Welcome to TAI
Regarding your query, what I can suggest you are
1. Honda - New Honda City ->
Classy looks(in-out), a very refined engine, great after sales support, quite easy for in-city driving. N'uff said !!
2.Ford - Fiesta Classic ->
Excellent driving dynamics(the best in handling in its class), solid build quality(in-out), great low end torque which supports easy in-city driving, excellent high speed stability, very competitive pricing and quite a beast when it comes to the power and amazing brakes. Low on space and after sales support not as great as hyundai or maruti or not even honda for that matter.
3. Fiat - Linea T-Jet ->
Again a bomb shell, killer looks, excellent build quality, best in class ride comfort, handling, power but misses that edge on the above two options due to the after sales support. There seems to be an improvement on it but will take time.
4. Maruti Suzuki - SX4 ->
Good looks, space. I had fallen in love with it when it was launched, but when I took a test drive, never thought about it again. Driving dynamics are too shaky, not good at handling.
5. Hyundai - Accent ->
A nice car when its wid the crdi engine, but it looks totally out of the league now. I am not sure if you would prefer it.
6. Volkswagen - Vento ->
A very nicely built solid car in your budget, looks, comfort, adequate space and ample amount of safety features. An excellently well designed and integrated boot. Practically good at almost everything in this budget. The variant to your liking might not fall within this budget.
7. Toyota - Etios ->
A very comfortable(practical) sedan for a family, excellent after sales support from Toyota, quality, pricing. Very good for in-city driving. Good amount of space in the boot.
8. Skoda - Rapid ->
Very well built, overall a vento in a shell of Skoda, competitive pricing(a Vento in another shell at a lower price), very good at driving and handling. Overall a nice package in the budget, but the petrol engine is not as good as the diesel. Stories of Skoda after sales service are not so inspiring.
You could also consider the Nissan Sunny and the Tata Manza which I feel are a very good VFM
cars. The decision basically depends on what you want rather than what some1 suggests.
It would be better if you start taking the test rides of all the above and shortlist 2-3 may be 4 which you have your heart pounding upon
. Members here would be able to guide you better from there on...
Good Luck !!