The most VFM car in that bracket would be the Elantra, with good space and good power. Your brother could also consider the Fiesta 1.6 which would give you less power and less space at a higher price, but may return better fuel averages.
I've never been a fan of the Honda City in its new guise, but then its to each his own....
dude i hav an elantra myself...now its cost has gone down 2 6.7lacs..its much more spacious than optra and city as it is in diff segment...you will lose out on mileage as it gives only bout 10-11per km..but then again u get more power and more spacious car..gr8 handlin and response