Mahindra XUV700 VS Volkswagen Tiguan
Mahindra XUV700
Likes
- Well equipped and well priced
- Easy third-row access from the kerb side
- Dual-screen set up is a treat
Dislikes
- Cheaper-feeling cabin the further back you sit
- Driving quirks take some getting used to
- Lane Keep Assist annoying on the freeway
Volkswagen Tiguan
Likes
- Fun to drive
- Big design and tech upgrade
- Practical, spacious interior
Dislikes
- No new hybrid powertrains (yet)
- Base price will go up
- Touch-based climate
Summary
Mahindra XUV700
I know you’re hearing a lot about the new Chinese brands coming to Australia, but why isn’t anyone talking about India?
I mean sure, Mahindra isn’t new to the country, but you can’t deny it has undergone a pretty serious glow-up, with the brand determined to become a fully fledged player in our new-car scene.
Leading the charge is the XUV700, with this new feature-packed Black Edition taking the fight to Chinese brands like Chery.
It has sharp styling, seven seats, plenty of tech and safety and a price tag of less than $44K, drive-away.
So, does it deserve a place on your consideration list?
Read more about
- The cheap, tough off-roader Australia needs? Meet the 2025 Suzuki Jimny rivalling Mahindra Thar Roxx five-door ladder frame SUV
- Mahindra XUV700 AX7L vs Chery Tiggo 8 Pro Max Elite 2025 comparison review
- Are more Indian-made cars coming to Australia beyond the likes of the Mahindra XUV700 and Scorpio SUV? Thanks to stricter emissions and safety regulations it might happen | Analysis
| Safety rating | — |
|---|---|
| Engine Type | 2.0L |
| Fuel Type | Petrol |
| Fuel Efficiency | 8.3L/100km |
| Seating | 7 seats |
Volkswagen Tiguan
Without a doubt, this is Volkswagen’s most important new vehicle.
Roughly eight million Tiguan mid-size SUVs have been sold since the nameplate came into existence in 2007, and the one we’re looking at for this review is the first new-from-the-ground-up version in eight years.
While it might look familiar from the outside, don’t be fooled. This third generation car is significantly different inside and underneath with upgrades the brand will need for it to stay relevant against an increasing array of hybrid traditional rivals and newcomers from China.
Does the 2025 Tiguan have what it takes to be your next family hauler? Stick with us as we find out.
Read more about
- Every new Volkswagen electric car, SUV and passenger car: VW kicks off new model offensive with ID.4, ID.5, ID.Buzz, Golf facelift, next-gen Tiguan and Multivan
- Sporty SUV has price slashed by $7000: 2024 Volkswagen T-Roc R and Amarok score drive-away offers to tempt Golf GTI, Hyundai i30 N and Ford Ranger owners away
- New cut-price electric car spied testing in heavy camouflage: 2025 Volkswagen ID.2 edges spotted in elaborate ID.3 disguise as it edges closer to taking on the BYD Dolphin, MG4 and Hyundai Inster: Report
| Safety rating | — |
|---|---|
| Engine Type | 1.4L |
| Fuel Type | — |
| Fuel Efficiency | —L/100km |
| Seating | 5 seats |
Verdict
Mahindra XUV7007.1/10
This is credible seven-seat motoring from Mahindra. The XUV700 has a couple of engineering quirks I'd like to see ironed out, but this SUV feels as though it deserves a place among Australia's affordable SUV offerings.
Volkswagen Tiguan7.9/10
It's a hard to deliver a definitive verdict yet, because we’re still some way out from the Tiguan’s local arrival.
Expect a pricier mid-size SUV, but one which leans into its best traits as a semi-premium option, with a stellar cabin and a significant tech upgrade. What sets it apart in such a crowded segment is its ability to appeal to the keen driver, although it’s a shame Australia will miss out on some of the more ambitious and modern powertrain options available overseas, at least initially.
For now though, consider us impressed.
Tune back in in the second quarter of 2025 for all the details on the Tiguan’s local launch and pricing.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
Design
Mahindra XUV700
This Mahindra is kind of dark and mysterious. Which is another way of saying it's literally painted black and almost nobody I asked had any idea what the hell it was.
