The Tata Punch is a good, practical car that’s proven its mettle for its safety. As you’ve mentioned, its three-cylinder petrol engine feels inadequate, and Tata doesn’t have a solid reputation for after-sales support either.
Since you’re looking for a four-cylinder option with mileage, service costs, as well as safety, we’d recommend you consider the Hyundai Venue, the 1.2 Petrol MT HX2 variant, which is the entry-level variant. As far as smoothness, refinement, space, and an upmarket interior feel go, the Venue is easily the better car.