2 cars with filtered options

Since your priority is third row space, it would come down between the Maruti Suzuki XL6 and the Kia Carens Clavis. The Hyundai Alcazar does have a third row, but it isn't as roomy as the other two. 
The Kia Carens Clavis has the edge when it comes to features and equipment, a plush cabin with a premium feel and a more powerful engine.

However, the XL6 is an excellent value considering what it offers for the price. If you seek performance and features and don't mind paying extra, the Clavis is a very good choice.

However, if you can make do without the jazzy interior and want a predominantly spacious third row, the XL6 would be a good choice. 

Currently, there are two models that fit your requirements - the Maruti Suzuki Ertiga and the Kia Carens Clavis. Both have spacious cabins that are reasonably comfortable for seven passengers, and both come with naturally aspirated 1.5-litre petrol engines. 

The Ertiga, however, will be more fuel efficient and, being a Maruti car, it'll also come with a stress-free ownership experience. The Kia car, on the other hand, offers many more features, and it can even be had with either a 1.5-litre turbo-petrol or 1.5-litre diesel engine options.   

You should consider buying the Maruti Suzuki Victoris. It falls within your budget, and it's got an efficient, strong hybrid powertrain that's claimed to do 28.65kpl. 

The Victoris also comes packed with features like a panoramic sunroof, large touchscreen, ventilated front seats and more. What's nice is that the Maruti Victoris has also received a full, 5-star safety rating from Global NCAP as well as Bharat NCAP. 

In your budget, you can consider the Maruti Suzuki Celerio VXi or ZXi AMT based on the features you want. It is easy to drive with good seat height for easy ingress and egress, and being a Maruti Suzuki car, it should be reliable and easy to maintain, even with low running. Ride quality is good and should keep him comfortable on highway commutes.

A more premium choice is the Maruti Suzuki Ignis. The Delta AMT should just about fit your budget, and its smoother and more powerful 1.2 litre four cylinder engine makes it nicer to drive than the Celerio.

If you are open to a used car, you can explore Spinny.com, where you may find more premium options like the Swift or the Glanza within your budget.

That is quite a tall order to fit into your budget of Rs 10-11 lakh. However, given your requirements, we would recommend the Nissan Magnite or the Maruti Suzuki Fronx. 

Both compact SUVs give the option of a fuel-efficient naturally aspirated petrol engine with an AMT auto gearbox at a good price, or a more powerful turbo-petrol engine with an auto gearbox that's not as fuel-efficient, but much smoother. 

Both have robust suspension that should be capable both in the city as well as on the highway. That said, while both can fit 5, the back seat will be a tight squeeze for 3, but at this budget, almost every car would be. 

Here, the Nissan Magnite has the edge on space, and overall, it is more affordable and a better value, too. Hence, it would be our pick for you.

Looking at your requirements of reliability and fuel efficiency, along with a good safety rating, we would recommend you look at the Maruti Suzuki Dzire. 

It is a three-cylinder engine; however, this should not be something you should worry about as the unit has adequate performance, in fact, a very good low-speed response. 

The Dzire is a sedan, but it fits within the sub-4 meter footprint, and that, along with its light controls, will make it an easy drive for you.    

Given that your usage is relatively high and mainly on the highway, you should go for the Kia Sonet diesel MT. Its strong pulling power compared to the naturally aspirated petrol engines you have mentioned will allow for more effortless cruising and overtaking, and the fuel efficiency will be considerably better too. 

You should also consider the new Hyundai Venue, as it is a bit more modern and more spacious than the Sonet. As for the fuel economy of the petrol engines, it depends on your driving style and conditions. Since your driving is mainly on the highway, the larger, more powerful 1.5-litre petrol in the Maruti Suzuki Brezza would likely be more efficient on the whole, as it would be less strained at higher speeds than the Sonet's 1.2 petrol.