That's the curse of a brand that’s still trying to make a mainstream name for itself, I guess, with Mahindra having a long road ahead of it before its gets to a level where its vehicles are instantly recognisable.
Anyway, the blacked-out grille treatment works, as does the very modern LED light array, and while not what you might describe as a boundary-pushing design, it's all inoffensive.
But it’s inside where things get interesting. Honestly, the way technology has exploded into cheaper offerings never ceases to amaze me. It wasn’t that long ago that, to be greeted by a big twin-screen set-up like the one in this Mahindra, you’d need to spring for a Mercedes-Benz.
Which is interesting, because if you've ever sat in a vehicle from the German giant, you'll recognise the XUV700's electric seat controller, with the seat-shaped design seemingly lifted straight from Benz.
I'd describe the cabin feel as semi-premium. The screens are lovely, the seats are comfortable, and the sunroof is massive, but some of the trim elements feel a little cheap and flimsy under the touch, and the use of those materials only increases as you move back through the seating rows.
Volkswagen Tiguan
There’s a lot of familiarity with this new Tiguan. It doesn’t stray far from the sturdy, boxy, but pragmatic shape of the current car, at least at a distance.
Up closer, though, it’s clear there are some significant changes this time around. The previous car’s hard and angular character lines have been replaced by curvy finishes over the top of the wheel arches, paired with heavier contours down the doors and across the nose.
The face has dumped the previous chrome highlights, moving the grille lower and replacing the horizontal strips which used to sit behind the VW badge with a solid plastic bar (incorporating an LED light) running across the top.
The grille has been moved lower, and chrome has largely been replaced with gloss black and matt silver finishes. While the outgoing car was attractive in a relatively conservative way this new Tiguan makes more of a statement.
Round the back, expect a similar contemporary translucent plastic light-bar treatment to marry the rear two light fittings, with the VW badge taking pride of place alongside the TIGUAN typeface, as is the current trend.
Design elements carried over in the rear three-quarter include the shape of the rear side windows, the tough extruded bumper and the little roof-mounted spoiler. Trendy aerodynamically-styled wheel choices round out its modern appeal.
Perhaps the strangest thing about this design is how it somehow manages to make the Tiguan look smaller where most next-gen designs make new cars look much larger than their predecessors. There’s something subtle about it.
Inside is a radical departure from the now significantly dated outgoing vehicle. The somewhat drab greyscale dash, which was also strangely upright, has been replaced by something much more intriguing.
A huge piano black panel defines the character line of the dash, housing the air vents, dashboard, and new ambient lighting, sitting behind the enormous pride-of-place 15-inch media screen.
VW clearly heard the audience and for this car has put a major focus on tech. The new software to match looks much better, the screen is sharp and fast, and as usual the brand’s digital dash is easily one of the best on the market.
Swapping out old switchgear has also allowed for a more contemporary, pared-back centre console with the nicely-designed steering wheel carrying across. EV-like controls from the ID series take their place on the steering column.
This is not a car you can judge from several metres away. This is a car that's been well and truly launched into the 2020s.
Practicality
Mahindra XUV700
There are seven seaters, and there are real seven seaters, with the latter offering a true third row in terms of space and comfort. So where does the Mahindra fit?
At 4695mm in length, 1890mm in width and 1755mm in height, this Black Edition is a decent size for a mid-size SUV, and so you’d describe the space in the third row as big enough, but not for full-grown adults marooned back there for longer spells.
To enter, it's a lever system that makes climbing in easy, with the second row folding up and then right out of the way so you can just walk in.
Space is tight for adults, though. I'm 175cm and my head was touching the roof, though I did have enough leg and toe room, and I was impressed by the fan controls and power sources (though I was less impressed by the sea of hard and scratchy plastics back there).
Step forward a row and the space is ample for just about anyone, and there are more vents, bottle holders and charging ports, too.
