You're on the right track with the Honda Amaze CVT. For a small family like yours, it's the right size of vehicle - compact enough for city use and spacious enough for four. Plus, for your occasional highway drives, it feels quite surefooted and even gets ADAS features on the top-spec version that should take some of the stress out of highway driving. It has also achieved a 5-star Bharat NCAP crash test rating, and it comes with most essential features that you might want.

The Tata Sierra and Kia Seltos remain two of the few SUVs in this segment that still have a diesel engine option. As such, they're quite similar on paper - both are 1.5-litre, four-cylinder units and both are mated to smooth 6-speed torque converter automatic gearboxes. Their outputs are similar too; the Seltos produces 116 hp and 250Nm while the Sierra a slightly higher 118hp and 280Nm, and in practice, the Sierra's diesel engine feels the stronger and punchier of the two as well. It is better suited to quick overtakes, and its 6-speed AT is a bit more responsive too. The Seltos has the advantage of being more refined, but other than that, its gearbox is not as snappy, and overall it feels the lazier of the two powertrains.

If you are looking at a car purely from the city driving perspective, the Hyundai Venue HX5+ powered by the 1.2 litre naturally aspirated engine will do. It will also prove to be more efficient than the Mahindra 3XO’s 1.2 litre turbo petrol engine. But from the performance perspective, there is a huge gap here. The Mahindra 3XO in the AX5 variant will be much nicer to drive and will feel at home, be it in the city or on the highway. It is also wider, can seat five people in decent comfort and as compared to the HX5+ variant, it has more features too.Considering you drive 90% of the time in the city, we would also recommend you to, go for an automatic transmission. It will be a lot easier to drive and reduce fatigue by a lot. Another car you can consider is the Skoda Kylaq which again is a nice car to drive and is very well priced. You can get the Signature manual transmission variant in your budget or the newly launched Classic + variant if you are looking to buy an automatic.

Given your requirements, you should consider the Maruti Suzuki Victoris strong hybrid. Since your running is high, around 24,000km a year, you will benefit from the Victoris strong hybrid's excellent fuel efficiency, which is claimed to be 28.65kpl. Furthermore, the Victoris has a comfy ride quality, and it comes with features such as a panoramic sunroof, ventilated front seats, auto climate control and much more. The SUV has also received a full, 5-star crash safety rating from Bharat NCAP. Being a Maruti, it will also be stress-free to maintain. Maruti Victoris strong hybrid prices range from Rs 16.38 lakh to Rs 19.99 lakh (ex-showroom, India).