BMW X1

Both the Mercedes-Benz GLA and BMW X1 offer a strong list of features. You get auto LED headlamps, dual-zone climate control, a panoramic sunroof, a powered tailgate, connected car tech, ambient lighting, and even some ADAS features on both cars. The Mercedes has an advantage with a 360-degree camera. The BMW gets only a rear-view camera but offers lane-departure warning, which the Mercedes does not.

After that, the choice mainly comes down to interior and exterior design and the way the features are laid out. The BMW’s i-Drive infotainment system is known to be notoriously complicated to use. It should also be noted that the Mercedes has more powerful engines than the BMW. 

As for service, it is highly dependent on your location and the specific service centre. Both brands reportedly have both good and bad service centres around the country.

It would make sense to keep your BMW X1 and sell the Mahindra XUV700. While the XUV700 is cheaper to maintain and offers the added flexibility of a third row, the X1 is newer, has a more premium cabin, provides adequate space for five people, and carries the advantage of BMW’s brand value.

Without knowing your exact requirements, it’s hard to suggest one outright. Among the options you’ve listed, the BMW X3 is the newest and offers the most features, though it’s also the most expensive. The Land Rover Discovery Sport has the advantage of a third row of seats, though it’s best suited for children. The BMW X1 will be the easiest to drive in the city. The next-gen Audi Q5 is still some time away, with its launch expected around 2026. The Jeep Meridian, meanwhile, won’t feel as premium or as refined as the other options you’ve mentioned.

In your budget, it's best to go for the BMW X3, although you might have to stretch by Rs 2-3 lakh. It is the newest SUV, offering a strong 2.0-litre diesel engine, plus the latest tech and a spacious and comfortable cabin. The Discovery Sport is a capable car, but it is quite old now and its age shows; if you need a third row of seats, however, do consider it. The X1, in comparison, is a segment below and offers less powerful engines and, of course, less space. The new Audi Q5 launch is some time away, and while it is capable, note that it will only come in petrol guise, not diesel. You could also consider the Mercedes-Benz GLC, whose 2.0-litre diesel is also strong, and it offers a spacious and luxurious cabin as well.