We recommend cars depending on people's specific needs. MG Hector is a spacious car and comes with a lot of features, and if someone is looking for those in a large SUV, we do recommend Hector. 

Hector has not received a full, ground-up generational change since its launch in 2019. Mg has updated it many times with facelifts, but to compete in the fast-changing segment, Hector would do better to get a full generation change. 

Hector's petrol and diesel engines are found to be thirsty units in the real world compared to their competitors. So if someone's priority is mileage, Hector falls low in their recommendation set. 

Of the two, the Mahindra XUV 7XO is the better pick. The XUV 7XO is packed with tech and is far nicer to drive than the MG Hector, too. Mahindra's engines and gearboxes are highlights, and the 7XO's updated suspension also gives it the edge in ride comfort. Importantly, the 7XO offers a better third-row experience than the Hector Plus. 

That said, the XUV 7XO is not the best 7-seater for the money. Especially in case the third row space and comfort are a deal breaker for you. The Tata Safari offers a more comfortable third row among petrol/diesel SUVs of the segment. 

If you are open to electric, the Mahindra XEV 9S is worth a look. While you could think of it as an all-electric version of the XUV 7XO, the 9S does boast of a better third row. The option to slide its middle row seats makes all the difference to balance second and third row space in the cabin.  

The Kia Carens Clavis is the ideal pick for your requirements. It's a well-packaged MPV that offers comfortable seating across all three rows. A one-touch operation for the middle row seat fold makes access to the last row easy. Also, there is ample movement built into the middle row to balance space for all passengers. 

The Clavis is also easy to drive and doesn't intimidate as some three-row SUVs can. From the Clavis line-up, the Turbo DCT HTX(O) is the one to buy.

Of the other three-row petrol-auto options, there's the Hyundai Alcazar, MG Hector Plus, Mahindra XUV 7XO and Tata Safari.

The most fun-to-drive SUVs in your budget are the 1.5-litre Volkswagen Taigun and Skoda Kushaq twins, which are very engaging thanks to their brilliant dynamics and a powerful, punchy engine. 

Both are due for a facelift, and the upgraded Kushaq is just around the corner and scheduled to launch on January 20th 2026. The Volkswagen Taigun facelift will come a month later. Both these SUVs will see some significant enhancements to the air conditioning and interiors. 

Top-end variants will come with rear massage seats, a first in the segment. However, one weakness is the rear seat space, which is relatively narrow and best for four. 

Therefore, if this is a deal-breaker for you, you could consider the Tata Sierra. It is fantastically spacious, has superb ride and handling and an all-new 1.5 petrol engine, which is smooth, punchy and fairly efficient too. 

The Sierra is not as engaging to drive as the Kushaq and Taigun, as it is heavier and has a relaxed power delivery. We would rule out the MG Hector in your case as it is too big, it's not a very engaging car to drive, and as you said, it guzzles fuel.
 

The Tata Sierra is an excellent option for you, keeping your big boot space requirements in mind. The Sierra boasts a boot up to 622 litres (up to the roof), which should serve your needs well. 

Moreover, it is a spacious car, and the Sierra Pure 1.5 Petrol MT variant that'll fit within your budget gets the basics like a touchscreen, electric mirror adjustment, keyless entry, rear AC vents, etc. 

Another option that you can consider for its expansive boot space is the MG Hector.