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.

Since you want to upgrade from your Tata Nexon to a fun-to-drive manual car, you should consider the Volkswagen Taigun 1.5 TSI MT. The Taigun is one of the best handling midsize SUVs, and its 150hp, 1.5-litre turbo-petrol is one of the punchiest around. 

You could also consider the Skoda Kushaq or the Skoda Slavia/Volkswagen Virtus, but none of those get a manual gearbox option with the 1.5 TSI engine - only a 7-speed dual-clutch automatic. 

That is a difficult balance to achieve, but two cars come close to your requirements, the Volkswagen Taigun GT 1.5 turbo and the Skoda Kushaq 1.5 TSi. 

Both use the same engine, and their performance is on par with the Hyundai Creta 1.5 turbo, which already offers strong performance. The advantage of the VW and Skoda engines is cylinder deactivation, which helps significantly on the highway. 

When the engine is under low load, it can shut down two of the four cylinders to save fuel and improve efficiency. Both cars are well-equipped, too. We would suggest waiting for the facelift versions, which are expected very soon.

As per your requirements, you should choose between the Skoda Kushaq and the Volkswagen Taigun. Both midsize SUVs offer decent ride comfort, good high-speed stability and both come with powerful 150hp, 1.5-litre turbo-petrol engines. 

You'll also appreciate both SUVs' driving dynamics. Both are mechanically identical and differ only in terms of exterior and interior design. Dealers will also be offering sizeable year-end discounts on both.