We would lean towards the Citroen C3X Shine with the 1.2 turbo engine and six-speed AT. It's a little above your budget but will suit your needs best as it is extremely comfortable, has a superb suspension and the best powertrain for the price. 

For highway driving, it is the best of all the options you have shortlisted because of the brilliant engine and dynamics. However, we have added that Citroen’s dealer network is not the best, and hence, after-sales service could be a worry. 

If you want to play safe, go for the Maruti Suzuki Fronx, it's well equipped, reliable and comes with low-cost maintenance. It’s just that for your budget, you will get the 1.2 petrol mated to an AMT, which is nowhere near as nice to drive as the C3X.
 

Since you need an extremely fuel-efficient automatic five-seater, we'd recommend you consider a Maruti Fronx/Toyota Urban Cruiser Taisor 1.2 Petrol AMT. Besides, the engine has adequate performance for your highway drives, and will be smooth for city use. 

Moreover, its high ground clearance will be handy on bad roads. These cars are likely to be quite reliable, so you can expect a trouble-free ownership experience.
 

Considering your running and if you are open to an EV, the MG Comet is a good option for your wife. It is extremely easy to drive, park, and live with thanks to its compact size. Even the top variant falls within your budget and comes well-loaded with features.

If it feels too small and you want something more substantial, the Maruti Suzuki Fronx AMT in the Delta Plus variant is a good fit. The 1.2 litre petrol engine is smooth and efficient, and the AMT works well for everyday use.

If you prefer a more premium automatic, the Hyundai i20 with the smooth CVT transmission is also a strong option and fits comfortably within your budget.

At the moment, there aren’t any hybrid cars in the Rs 10-12 lakh bracket. The most affordable ones you can buy right now start closer to Rs 20 lakh.

Maruti Suzuki plans to introduce a new line of more affordable hybrids, starting with the Fronx Hybrid, although it’s unlikely to arrive before 2027. Even then, it’s uncertain if it will fit within a Rs 12 lakh budget. 

When it comes to flex‑fuel vehicles, they only really make sense once India moves to higher ethanol blends. The current target is E20 (20% ethanol), and there’s no plan yet to exceed that. Cars designed to run on higher ethanol blends, such as E30 or higher, tend to be less fuel-efficient because ethanol contains less energy than petrol. 

That efficiency loss would only be worth accepting if high‑ethanol fuel were significantly cheaper but so far, there’s no sign of that happening.
 

If you are happy with the Ford Figo and it is running fine, you could hold on to it, however it will get progressively difficult to maintain it. Thus, if you can change it might be a good idea to do so now. 

Consider the Maruti Suzuki Fronx / Toyota Urban Cruiser Taisor. The car will feel similar in its fun-to-drive character to your Figo, and you could opt for either the turbo or the naturally aspirated engine. 

The 1.0 litre turbo will be more peppy and fun to drive but given that turbo's are very sensitive to driving style, you will likely see real world efficiency figures than quote. In this regard, the 1.2-litre naturally aspirated engine will be better, though at a lower performance level. 

Test drive the two and see which you prefer. 

The choice between an automatic and manual will really be down to your comfort levels. 

If you are not confident about driving a manual or have a lot of traffic to deal with, then an automatic would be better. In this case, pick the Maruti Suzuki Fronx AMT; the shifts will not be as smooth as a torque converter unit. But at least you won't have the hassle of changing gears yourself. 

If you can stretch your budget, opt for the 1.0 litre Turbo Fronx, which comes with a torque convertor automatic gearbox, or you can also opt for the Skoda Kylaq automatic, which also has a torque convertor and the lower variants would be a bit cheaper.   

Since you are a first-time car buyer and will go off-road occasionally, it makes sense to go for an SUV or a crossover, which has the double benefit of a high seating position. 

It also gives confidence to first-time buyers behind the wheel and a high ground clearance to tackle bad roads and speed breakers. You could consider the Maruti Suzuki Fronx 1.2 AMT, which has a spacious and comfortable cabin, is well equipped, rides well both on and off road and has key safety features