2023 Mahindra XUV700 review: Australian launch

The important part up front: The 2023 Mahindra XUV700 is an accomplished seven-seat SUV with surprisingly plush ride quality, an impressive feature list and spacious back seats – for a very sharp price.

Built in India, the XUV700 hopes to break Mahindra – the world’s largest tractor manufacturer – out of its current rural, agricultural image and into the passenger vehicle mainstream. Wheels recently drove it in Brisbane.

The XUV700 is the second new SUV launched in Australia by Mahindra in recent times (following the Scorpio), with the Indian brand planning more – and to make itself an “SUV brand”. The XUV700 replaces the XUV500 that launched in Australia in 2012.

Mahindra is also specific on how to pronounce the name: “XUV seven double-oh”.

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With its tusk-like lighting signature up front and “arrowhead” LED tail-lights, the XUV700 is the first vehicle to use Mahindra’s modernised new logo, which looks a bit like a metallic butterfly.

Mahindra has sold more than 100,000 XUV700s in India since its launch there in 2021. Australia will be the car’s fourth export market, with “plenty of stock” on offer. “Supply won’t be a constraint,” said Mahindra, meaning shorter wait times for a brand new car.

In India, the XUV700 is available with a 2.2-litre four-cylinder turbo-diesel, a five-seat configuration and all-wheel drive – all of which Mahindra said it was considering for future launch in the Australian market (which gets front-wheel drive, a turbo-petrol engine and seven seats.

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JUMP AHEAD

• How much is it, and what do you get?
• How do rivals compare on value?
• What's the Mahindra XUV700 like inside?
• What is it like to drive?
• How economical is it?
• How safe is it?
• Warranty and running costs
• Would you recommend it?
• Specifications

How much is it, and what do you get?

There are two XUV700 grades in Australia, the AX7 and the AX7L, respectively priced at $36,990 and $39,990 drive-away.

This is the “introductory pricing” which will increase by an unspecified amount after August 31.

Both grades are front-wheel drive and equipped with the same in-house-developed 149kW/380Nm 2.0-litre turbocharged four-cylinder petrol engine – mated to a six-speed torque converter automatic transmission from Aisin (a Toyota brand).

Standard highlights on the base AX7 include 18-inch wheels, a giant panoramic sunroof, two 10.25-inch digital displays, Apple CarPlay and Android Auto (both wired) and an electrically adjustable driver’s seat with two memory settings.

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There are no options at all – even all the paints, including the hero colour Electric Blue, are no-cost options.

By up-speccing to the AX7L, the notable additions are wireless phone charging, a 360-degree camera system, a knee airbag, a 12-speaker stereo (up from six in the AX7), telescopic steering wheel adjustment and an ability for the adaptive cruise to stop in traffic, then go again of its own accord.

Mahindra’s full active safety suite (as outlined below) is standard on both versions.

There are no options at all – even all the paint finishes, including the hero colour Electric Blue, are no-cost options.

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How do rivals compare on value?

Mahindra likes to compare its XUV700 to the seven-seat Mitsubishi Outlander LS (from $39,490) and five-seat Nissan X-Trail ST (from $36,750).

We reckon India's challenger brand still has a few years before it can play in the same league as these Japanese cars.

A somewhat fairer rival is probably the Chinese-made, seven-seat LDV D90 – a comparatively crude body-on-frame vehicle versus the Mahindra’s more advanced monocoque.

Priced from $37,990 drive-away in rear-wheel-drive guise, the LDV D90 uses a 160kW/350Nm 2.0-litre four-cylinder turbo-petrol, has a five-star ANCAP rating (which, issued in 2017, will expire in December 2024), 18-inch wheels and a five-year warranty – although it can’t match the XUV700’s standard dual screens and sunroof and isn’t as nice to drive.

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What's the Mahindra XUV700 like inside?

You can have your Mahindra XUV700 interior in any colour of trim you like… so long as it’s off-white. Mahindra said it is investigating a black interior for Australia.

It presents exceptionally well, however. You can tell the XUV700’s creators have thought about how to wow those who’ve wandered into a Mahindra showroom for the first time. Hit the key fob on the top-spec AX7L and the flush door handles pop out, an idea sort of ‘borrowed’ from brands like Jaguar. The idea is to make an unexpected first impression in the way a Mitsubishi Outlander won’t and, to be fair, it works.

Once you’re inside – having enjoyed the particularly strong new car smell – Mahindra’s next intentional move to woo you is the showpiece 1.3-metre long sunroof, standard on even the base car.

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While real leather is used on the steering wheel and shift knob, the rest of the interior is upholstered in a fake alternative.

With the blind fully open and the white interior, this is a very spacious-feeling, airy and light-filled cabin. Even if one that’s a bit conservatively, derivatively styled – a bit of original Mahindra design flair wouldn’t have gone astray.

Although real leather is used on the steering wheel and gear selector, the rest of the interior is upholstered in a fake alternative. Soft and lovely to touch, we would struggle to tell the difference.

The dual 10.25-inch screens also add a dash of technology and, for many people, will further seal the deal even before a test drive. Especially given Mahindra’s infotainment systems, while again feeling heavily inspired by other marques, is nice and responsive with good on-screen resolution.

(Curiously, Mahindra includes a lap timer in the infotainment system in case the urge to go to a track day in your XUV700 ever strikes.)

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Mercifully, Mahindra has stuck with physical buttons and dials for its air-conditioning.

It surely would have been tempting to save even more money by moving these into the screen (as many budget Chinese brands have done, and more than a few European marques).

It’s a pity then that on hot days (not unlike the one during our testing) the stop-start system switches the engine off long enough in traffic that the air-conditioning starts to lose its cool.

