Given your requirements, the Maruti Suzuki Fronx would be a better choice, as it offers higher fuel efficiency. The 1.2-litre petrol engine is efficient and also has enough performance for the hills. What is also better on the Fronx is the ride quality, which is an advantage over rough terrain. 

The Delta+ version also gets a decent set of features, including LED headlamps, keyless entry, automatic climate control, and more. Our pick between the two would be the Maruti Fronx. 

The Maruti Suzuki Swift is a very good choice as a city car. It has compact dimensions, light steering and good fuel efficiency. Powered by a 1.2-litre 3-cyl engine, the Swift has enough performance while maintaining a strong fuel economy of around 14kpl in the city. 

What's also a positive is the ride comfort, thanks to its soft suspension setup, which helps bump absorption. In your budget, you can get the top-spec ZXI+ trim that gets a well-appointed cabin with all the necessary features. 

The cherry on top is also how well the Swift holds its resale value. 

Considering your city usage and no mention of any preference for body style between the two, we would suggest going for the Maruti Suzuki Baleno as compared to the Dzire. Both cars are spacious and have a comfortable ride quality and are similar in terms of interior quality. 

But the Baleno has two key advantages. The boot space is more usable thanks to it being a hatchbcak and you can also fold the rear seat for added luggage space, which makes it more practical when you need to carry long items or want extra luggage space. 

The Baleno also uses the older 1.2 litre dual jet four cylinder engine, which is smoother and more powerful than the new 1.2 litre three cylinder engine on the Dzire. If you are looking for an automatic, the AMT gearbox also works better on the Baleno.

As an alternative, you could also consider getting the Maruti Suzuki Fronx. It is slightly more expensive but gives you a more SUV-like stance with better ground clearance and added road presence, while still being easy to drive in the city.

Given your requirements, you should consider the Maruti Suzuki Victoris strong hybrid. Since your running is high, around 24,000km a year, you will benefit from the Victoris strong hybrid's excellent fuel efficiency, which is claimed to be 28.65kpl. 

Furthermore, the Victoris has a comfy ride quality, and it comes with features such as a panoramic sunroof, ventilated front seats, auto climate control and much more. The SUV has also received a full, 5-star crash safety rating from Bharat NCAP. 

Being a Maruti, it will also be stress-free to maintain. Maruti Victoris strong hybrid prices range from Rs 16.38 lakh to Rs 19.99 lakh (ex-showroom, India).

The Kia Carens is a better pick between the two options you are considering. The Carens is a more modern and more spacious MPV compared to the Maruti Suzuki Ertiga. It also has a more powerful and efficient 116hp, 1.5-litre diesel engine option.

The Kia Carens Premium (O) diesel comes with all necessary features like 6 airbags, TPMS, an 8-inch touchscreen with wireless Android Auto and Apple CarPlay, a height-adjustable driver's seat and more. The Kia Carens Premium (O) diesel manual is priced at Rs 12.77 lakh (ex-showroom, Delhi).

The Honda Amaze ZX CVT is the one we'd recommend for you. It's got the smoother gearbox, which has a big bearing on your overall highway experience. Further, the Amaze also feels more confident at highway speeds. The Amaze doesn't stand out for tech features, but it packs in all the essentials (touchscreen, Android Auto/Apple CarPlay, cruise control, and auto climate control) and more to ensure a comfortable drive. 

A key differentiator on the Amaze is ADAS, which adds a layer of protection, especially on highway drives. Also, Honda's CVT is reliable. In general, the Amaze is a hassle-free car. 

Where the Amaze trails the Maruti Baleno is in fuel economy. The Baleno's AMT ekes out a better real-world economy than the Amaze's CVT. Even so, as a package, the Amaze is the one for you.  

​If you are looking for good mileage, you can consider the Maruti Suzuki Fronx 1.2 litre. In our real-world testing, it returned over 13 kpl in the city and around 20 kpl on the highway. It has a 190mm ground clearance and a 308litre boot. 

Another option - if you have access to CNG stations, you could look at the updated Tata Punch CNG. While the petrol Punch is not the most fuel-efficient option, the CNG version will lower your running costs significantly. 

While its 193mm ground clearance is sufficient for most roads, the 210-litre boot space (CNG) is smaller and may not meet your requirements.

Between the two options on your shortlist, the Tata Sierra makes for a better upgrade from your Volkswagen Taigun. The Sierra's larger dimensions, roomier cabin and modern vibe make it feel like a step up from the Volkswagen. The Grand Vitara, though likeable, doesn't offer much more by way of space or features versus your current car.

You should also consider the new Kia Seltos. Its large size and sleek styling give it a premium appeal. There's sufficient cabin space for three at the back (a Sierra is roomier, though), and it's packed with lots of tech too.   

Between the two, if you are looking for something more premium and newer, we would suggest going for the Kia Carens Clavis in the HTE (EX) variant. It is the newer of the two and is also larger, offering a greater sense of space. Overall, it feels more premium and upmarket both inside and out.

In terms of equipment, both cars are fairly well equipped, but with different highlights. The Maruti Suzuki XL6, being the top variant, offers features such as leatherette upholstery, ventilated front seats and alloy wheels. The Clavis, on the other hand, is offered with a sunroof, which the XL6 does not get.

When it comes to performance, both cars are quite similar as they use 1.5-litre naturally aspirated petrol engines. While the Clavis has a more powerful engine on paper, it is also the larger and heavier car, which reduces that advantage in real-world driving. Where the Clavis clearly stands out is engine refinement and sound insulation, where it feels a notch better than the XL6.