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.
 

We suggest you wait for the new Skoda Kushaq, which will be launched next month. It has more features and is great on the highway and twisty roads. 
Your budget may limit you to the 1.0 TSI engine, but that’s a really punchy engine mated to a smooth 6-speed automatic box. The Honda Elevate works well as a city car, but it's nowhere near as good as a Kushaq or even a Skoda Slavia on a twisty road. 
 

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.

Between Rs 15-20 lakh, the best choice for your needs would be the Skoda Kushaq 1.5 TSI with the automatic DSG gearbox. 

Being a mid-size SUV, the Kushaq gets plenty of practicality, but the highlight is its powertrain that has a 150hp turbo-petrol engine and a 7-speed DSG gearbox that is quick to shift. 

Also, the handling manners and chassis tuning make it enjoyable on long trips and around twisty roads. The feature list is also impressive, and you get a lot of kit for the money. The sound system is worth a mention too, and the overall build quality is excellent. The Kushaq would be the right choice and a great replacement for the Nissan Magnite. 

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.