If your current car is running well and there are no mechanical concerns, it makes sense to hold on to it for another two years. However, if you are keen on upgrading, the engine to opt for in the Tata Sierra is the 1.5-litre turbo petrol. But for that, you will have to stretch your budget to over 20 lakhs. 

Waiting for a couple of more years might work in your favour, as by then more new products would have entered the market, giving you wider options to choose from.

For you, the best option here is the new Kia Seltos HTX 1.5 petrol IVT. Having grown larger in this new generation, it is among the best in the segment on boot space and legroom, as well as shoulder room and comfort in the second row, with only the Tata Sierra offering slightly more. Moreover, it is reliable, and Kia is known to be quite hassle-free in terms of service and after-sales care. 

The 1.5 petrol with the CVT gearbox is the smoothest powertrain on offer - the diesel is smooth too, but given your usage and budget, it's better to save some money and get this version instead.

The DPF clogging issue is not as bad as you might think, and even with 20 percent highway driving, you should be able to cycle it without any extra effort. Still, since your usage is under 1500km a month, petrol is probably a more viable option anyway. 

Both these SUVs should fall comfortably in your Rs 30 lakh budget for their top-spec versions, and the greater dilemma is the choice of engine and gearbox. The Tata Sierra's 1.5 NA petrol is rather weak, and its DCT gearbox isn't smooth, so we don't recommend it. The Kia Seltos' 1.5 petrol CVT is much better, more powerful and smoother too. 

Conversely, when it comes to turbo petrols, the Tata's 1.5 turbo with the torque-converter auto is smoother than the Seltos' T-GDi DCT, so it comes out on top. Overall, considering the SUV as well as the powertrain, given your usage, we'd recommend the Seltos 1.5 IVT.

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Between the three cars, if you are looking for a car for city commutes and considering your budget, we would suggest the Kia Seltos. In your budget, you will get the HTE (O) powered by a 1.5-litre naturally aspirated petrol engine. The engine is smooth, refined and has enough power for daily usage and even for highway driving, it feels enough. The new Seltos too feels premium inside out, and even in the bottom or in this case mid variant comes very well equipped.

The Tata Sierra’s 1.5-litre naturally aspirated engine feels just about enough for city driving, but out on the highway, it could have done with more power. In your budget, you will get only the base Smart + variant, or if you stretch by 50,000 over your budget, then the Pure variant will fit. But the Sierra in the lower variants is not that well equipped. In fact, the base variant does’t come with an infotainment at all.

The Skoda Kushaq facelift will be launched in March 2026, and if you are willing to wait, do glance at it. It will come with revised design and more features than the current car.

The Tata Sierra and Kia Seltos remain two of the few SUVs in this segment that still have a diesel engine option. 

As such, they're quite similar on paper - both are 1.5-litre, four-cylinder units and both are mated to smooth 6-speed torque converter automatic gearboxes. Their outputs are similar too; the Seltos produces 116 hp and 250Nm while the Sierra a slightly higher 118hp and 280Nm, and in practice, the Sierra's diesel engine feels the stronger and punchier of the two as well. 

It is better suited to quick overtakes, and its 6-speed AT is a bit more responsive too. The Seltos has the advantage of being more refined, but other than that, its gearbox is not as snappy, and overall it feels the lazier of the two powertrains.