You're right to say the Kia Carens Clavis is better as a 6/7 seater and as a city car, thanks to its more space-efficient shape yet smaller dimensions. Spec for spec, the HTK (O) plus is probably better equipped than the Mahindra XUV700 AX5, too. 

However, if the Mahindra XUV700 was already your wishlist car and you're getting it at the price you want, you should go for it. It definitely has more road presence, a more powerful engine and comes with the peace of mind of a 5-star NCAP rating. 

Its third row is not amazing, but if your family usage is limited, a little shuffling might be worth everything else it offers. 

The Kia Carens Clavis is the ideal pick for your requirements. It's a well-packaged MPV that offers comfortable seating across all three rows. A one-touch operation for the middle row seat fold makes access to the last row easy. Also, there is ample movement built into the middle row to balance space for all passengers. 

The Clavis is also easy to drive and doesn't intimidate as some three-row SUVs can. From the Clavis line-up, the Turbo DCT HTX(O) is the one to buy.

Of the other three-row petrol-auto options, there's the Hyundai Alcazar, MG Hector Plus, Mahindra XUV 7XO and Tata Safari.

Without knowing your specific requirements, it is hard to give a definitive pick. Broadly speaking, however, the Mahindra XUV7XO diesel AT is the more powerful and exciting choice. 

Its 2.2-litre diesel engine's 185hp and 450Nm are significantly higher than the Kia Seltos' 1.5-litre diesel's 115hp and 250Nm figures. The XUV 7XO diesel feels more effortless, especially on highway drives where the Seltos feels just adequate. 

Both models do use smooth torque converter automatic transmissions, but it's the Mahindra car that is more responsive and quicker to shift to. 

The Skoda Kushaq is a competent mid-sized SUV that stands out for its driving experience. Its 1.0 and 1.5-litre turbo-petrol engines deliver punchy performance, and handling is also slick and fun. The Kushaq also feels tough in its build and comes with the reassurance of strong safety ratings. On the flip side, the Kushaq feels smaller than many like-priced rivals and isn't ideal as a five-seater. 

Skoda will introduce an updated version of the Kushaq later this month. We expect the model to get a few styling revisions outside and more features, too. It might include a panoramic sunroof and a segment-first rear seat massage function. 

The updated Kushaq will also get an uprated air conditioner that will provide stronger cooling, which has been one of the model's weaknesses since launch. While the engine options will continue as is, the smaller engine's 6-speed automatic transmission is expected to make way for a more efficient 8-speed unit. 

To sum up, the Kushaq should be on your list if a fun drive experience is a priority. If space, comfort and features are important, consider the Kia Seltos, Hyundai Creta and Tata Sierra. 
 

Since 80% of your driving will be in city conditions, a smooth driving experience is also something you must give due weightage to. The Kia Seltos IVT and Hyundai Creta IVT deliver that, and top our list of recommendations for you. 

Sure, the 1.5-litre naturally aspirated petrol engine's 115hp isn't great, but real-world performance is actually very nice with brisk acceleration and very smooth responses. The CVT (IVT, as Hyundai and Kia call the gearbox type) is also very smooth. Also, it is free from the rubberband effect (sharp rise in revs without a significant rise in road speed), which this type of gearbox is usually notorious for.   

Of the two models, it's the new Kia Seltos that's the more wholesome package, offering more rear seat space and better ride comfort. Your budget allows you to go for a higher trim level, getting you lots of tech and comfort features. 

 

Some owners have reported certain usage-based issues, like the iMT wearing out the clutch prematurely compared to a standard (three-pedal) manual version, and the actuator fluid needs to be changed periodically. These aside, the iMT works fine, giving users the convenience of a clutch-pedal-free drive, while rowing through the gears manually. 

The Kia Seltos iMT is paired with the turbo-petrol engine, and for your 40 per cent highway driving usage, you will appreciate the turbo's stronger performance, especially while overtaking.

But if you have a sedate driving style, we'd strongly recommend getting the 1.5 petrol-IVT option instead, for its sheer smoothness and convenience. The drive experience will feel far more seamless and effort-free in the city, and even though outright performance isn't as strong as the turbo's, the petrol-IVT does the job quite competently.

The recently-launched Mahindra XUV 7XO is a good option to consider. It replaces the XUV700 and gets interior and exterior changes, along with more features. It is spacious, comfortable and has a strong set of engines. 

The 2.0-litre petrol is smooth and refined, and the 2.2-litre diesel is punchy and relatively efficient. You also get the added practicality of a third row of seats, which the Kia Seltos and Tata Sierra don't get. Mahindra XUV 7XO price range from Rs 13.66 lakh to Rs 24.92 lakh (ex-showroom, India). 

With your budget set at Rs 17 lakh, we would advise you to go with the new Kia Seltos as it is a great all-rounder. Also, you would get a mid-spec car like the petrol manual HTK(O), which, besides the basics, would also get you a few niceties. The petrol engine is also a good performer, delivering a good blend of performance, refinement and efficiency. 

The lower spec Tata Sierra, on the other hand, will come with the 1.5 litre naturally aspirated engine. It is a very sluggish performer, and while the Mahindra XUV 7XO will deliver on this front, it would not be as efficient as the Kia.         

Considering your requirements, you should take a look at the Kia Carens Clavis. The MPV is a well-rounded package that offers a comfortable ride, a spacious and practical cabin for seven people and a lengthy list of features.

The Carens Clavis can be had with a 116hp, 1.5-litre diesel and a 160hp, 1.5-litre turbo-petrol, both of which can be had with manual or automatic gearbox options. Alternatively, you can also consider the Hyundai Alcazar, which is mechanically identical to the Carens Clavis.