The Tata Nexon is a good option to consider. The 1.5-litre diesel engine is quite efficient, and the AMT gearbox is smooth enough for city use. The Nexon is also a very safe car, with a 5-star Global NCAP rating.

What is also segment-best on the Nexon is the ride comfort. The suspension is tuned well for our roads, and it feels confident over bad patches. The feature list is extensive too, with ventilated seats, sunroof, a large and high-resolution touchscreen and a 360-degree camera. 

Another car you can consider is the Mahindra XUV 3XO. The diesel engine is very strong and more refined, and the AMT gearbox is smooth. The XUV 3XO is also very safe, with a 5-star Global NCAP rating. The rear seat is more spacious than the Nexon's, but the boot is smaller. 

However, out of the two, it is a nicer SUV to drive, but not as good in terms of fuel efficiency. If the economy is the top priority, the Nexon is the one to go for. 

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To answer your question, yes, things have gotten a little confusing after the introduction of E20 petrol, but most of what you've heard is true. Since your new car - a Mahindra XUV 3XO RevX A TGDi AT - is relatively new, it will be E20 compatible. Therefore, you don't have to worry about blended petrol being incompatible with your car or causing it damage.  These vehicles have been built with safeguards against the corrosive nature of ethanol. Any petrol will do, even the most basic type available at any pump across the country. 

Secondly, yes, 91-octane petrol is now effectively 95-octane petrol as ethanol (which has a much higher octane than petrol) raises the overall number. As a result, many fuel brands have discontinued their premium-branded 95-octane option. Instead, only offer 99 or 100-octane (which, incidentally, has 0% ethanol) as the premium option. In short, you now really have just two options - 'regular' petrol (E20 - 95 Octane) and 'premium' (E0 - 99/100 Octane), and you can fill either in your car. 

The car you can consider is the Mahindra XUV 3XO. Its diesel powertrain is one of the smoothest and most refined in the segment, performs well, offers a plush low speed ride, and feels planted at higher speeds. It has also secured a 5 star crash test rating.

The MX3 variant should fit within your budget. While it isn’t the most feature rich trim, it does get a decent level of equipment and doesn’t feel bare bones.

The ideal car for your requirement is the Maruti Suzuki Brezza. Thanks to its wide rear seat, five adults can sit in good comfort, and the ride quality is comfortable enough even for long journeys. It is a proven product and, being a Maruti Suzuki, you can expect low maintenance costs and reliable ownership.

There are, however, two caveats. The Brezza facelift is expected very soon, so it may make sense to wait if you are not in a hurry. Also, the current generation of the Brezza has not been crash tested yet, while the previous generation was tested by Global NCAP and had scored a four star rating.

If you want to buy a car immediately, the Mahindra 3XO is another strong option. It comes with a more powerful turbo petrol engine that delivers effortless performance even with a full load. Its wider body makes it one of the best five seater options in the segment. It has also scored a full five star rating in the Bharat NCAP crash tests.

Within your budget, you can opt for the REVX A variant of the 3XO or the ZXi variant of the Brezza.

With predominantly city driving, DPF issues on the Mahindra 3XO diesel are possible but manageable. The important point is that your usage does include highway runs and a longer outstation trip every few months, which is usually enough to allow proper regeneration and keep the DPF healthy. You do not need any special precautions, but taking the car out for a 20 to 30 minute highway drive every few weeks will help.

Mahindra’s 1.5 litre diesel is a well proven and robust engine, with reasonable service costs and good long term reliability. Major issues typically arise only when DPF warnings are repeatedly ignored. In terms of ageing, Mahindra diesels and drivetrains are known to last well over many years, and electronics have improved noticeably in recent generations.

There is little to complain about when it comes to fit and finish. The Mahindra XUV 3XO has good interior quality and should continue to feel premium over time. That said, the white interior will show signs of ageing sooner than darker interiors, as even minor stains tend to be more visible.

Overall, if you want to own a punchy diesel while you still can, the XUV 3XO diesel makes sense for your usage pattern and should serve you well over a long ownership period.