Having just visited and stayed with family in Kolkata and back to my homeland, UK, I was amazed at the change of cars there. Having only been back to India in 18 years a lot has certainly changed in terms of brands. From what my family had originally (a 23 year old rusting FIat 1300 to Suzuk/Maruti vans. Amby saloons) and now a Hyundai i20, the Hyundai is similar to the Maruti 800/Omni in the barest sense that it offers practicality with a hatch instead of a boot.
In terms of what I observed as a child, it seems to me that India has always been obsessed with the sedan shape and reserves its ideas citing the sedan shape to be classier than a hatchback, a view that was also once held by the Chinese.
In the UK booted sedans or saloons are not popular. They have never been popular because traditionally the rear seats were fixed and did not fold down. We Brits like our practicality and tend to overload the boot with shopping and children's push chairs. A sedan is simply not designed to be filled to such a capacity, even if it does have folding rear seats. Sedans are also long and more difficult to park - and because the UK gets so much rain, most hatchbacks are fitted with rear wash wipers, which in parts of India is an absolute essential.
The only successful sedans or saloons have been from premium brands such as Volvo's S40, BMW 3 series, VW Jetta/Vento and at a push any product from GM within the Focus class - Ford's own Focus saloon in the UK hasn't seen much sales success though and infact Ford did not go on to offering a replacement.
There is nothing stopping the existing brands in India to offer high end premium features in cars that are already selling. In the UK we have the rather excellent Suzuki Swift Sport 1.6 litre. It is a fast little rocket, built well and comes with all the kind of electrics I would be happy with.
However, Kolkata in particular requires a car that has higher ground clearance, and not necessarily a high riding SUV. Skoda in the UK already offer the Octavia with 4x4 high suspension and I believe that with premium features fitted, an Octavia or Suzuki's current line up could sway Indian buyers minds including higher option fitted engines past 1.3 litres.
At the same time though with petrol stations and fuel costs rising, one has to bear in mind that although as mentioned the Volvo V40, BMW 1 series etc lift the senses for better driving characteristics, it can come at a cost due to the high fuel in these cars. It isn't an answer to welcome in newer more premium brands, but rather take a look at the local brands already established in India and push for more premium features and engine options.