The 1.2-litre K-Series engine in the Maruti Wagon R makes it feel noticeably peppier and relatively more effortless than the 1.0-litre petrol version. Also, being a four-cylinder unit, it is a bit smoother and more refined as well.
Yes, the 1.0 will be a bit more efficient than the 1.2; however, if you like to drive and if it falls within your budget, quite simply go for the 1.2. The Tata Tiago has its strengths, like a good sound system, and better driving manners than a Wagon R; however, in terms of space, user-friendliness, smoothness and overall sales and support, the Maruti car is the one to go for.

