You have a wide choice of cars, but based on your requirements, we would suggest going for the new Kia Seltos.

Within the Seltos range, the 1.5 litre IVT automatic in the HTX variant fits within your budget and offers a very good mix of premium and essential features. It meets almost all your requirements. The 1.5 litre naturally aspirated engine is refined, and the IVT gearbox is silky smooth, especially at low speeds, which makes it extremely easy to drive in stop go city traffic. It also has enough performance for weekend highway use and, while fuel efficiency is not phenomenal, it should consistently return better figures than the turbo petrol options you have shortlisted. The newer generation Seltos has also grown in size, interior space and overall cabin quality, which is now among the best in the segment. Ride quality has improved significantly too, and it feels comfortable both in the city and on the highway.

The Tata Nexon and the new Hyundai Venue are good options, but their turbo petrol engines paired with DCT gearboxes are not as smooth as the Seltos’ IVT. The Seltos is also a size larger, more comfortable and feels more premium overall. The same applies to the turbo petrol powered Skoda Kushaq, which again will not feel as smooth as the Seltos in daily use. The Mahindra XUV 7XO is another size up and, while its 2.0 litre turbo petrol engine is powerful and smooth, the larger size makes it less easy to drive in the city and fuel efficiency will be much lower. Within your budget, the AX3 variant just about fits, but it misses out on several features that the Seltos offers.

The Hyundai Creta is also a good option and uses the same engine and gearbox as the Seltos. However, it is expected to be replaced early next year and, compared to the Seltos, it is smaller, less spacious, offers fewer features and is similarly priced. Because it is nearing replacement, the current model will also age quicker. That said, if you are getting a strong deal on the Creta, it is still worth considering.

Another car you should look at is the Maruti Suzuki Victoris Strong Hybrid. It meets most of your requirements and will be even smoother to drive at low speeds, as it runs on electric power for a large part of city driving. Being a Maruti Suzuki, reliability and after sales support are strong points. It has also scored a 5 star BNCAP rating, and as a hybrid, fuel efficiency is exceptional. In fact, you can expect close to double the mileage of most of the cars you have shortlisted.

A few things to note, however: the Victoris is not as spacious as the Seltos, especially in the rear seat, and boot space is compromised due to the hybrid battery pack under the boot floor.

The cars you have shortlisted are very different, but based on your usage and your mileage requirement, we would suggest going for the Kia Seltos with the 1.5 litre naturally aspirated engine paired to the IVT automatic.

The new Seltos has grown in size compared to the previous generation, which not only improves interior space, comfort and boot capacity, but also gives it better road presence. While it lacks outright punch, for most real world conditions and sedate driving it has more than enough performance, both in the city and on the highway. The biggest strength of this powertrain is its refinement and smoothness, which makes the Seltos a pleasure to drive, especially in urban conditions. In terms of mileage, the Seltos with this engine and gearbox should come close to your requirement of 12 kmpl or more, something the other two cars are unlikely to achieve. You can get the HTK(O) variant in your budget which is well loaded with features too.

The Tata Harrier petrol, on the other hand, is larger and has more presence, but it is also more expensive. In fact, the Harrier turbo petrol with the 6 speed automatic costs over Rs 20 lakh on road, which is more than Rs 2 lakh over your budget. Fuel efficiency will also be lower than the Kia’s, as the Harrier is heavier, more powerful, and turbo petrol engines are generally more sensitive to throttle inputs.

This issue is even more pronounced in the Mahindra Scorpio N. It is the heaviest car here, uses a large turbo petrol engine producing over 200 PS, and while it delivers effortless performance, efficiency takes a hit. Being based on a ladder frame chassis, it is more rugged, but for everyday use it won’t be as comfortable as the other two. If you want to buy a Mahindra, we would suggest looking at the new 7XO instead, as it is more practical, more comfortable, and will also be more fuel efficient.

The Skoda Kushaq and Volkswagen Taigun are indeed good options, and the fact that they have a 5-star safety rating from Global NCAP is a big plus. The absence of a 360-degree camera and ADAS is not a deal-breaker, and they're still worth considering for their strong engines, smooth gearboxes and excellent driving dynamics. 

Do note, however, that both cars are still a few months away, with the Kushaq facelift expected to launch in March, and the Taigun facelift a few months after that. If not those, you could also consider the new Kia Seltos. It hasn't been given an NCAP rating yet, but its smaller sibling the Syros has received a 5-star Bharat NCAP rating, and as the Seltos is built on a new-gen platform, we expect it to get one too. The Seltos impresses with its features list, which includes a 360-degree camera as well as ADAS with Level 2 Autonomous driving.