Boot space swells or shrinks depending on how many people are on board, of course. Mahindra doesn't have an offical boot-space figure for the XUV700, but says you will get "in excess of 700 litres" with the second row folded flat. With all three rows in place, things are tight, and you're looking at a couple of backpack-sized bags only.
Volkswagen Tiguan
The previous Tiguan was always notable for how spacious its cabin was, and for the most part that pragmatic approach continues.
The re-designed seats proved comfortable over the significant amount of time we spend behind the wheel traversing central Germany, and while it feels a little smaller inside due to the much busier design of the dash, there’s plenty of room for even tall adults given the cabin's height and width.
As usual with Tiguan, it’s easy to find a comfortable and sporty seating position, and the touchpoints are all excellent with much less hard plastic in the doors and centre console.
Each door offers an enormous pocket and bottle holder, and the new car gets a two-tiered shelf design in the centre console, housing a wireless charger below.
A single multi-function dial can control either audio volume or drive mode with a quick press, and without additional switchgear. There is a versatile set of bottle holders and a centre console armrest box behind.
The huge screen is oriented towards the driver. In the pictures it looks like too much, but it’s somehow low enough and the software largely has clever shortcuts to minimise distraction.
The most unfortunate feature of the screen, though, is the requirement to control the climate via touch sliders or a screen-based menu.
If only the brand had committed to giving us two more dials to control the climate zones or fan speed as appear in its Skoda relations. Still, it’s a significant step-up from the outgoing car.
The back seat offers heaps of room for myself, at 182cm tall, behind my own driving position. The generous seat claddings continue (as usual for a VW), with adjustable air vents, a rear climate zone and USB-C ports offered on the back of the console for rear passengers.
Lovely soft trims continue in the doors, and there are a set of three pockets on the back of each front seat, good for phones, tablets, or whatever you can think of.
Boot space measures in at an enormous 652 litres, proving VW found a significant amount of space somewhere in this new design.
Need more? The second row is on rails, so if you’re not using it, or you’re using it for kids who don’t need the legroom, you can boost the load space even further.
Price and features
Mahindra XUV700
First up, the price. The XUV700 Black Edition arrives at $43,990, drive-away, which puts it on a collision course with the Chery Tiggo 8 Pro Max Elite. It also puts it in the same realm as an entry-level Nissan X-Trail.
It’s also a fair chunk more than the cheapest XUV700, the AX7, which is currently $36,990, drive away.
But Mahindra is promising kit, and lots of it. Outside, the Black Edition scores black paint, a black grille and black 18-inch alloy wheels. Inside, there are black synthetic leather seats and a generally blacked-out design theme.
On the tech front, there are dual 10.25-inch screens, one for the driver and one to handle multimedia, and there’s wireless Apple CarPlay and Android Auto. A 12-speaker stereo provides the soundtrack, and there’s a wireless charge pad, too.
Dual-zone climate and LED lighting also appear on the standard features list, while the huge glass roof has an electric sun shade, which makes it very liveable in an Aussie summer.
Interestingly, it comes with front-seat cooling, but not heating, with the latter unlikely to ever be necessary in Mahindra's home market of India.
Volkswagen Tiguan
Australian deliveries of the new-generation Tiguan were still a while away at the time of writing, so we don’t have precise pricing and specifications to share just yet. However, the brand’s Australian division tells us to expect a similar grade walk to the outgoing car.
This will likely mean three key variants tied to three drivetrain options. We know for now the incoming base version will retain the same 110TSI engine, but will take a significant hike in standard equipment, while the next two variants up will use upgraded engines, a mid-spec 150TSI and a top-spec 195TSI.
The bad news is Volkswagen says it will be fair to expect a price-hike on base versions, what we understand is “closer to the $50K mark”, while the outgoing car starts from $43,990, before on-road costs.
The good news is the standard equipment is “more in-line with what the VW customer expects” according to the brand, with the main problem not being price, but apparently buyers wanting things like standard leather seats and upgraded cabin tech with the more basic engine.
Next up, the 150TSI 2.0-litre all-wheel drive will replace the outgoing 132TSI, and at the top of the range, the most important R-Line grade (which VW sells the highest proportion of) will also get a significant boost, not only with the 195TSI engine (up from the current 162TSI), but also new equipment.
