The 1.5TSI versions of the Skoda Kushaq, Skoda Slavia, Volkswagen Taigun and Volkswagen Virtus, will certainly bring a smile to your face with their performance as well as dynamic prowess.

All these feel similar from behind the wheel, so pick the body style you prefer -  sedan or SUV. Out of these, the Kushaq is likely to get updated in the coming weeks, so you may want to check that out before making your decision.

On the other hand, if you want a car that looks sporty, drives well, and has features like ADAS, you could also consider a Hyundai Creta N Line and Verna.

It's hard to recommend a car without knowing more about your requirements, like space, mileage, number of seats, etc. However, within your specific budget, no US options are available. From the European manufacturers, only the Skoda and Volkswagen cars are there.

We would recommend you look at the Skoda Kushaq or Volkswagen Taigun, which are essentially the same SUV. Also, if you would prefer a sedan, the Skoda Slavia and its sister car, the Volkswagen Virtus, are the options.

These sister models of Skoda and Volkswagen are essentially the same, sharing all their mechanical components and a lot of the exterior and interior bits too. Thus, choosing between them would come down to the level of dealer support in your area and your own preference in terms of the individual car's style.      

It’s true that Volkswagen cars are well-built and have strong engines. We don’t know your budget, but assuming you want a Kia Seltos replacement, the Volkswagen Taigun with the 1.5 TSI and 7-speed DCT is a good option. 

It is rapid, feels sporty and stable, and has all the characteristics you are looking for in a Volkswagen. If you can extend your budget to around Rs. 40 lakh, then it might be worthwhile waiting for the Volkswagen Tayron, which is a seven-seater and is expected before March 2026. 

We recommend listing your car on spinny.com, which is the best online platform to sell your car
 

The most fun-to-drive SUVs in your budget are the 1.5-litre Volkswagen Taigun and Skoda Kushaq twins, which are very engaging thanks to their brilliant dynamics and a powerful, punchy engine. 

Both are due for a facelift, and the upgraded Kushaq is just around the corner and scheduled to launch on January 20th 2026. The Volkswagen Taigun facelift will come a month later. Both these SUVs will see some significant enhancements to the air conditioning and interiors. 

Top-end variants will come with rear massage seats, a first in the segment. However, one weakness is the rear seat space, which is relatively narrow and best for four. 

Therefore, if this is a deal-breaker for you, you could consider the Tata Sierra. It is fantastically spacious, has superb ride and handling and an all-new 1.5 petrol engine, which is smooth, punchy and fairly efficient too. 

The Sierra is not as engaging to drive as the Kushaq and Taigun, as it is heavier and has a relaxed power delivery. We would rule out the MG Hector in your case as it is too big, it's not a very engaging car to drive, and as you said, it guzzles fuel.
 

Since you've already owned a Honda car, you might like what the Elevate has to offer. Its ride comfort is its highlight; the high seating will make it easy for your parents to get in and out, and its petrol engine delivers strong performance. 

The Volkswagen Taigun is smaller in size, which makes it a bit easier to park and manoeuvre. However, it doesn't feel as user-friendly as the Honda, since the manual's clutch is a touch heavier, and the automatic isn't as seamless as the Elevate's either. 

Since you're not keen on the Maruti Victoris or Kia Syros, you can also consider the Toyota Urban Cruiser Hyryder.