Skoda Slavia

For your needs, the Volkswagen Virtus and Skoda Slavia are good options. Both cars are mechanically identical, so it ultimately comes down to which one you prefer in terms of styling and interiors, and which brand has a service centre closer to you. Performance from the 1.0-litre TSI engine is more than adequate for your highway trips, and fuel efficiency is respectable on the highway as well. The six-speed torque converter is excellent; however, in your case, since most of your driving is on the highway, the slick 6-speed manual is a fine choice.

Volkswagen and Skoda have had a reputation for higher maintenance costs in the past. But both brands have improved things significantly with their INDIA 2.0 cars, which include the Virtus and Slavia. 

One thing to note, however, is that facelifts for both models are expected shortly. While these are likely to be relatively minor updates, similar to the one the Skoda Kushaq recently received. The 6-speed automatic is expected to be phased out and replaced by a new 8-speed unit, as seen on the Kushaq. Do consider this in your purchase decision.

The Skoda Slavia 1.0 TSI offers a decent level of performance, and if you are simply looking for a casual, relaxed drive, this will do just fine. The 1.5 litre engine, though, does offer a higher level of performance, so opt for this if you are looking for a fun-to-drive car. 

In the city, the 1.0 litre engine will also be a bit more efficient. On the highway, though, the 1.5 tends to return a better average on account of its cylinder deactivation tech. We would definitely recommend waiting for the updated car, as, besides updated styling, there would be some technical upgrades like an improved AC system. 

You can consider the Skoda Slavia 1.0 TSI manual. It is a well-rounded compact sedan that offers a good balance of space, comfort, and features. The 1.0-litre turbo-petrol engine is peppy and efficient, and the manual gearbox is slick to use. In your budget, you can get the top-spec Monte Carlo trim that gets a well-equipped cabin and all necessary features. 

The Slavia also gets a decently long list of features, including a sunroof, a wireless charger, and a connected car tech and a massive boot. 
However, if it is an SUV that you want, the Hyundai Venue in its HX8 guise gets you a turbo-petrol engine with 120hp and a slick manual gearbox as well. 

It is also loaded with features since it is a top-spec and will be a worthy rival to the Slavia if boot space is not the top priority. Both cars have good ground clearance, so that will not be an issue. 

Sadly, there is absolutely nothing in the Rs. 30-40 lakh range that can replace your Skoda Octavia and give you a similar driving pleasure. In fact, there are no sedans at all in that price range, and neither are there any SUVs with the character and feel of the Octavia you are looking for. 

The Octavia RS is your best option, but on-road prices around Rs 60 lakh are way beyond our budget. The Skoda Kodiaq in the region of Rs. 50 lakh is less of a stretch, and though it's an SUV, it has Skoda’s DNA of good ride and handling. 

If you simply cannot stretch your budget, you can downgrade to the Skoda Slavia 1.5 with the 7-speed DSG. It’s a very entertaining car to drive fast, and being a sedan comes closest to your Octy in terms of character.