Skoda Yeti will hit the Indian roads by 2011 and is expected to carry a minimum price tag of Rs. 10 lakhs. The exact specifications of the car are not yet known, thus comparison between Innova and Yeti is quiet awkward. Also Skoda has been playing with Indians by following dirty business practices. For eg. how they launched "New Octavia" under the name "Laura" and charged 150% of the Octavia's price.
Mahindra "World SUV" will definitely be more than Rs. 12 lakhs as it would be a premium SUV so that goes out of your budget.
I, personally recommend Japanese cars as they are quiet honest in their business and their cars are capable of running millions of miles without any problems. I rate Toyota Innova above all others in its segment like Scorpio etc. and recommend it without reservation for its mileage etc.