Check out the Citroen C3 X, which is one of the most dynamically sorted cars at its price, and quite underrated too. Typical of French cars, the suspension setup is superbly tuned for a mix of exceptional comfort and sharp handling, and it also features a communicative steering system for a car in this class. Combine that with a punchy and smooth 1.2-litre turbo-petrol engine, and you have a car that’s a lot of fun to drive.
With the recent C3 X update, it now gets the features it was missing previously, but you can still get a fully-loaded model – with a smooth 6-speed AT gearbox, if you like – in your budget of Rs 12 lakh.
You could also consider the Skoda Kylaq, which is a bit more spacious, but in your budget, you will only get a mid-spec model.