, Hyundai have not published a luggage-capacity figure for the new 5-seat version. So, we cannot yet quantify how much practical advantage the Alcazar’s larger body provides in this configuration.
The main Lounge Edition addition is a single 11.6-inch rear entertainment screen mounted behind the front passenger seat.

It supports video streaming, games, apps and phone mirroring.
The Alcazar Lounge also gets:



The panoramic sunroof is particularly relevant when comparing the Lounge Edition with the regular Signature diesel-auto. The regular 6- and 7-seat Signature diesel-auto variants do not get the panoramic sunroof.
The Creta Lounge gets the same 11.6-inch rear entertainment system and broadly similar Lounge-specific cosmetic changes. Its King base variant already gets a panoramic sunroof with voice controls.
So, most of the headline Lounge Edition equipment is common between the Creta and Alcazar rather than giving the larger SUV a major feature advantage.
The Alcazar Lounge uses the same 1.5L turbo diesel engine and 6-speed automatic transmission as the regular Alcazar diesel-auto.
The Creta Lounge diesel-auto uses the same engine and transmission with identical power and torque figures. Therefore, the Rs. 1.50 lakh premium for the Alcazar Lounge over the Creta Lounge does not buy additional performance.
The 5-seat Alcazar changes the relationship between Hyundai’s 2 SUVs. Users who wanted an Alcazar previously also had to accept a third row. The Lounge Edition removes that requirement and makes the Alcazar a larger 5-seat alternative to the Creta.
However, the value equation is not straightforward.
Compared with the Creta Lounge diesel-auto, the Alcazar costs Rs. 1.50 lakh more. It gives you a 230mm longer body and 150mm longer wheelbase, but the engine, transmission and headline Lounge features are essentially the same.

What could make the 5-seat Alcazar worthwhile is how Hyundai have used the space left by deleting the third row. More luggage room or a meaningfully better rear-seat experience could strengthen its case against both the Creta and regular Alcazar - though we do not know if that is the case, yet.
For now, the clearest reasons to spend more than the Creta Lounge are the larger body and longer wheelbase, while the rear entertainment screen and most other Lounge Edition upgrades are available on both SUVs.
Also Read: Hyundai Creta, Alcazar, Creta Electric Lounge Editions Get 11.6-Inch Rear Entertainment Screen
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Associate Editor
Siddharth enjoys understanding why certain cars click with buyers and figuring out what makes people actually stop and read or watch automotive content. He also has a soft spot for cars that may not always make logical sense, but still leave a lasting impression. Travelling, photography and exploring new cuisines are among his other passions.

























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