Since you have a Tata Safari, we assume you want the smaller car primarily for city use, and interior space or highway stability would not be that high on the priority list. Thus, we would suggest the Skoda Kylaq. Measuring under 4 meters in length, it is easy to manage in crowded cities, and the 1.0-litre engine is peppy enough. Importantly, it comes with the option of a torque convertor gearbox, which is the smoothest type to have and something you will appreciate in stop-and-go traffic. If it's a sedan, then check out the Honda Amaze. This too is under 4 meters in length, has light and easy controls, and while the automatic isn't a torque convertor. It has a CVT autobox, which is still the better option to have than an automated manual (AMT).

It is very sad that you're having to retire your well-maintained Polo due to the 15-year rule in Delhi NCR. Since you have a budget of Rs 7 lakhs, we'd advise you to get a 2020-21 Maruti Brezza or Toyota Urban Cruiser, both of which are smooth, well-built cars. Their seating position is high, visibility is good, and controls are light, which makes them very user-friendly. Also, try finding the newest possible example, which will ensure that you drive the vehicle for 9 or 10 years before it reaches the 15-year age-limit.For your outgoing car, you could consider getting in touch with used-car platforms such as Spinny; they'll do the paperwork, and should get you a good price.

The best car from the shortlisted options is the Mahindra XUV 7XO. Ride comfort is excellent, and its engines are smooth, refined, and powerful enough for highway driving and hilly terrains. In case the terrain you tackle is too extreme for front-wheel drive vehicles, you could consider getting the all-wheel drive variant, for better traction. The latter is only available with diesel-automatic variants, and if you have the budget, it will be the best option for your inter-state road trips.

Since you are concerned about mileage, a diesel or petrol-hybrid does make sense, and we can see your confusion between the two. Generally speaking, the hybrid would be a safer bet in the long run, given the uncertainty around diesel with the authorities, plus you will also have a quieter powertrain. However, we have yet to drive the hybrid Renault Duster, and this will only arrive in the second half of this year. So, you would have to wait until then.