Pramod Kumar Sharma
The Mahindra XUV 500 and Toyota Innova are both capable vehicles. The XUV offers slightly less third row space than the Innova. The last rows on both vehicles are however not suited for adults and long journeys.The XUV scores in terms of ground clearance but the Innova is more comfortable and is known for its reliability and excellent resale value. You can also consider the Renault Lodgy. The MPV is priced lower, is as feature loaded and offers good space as well as comfort. We also recommend you wait for the all-new Innova Crysta and then decide. Toyota will be launching it before May this year.
The Innova does fit your requirements well but for the price mentioned you will only be able to go in for the mid variant that will miss out on important features. The all-new Innova will be unveiled end of 2015 or early 2016. You should also consider the Renault Lodgy. It offers great comfort, space and has an eight-seater option as well. It is much more affordable too - the top RxZ variant comfortably undercuts your budget.