Only the AX7L comes with telescopically adjustable steering as well – something the base car could really use as, for some, the steering wheel might feel a bit far away.

The second row, on the brighter side, is very well done. The rear doors open wide while the rear bench is almost stadium-set, giving rear passengers a very open and bright view of the outside world – something also helped by the large rear windows.

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There’s plenty of knee-room and notable foot-room and – adding to the feeling of space – almost no transmission tunnel. There are two air vents, although you can’t adjust the rate of flow. There is a single USB-C outlet.

The third row is predictably tight; this tester is 174cm and wouldn’t want to be much taller (or have much longer femurs). Third-row access is reasonably simple thanks to the tumble-forward second row which is easy to operate even from the back – although it’s quite heavy and comes down with a hell of a thud, into a latch precisely where you might put a bare foot.

Somewhat less precariously, there are two air vents including fan speed control, two cup holders and an old-school 12-volt outlet (no third-row USB).

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The rear seat backrest, meanwhile, is a basic 60:40 split with no ski port.

Mahindra doesn’t provide a boot space figure, but estimated it to be around 700 litres with the third row folded. The boot itself is pretty big, although when recessed, the third-row seats make the floor a little high. The tailgate – manual on both variants – also hangs quite low, making it easy to knock your head if you’re tall.

The boot itself is also light on amenities – there’s no boot light, nor is there underfloor storage or a wet box. The second-row backrest, meanwhile, is a basic 60:40 split with no ski port.

A full-size steel spare wheel is provided and the Mahindra XUV700 can tow up to 1500kg braked or 750kg unbraked.

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What is it like to drive?

Very easy around town. You sit high in good old SUV fashion and twirl steering that is very light. Some other testers found it almost too light, like it’s not connected to anything at all.

All the controls feel otherwise nice, and the XUV700 is fairly eager from low in the revs thanks to its meaty, turbocharged 380Nm being available from just 1800rpm. The six-speed transmission is smooth and does the job.

The ride quality is a highlight. The front springs feel very soft, offering a very supple experience over bumps. The independent rear suspension feels somewhat firmer, but only compared to the front. The XUV700 is also quiet enough at highway speeds with minimal tyre noise.

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The lane-keep assist was also pleasingly well-sorted, subtly nudging the car back towards the centre of the lane in exactly the way you’d want.

We didn’t really get to push the XUV700’s dynamics on our very short drive, but will do so during a longer test.

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How economical is it?

Mahindra claims 8.3 litres per 100 kilometres according to ADR81/02 testing regulations (using the cheapest petrol option, 91 RON).

Our test vehicle was displaying 9.8L/100km in the trip computer during our short test route, although we’ll reserve judgement until we can do a longer test. There’s a 60-litre fuel tank.

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How safe is it?

The jury is out, although the XUV700 achieved five stars during Global New Car Assessment Program (Global NCAP) crash-testing in 2021.

Mahindra has not yet provided an XUV700 to the Australasian New Car Assessment Program (ANCAP) for crash testing. Local executives said Mahindra was speaking to ANCAP to get an understanding of requirements – and whether special engineering would be required.

On the active safety side, the XUV700 offers advanced autonomous emergency braking (AEB) working at interurban speeds up to 110km/h, although Mahindra couldn’t confirm whether it could also detect pedestrians or cyclists (like many other newer systems on the market).

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The video feed of the reversing camera could also be smoother.

There is lane keep assist, adaptive cruise control and a clever high beam that detects oncoming vehicles above 80km/h and automatically dips.

Both XUV700 grades get a standard reversing camera, although there are no reverse parking sensors, no reverse AEB and no rear-cross traffic alert. The video feed of the reversing camera could also be smoother.

Pinched directly from Hyundai, the XUV700 flashes up a live video of your blind spot in the digital instrument display while indicating – although it suffers a similar imperfect frame rate as the reversing camera feed. This is only available on the upper-spec AX7L.

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The AX7L also comes with the 360-degree, top-down parking camera view.

On the passive safety side, there are six airbags, and the curtain items extend the full length of the car, protecting even third-row passengers. You have to pay extra to get a knee airbag however, also only available on the AX7L.

The XUV700 does not have a driver attention monitor.

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How long is the warranty and what are the running costs like?

The Mahindra XUV700 comes with a seven-year / 150,000km warranty and seven years of complimentary roadside assistance.

Service intervals are every 12 months or 10,000km, whichever comes first. Mahindra is yet to release capped-price servicing costs.

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Would you recommend it?

The Mahindra XUV700 is very impressive for the price. Drive it on its own and it’s a surprisingly well-presented, well-sorted seven-seat SUV that works hard for the money.

We suspect if you drove it back-to-back with a Mitsubishi Outlander or Nissan X-Trail, the Mahindra wouldn’t feel quite as solid or polished. But that’s not to say it’s a bad car. And certainly, anybody upgrading from a 10-year-old Nissan or Mitsubishi will be blown away.

Build quality felt good, and you’ve got the security of a seven-year warranty – pretty much as good as it gets in the entire Australian market.

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If we were going to get picky, we would have liked to see Mahindra more confidently offer India’s take on the humble SUV.

The interior and exterior design bristle with thoughtful touches, although few we haven't seen before from other manufacturers.

Stylistically, the XUV700 is obviously intended to offend as few people as possible, creating a product with the personality of many other cars rolled into one, and yet somehow without a distinguishable character of its own. About as far as you get is the indicator chime, with is a bit jazzy in a Bollywood kind of way.

But if that’s the most criticism we can throw its way, it’s doing well.

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