Yes, the Volkswagen Taigun is a lot of fun to drive, however if you are open to going electric, you could sell one and get an EV. That way, you will still have an internal combustion car for any occasional highway trips. 

Since both you and your wife's daily drive is within the city, either of you could use the EV, and range would not be an issue. Also, besides the lower running costs, you could also benefit from things like toll and parking fee waivers for EVs in certain cities. 

Consider the Hyundai Creta EV, which is a no-nonsense and practical car. However, if you do want a fun-to-drive electric, check out the Mahindra XEV 9S, or even the Mahindra BE6, which is very exciting to drive but has quite a few ergonomic issues.    

Opting for an electric SUV could be save you from a lot of uncertainties in the future around fuel mix, registration validity, etc., which might concern ICE vehicle owners. 

With a budget of Rs 20 lakh, the most sensible and trouble-free EV option is an entry-level Hyundai Creta Electric. If you want space, features and a fully-loaded car, the MG Windsor EV is also a good option to consider. 

The entry-level Mahindra BE 6 is a stand-out EV that also falls within your Rs 20 lakh budget.

The Mahindra BE6 is a fun and exciting car, but it isn't the ideal choice for a new driver. It is quite powerful, and the performance can catch inexperienced drivers off guard. Moreover, the BE6 is wide, and visibility isn't the best, which could cause some discomfort. 
Among electric vehicles of a similar price, the Hyundai Creta Electric makes for a generally more user-friendly choice and is the one we'd recommend you consider.

An electric vehicle will prove to be far more economical for you if you primarily plan to charge it at home. Most new-age EVs like the Mahindra BE6, Hyundai Creta EV and Tata Harrier EV can comfortably handle highway trips of around 300–400 km on a single charge. So yes, if you have access to home charging, an EV would be the better choice for you.