Hi JJ, looking at the requirements you have put down, for me you appear to be a practical buyer. Here is the availability list in petrol (excluding FIAT Palio):
Maruti Suzuki Wagon R (Options: LX, LXi, VXi )
Maruti Suzuki Zen Estilo (Options: Lx, LXi, VXi, VXi ABS)
Maruti Suzuki A-Star (Options: Lxi, VXi)
Hyundai Getz Prime 1.1 GLE
Hyundai i10 (Options: Era, D-Lite)
Hyundai Santro Xing (Options: Std, GL, GLS)
Chevrolet Spark (Options: Muzic 1.0 LS, 1.0 PS, 1.0 LT, 1.0 LS, 1.0 std )
Tata Indica Vista (Options: Terra 1.2 Safire, Aura 1.2 Safire , Aqua 1.2 Safire )
Tata Indica V2 Xeta BS III (Options: 1.2 GLS , 1.2 GLE, 1.2 GL)
You have one
Sedan in this price range: Tata Indigo CS (Options: GLS, GLE )
I agree to Vibhor that Wagon R is aged. However, it is a trusted and proven car, plus less maintenance cost and MSIL service makes it attractive. On the other hand Hyndai i10 is an excellent car too. It is one of the best cars in the class. I have not tried Spark yet. So I can not comment on that one. There are threads in TAI forum, discussing on Chevrole Spark and Chevrole's new offerings. You could check out that. Coming to TATA, Vista is a right candidate I think. If you are interested in Sedan, Indigo CS is a good pick. One of my friend in Cochin is using it and the feedback, so far is really positive. You will surely be impressed by the trunk, when you have to take your family for long a trip.
I think you should pick from - Wagon R, i10, Vista, Spark -. Test drive all of them, try to feel it, then decide
Best of luck!
PS: Please let us know your pick.