Across its grades, the new Tiguan will have access to new-generation matrix LED headlights, large alloy wheel choices, and a 15-inch multimedia screen with wireless Apple CarPlay and Android Auto.
There is also a completely overhauled software suite, with a new version of the VW's renowned digital dash cluster, and you can expect impressive spec highlights from the current vehicle, like tri-zone climate control, to continue over.
And this third-generation car also scores completely re-designed seats, revised ambient lighting, a new head-up display and extended soft-touch materials throughout the cabin to solidify its semi-premium market positioning.
Stay tuned closer to the new Tiguan’s arrival in Australia in the second quarter of 2025 for full local pricing and specs. That said, the cars we drove for this review were largely representative of what we might see land on our shores.
Under the bonnet
Mahindra XUV700
The Mahindra is powered by the almost comically named 'mStallion' engine, which is a 2.0-litre turbo-petrol producing 149KW and 380Nm and paired with a six-speed auto and front-wheel drive.
I don’t have an offical 0-100km/h time, but safe to say you won’t be turning up to a Fast and Furious illegal race meet in the Black Edition.
It's a very capable engine and transmission combination, but it loses points here due to the surging nature of the power delivery, which very frequently causes the front tyres to break traction.
Volkswagen Tiguan
In some ways, I don’t envy our European friends, who can choose from a whopping eight different drivetrain permutations in the new Tiguan range.
However, again there’s good and bad news for the Australian market.
The bad news is we won’t see the new and more efficient 1.5-litre mild-hybrid engine option which is the base version (and one of the cars we drove) in Germany.
We also won’t see the surprisingly finely-tuned diesel versions, and we also won’t see the great new plug-in hybrid version, at least not at launch.
With this out of the way, what we can expect is a familiar line-up. The 1.4-litre turbocharged four-cylinder engine (110TSI) will carry over from the outgoing vehicle, producing 110kW/250Nm, a new mid-spec engine, producing 150kW/320Nm, and a new top-spec engine (dropped out of the Golf GTI, no less) producing 195kW/400Nm.
As usual, expect all three options to be mated to a seven-speed dual-clutch automatic transmission.
It's a shame the local division isn’t ambitious enough to launch with the next-gen plug-in hybrid version, which pairs the new 1.5-litre four-cylinder engine with a big 25kWh battery for an estimated 100km electric driving range.
It also brings with it robust charging specs, like an 11kW AC inverter (for a slow charge time of two hours on a compatible charger) and even the ability to charge on DC at 50kW (for a fast-charge time in half an hour).
Our experience in a German-market example proves one of the other benefits of this powertrain, which is a fuel-efficient hybrid mode even when the battery is drained.
Perhaps it’s a story of petitioning your dealer for one if you want it. No doubt the brand will be listening to on-the-ground feedback post-launch.
Efficiency
Mahindra XUV700
Mahindra says the XUV700 sips 8.3L/100km on the combined (urnan/extra-urban) cycle, which – when paired with the 60-litre tank – should see you able to travel in excess of 700km on a single tank.
And happily, when it does come time to top up, you can reach for the cheaper 91RON petrol pump.
We covered in excess of 300km, and the Mahindra's in-car readout registered an average of 10.2L/100km.
Volkswagen Tiguan
Given the engines will be familiar don't expect any radical changes when it comes to fuel consumption.
We don’t have official WLTP-certified figures yet because the 1.4-litre 110TSI and 2.0-litre 150TSI engines aren’t even in production in the new body yet, but it's fair to assume they won't stray far from the 7.7L/100km of the current 110TSI, up to 8.5L/100km for the current 162TSI R-Line.
For those wondering, the difference between the carryover 110 and the new one in Europe, it’s about 0.9L/100km according to overseas figures (with the new 1.5-litre MHEV engine consuming 6.8L/100km).
Even better news is the power boosted 195kW engine has the same fuel consumption as the outgoing 162TSI.
Meanwhile, the 1.5-litre eHybrid (PHEV) version we’ll miss out on has claimed fuel consumption of just 0.5L/100km.
