If you want a proper 6 seater, the Toyota Innova Hycross Hybrid is the better option. It is a more spacious and comfortable 7-seater of the two. Mahindra XUV 7XO has been updated recently and is rich in tech; its last row is not comfortable for adults. 

Toyota Hycross also meets all your priorities - Stable drive, reliable and fuss-free ownership. Added advantage, you will get excellent mileage with its strong hybrid powertrain. 

The Skoda Kylaq meets all your requirements of fun to drive and safety. It’s fairly reliable, too, but doesn’t have the reputation for reliability like a Japanese brand. The sales and service are considerably improve and Skoda has worked to bring down spare parts and service costs as well. 

The air conditioning is an issue with Skodas, but the company has fixed it in the new Kushaq, and we expect to see these improvements in the Kylaq too. The Aircross is a lovely car to drive, but its dealer and service network needs to improve. The Mahindra XUV 3XO is a great all-rounder and the best equipped, but it's not as much fun to drive as the Kylaq. 

Given your priorities, we would recommend you look at the Mahindra XUV 3XO in compact SUVs. It's got a tough build, strong engines and scored well in terms of cabin space. Alternatively, you could look at the turbo versions of the Nissan Magnite and Renault Kiger. The two models are underrated and actually deliver great value for money. 

Among sedans, if you don't mind the absence of many tech and comfort features, the entry-level Skoda Slavia and Volkswagen Virtus are worth considering. Their strong turbo-petrol engines and tough build are highlights. If you want more features, there's the Maruti Suzuki Dzire, but you'll have to compromise on power and performance. 

In a market, as ours, where there's a new launch every couple of months, your predicament is understandable! Given your requirements, we've narrowed the list of options down to the Kia Syros and Mahindra XUV 3XO. Both compact SUVs offer comfortable seating for five passengers, which is a priority for you. 

The Kia Syros has a roomier interior and also offers more flexibility with its unique sliding rear seats. The clean layout of the dash and crisp screens also gives the interior a new-age vibe. It's got a nice turbo-petrol engine that delivers pleasant performance. A firm ride does take a bit away from the experience, though. You could get the Syros turbo manual HTX within your budget. 

The Mahindra XUV 3XO is nicer to drive with a stronger turbo-petrol engine. Ride and handling are also well sorted. The XUV 3XO turbo-manual AX7 fits comfortably within your budget.  
 

The Mahindra XUV 3XO would be a good option for you. At your budget, you will get a variant with a level 2 ADAS suite, though this won't be too much use in small town areas and it's best out on the highways. However, we would recommend this as the car is well equipped with safety features like six airbags, and it has secured a full 5-star crash rating in the BNCAP tests. Also, since you like driving the 3XO is a car that you will enjoy being behind the wheel of.     

Your running of just 500km a month and mostly on the highway doesn’t justify an EV. It will take many years to recover the extra cost of buying an EV, and on the highway, the charging infrastructure is still a hit-and-miss. Also, it is not advisable to hang onto an EV for 10-15 years, as it depreciates badly and the battery stands to become obsolete. 

In view of this its better to stick to an ICE vehicle because your worries on the E20 and E27 are unfounded. All manufacturers have upgraded components and materials to be E27 compliant, though the regulations only call for E20 compliance. This is to future proof themselves and customers in case the ethanol blend goes up from the current E20 mix which it is unlikely to for next couple of years. In any case, E20 will be the base fuel for many years. So if you are looking at value, the Mahindra XUV 3XO is a good choice - dont worry about it being ICE. 

The Mahindra XUV 3XO is a solid upgrade from the Ford Figo, especially if space and comfort matter to you. Its punchy diesel engine, wide cabin and absorbent ride make it comfortable for five, while the 5-star crash test rating adds peace of mind.

The Kia Sonet, on the other hand, feels more premium inside and is easier to drive in the city thanks to its lighter controls. It also offers a larger boot and a smoother 6-speed torque converter automatic compared to the 3XO’s basic AMT, making it the better choice if you prefer an automatic.

Kia’s service experience and resale value are also likely to be stronger.