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.

Sadly, there are no all-new Rs 25-30 lakh sedans lined up for launch this year. However, slightly lower down the price ladder, we will see the launch of updated versions of the Hyundai Verna, Honda City, Skoda Slavia and Volkswagen Virtus over the year. 

There's way more choice for the same budget in SUVs with options spanning petrol, diesel, hybrid and EV powertrains as well as with two and three rows of seating, and 4x2 and 4x4.  

The 1.5TSI versions of the Skoda Kushaq, Skoda Slavia, Volkswagen Taigun and Volkswagen Virtus, will certainly bring a smile to your face with their performance as well as dynamic prowess.

All these feel similar from behind the wheel, so pick the body style you prefer -  sedan or SUV. Out of these, the Kushaq is likely to get updated in the coming weeks, so you may want to check that out before making your decision.

On the other hand, if you want a car that looks sporty, drives well, and has features like ADAS, you could also consider a Hyundai Creta N Line and Verna.

It's hard to recommend a car without knowing more about your requirements, like space, mileage, number of seats, etc. However, within your specific budget, no US options are available. From the European manufacturers, only the Skoda and Volkswagen cars are there.

We would recommend you look at the Skoda Kushaq or Volkswagen Taigun, which are essentially the same SUV. Also, if you would prefer a sedan, the Skoda Slavia and its sister car, the Volkswagen Virtus, are the options.

These sister models of Skoda and Volkswagen are essentially the same, sharing all their mechanical components and a lot of the exterior and interior bits too. Thus, choosing between them would come down to the level of dealer support in your area and your own preference in terms of the individual car's style.      

There is minimal choice in the sedan market today, and your best options are the Skoda Slavia and Volkswagen Virtus, which have strong petrol engines, excellent ride and handling and a comfortable cabin. 

They are ideal for your mix of city and highway drives and come with a high level of safety, too. If you are a regular driver and don’t want extra performance, then the 1.0 versions paired to the 6-speed automatic will work well for you. 

Both the Slavia and Virtus are identical except for the design and a few feature differences across the variants. So the one to choose depends on your comfort with the dealer,  the design, your affinity with the brand and the best deals you get.