As usual, these turbocharged Volkswagen engines will require a minimum of 95RON premium unleaded fuel.
Driving
Mahindra XUV700
There are two sides to the Mahindra XUV70O. The first is its comfortable, compliant, easy-breezy side, one with which, should you be gentle with the Black Edition, you'll find it's happy to be gentle back.
We covered some 300km in the Mahindra, from the city to the freeway to country roads, and the Black Edition proved a solid performer in facing everything we threw it at.
The cabin is quiet enough, blocking out the worst of the road and tyre noise, and the steering, while very light and flimsy feeling, proved responsive and confidence-inspiring enough, too.
The engine and transmission gel nicely at speed, and while the XUV700 won't be winning too many street races, the power on offer matches the vehicle nicely, and it doesn't feel underdone.
Even the safety systems are unobtrusive enough, with only the lane keep system proving annoying on the freeway, as it occasionally lightly fought back against steering inputs.
So, a six out of 10? I've marked the Mahindra down because, for mine, the power delivery and traction do not play well together, with the Black Edition only too happy to break front traction, and break it often, should you feed on too much throttle when turning from a standing start, or even in a straight line if you're pointed uphill.
Not helping the traction is the lumpy power delivery, where you get little when you first plant your foot, then a whole lot all at once.
That part of the otherwise positive drive experience made me mark it down here.
Volkswagen Tiguan
The Tiguan has always been a stand-out drive in the segment (which VW says underpins the high-spec R-Line version's popularity in Australia) and the improvements for this new-generation car lean even further into its on-road prowess.
Significant revisions as part of the new Tiguan’s upgraded MQB Evo platform include improved chassis rigidity and all-new suspension, which has an immediate and obvious effect as soon as you hop behind the wheel.
We were able to sample a 1.5-litre MHEV (an engine we won’t get, but in a trim level indicative of 'our' base car) as well as a 2.0-litre 150TDI diesel all-wheel drive (as a stand-in for the not-yet-in production 195TSI model) and both stand well above the segment in terms of handling and straight-up fun (at least for a mid-size SUV).
Don’t expect the kind of doughy ride and compliant steering of rivals, instead prepare yourself for what feels like a scaled-up Golf.
The third-generation Tiguan is defined by accurate, engaging steering, punchy and reactive engines, a sandpapered-smooth response from the dual-clutch transmissions, even at low speed, and (particularly for the front-wheel drive) an SUV which feels light on its feet.
This all makes for a mid-size SUV which, if anything, encourages you to push harder on a bit of curvy tarmac. Sure it doesn’t have the nearly EV-like smoothness of its hybrid rivals, but this is supplanted by serious fun to be had, which is extremely rare for this segment.
In our experience, the new ride is springy and reactive, although it was hard to gauge how the new Tiguan might feel in Australia due the high quality of German roads which don’t have the imperfections which riddle the surface of Australian tarmac.
It does feel a bit more locked down, but the previous Tiguan had an outstanding ride considering its more sporty intent, so I wouldn’t be surprised to see this continue.
Both turbo engine options roar to life when pushed with a pleasing tone, and as usual the dual-clutch autos are lightning fast at shifting and provide a lot more feedback and engagement compared to the usual dull CVT popular on rival mid-sizers.
The one thing which takes away from the experience is the need to interact with the climate controls via touch interface, a bit annoying and potentially distracting on the go.
On the flip side, the active safety equipment (particularly lane keep assist) is thankfully not anywhere near as overbearing as it is in some of this car’s rivals, solidifying the Tiguan’s position as a robust option for a keen driver.
Safety
Mahindra XUV700
The Mahindra doesn’t yet carry an ANCAP safety rating, but it comes with all the stuff needed to perform strongly, on paper at least, in crash testing.
That includes seven airbags, adaptive cruise control, 'Forward Collision Warning' (with AEB), lane departure warning and lane keep assist.
Keep an eye on that reversing camera, though. For mine it’s a little laggy, which means things can sneak up on you when reversing.
The XUV700 does wear a five-star Global NCAP safety rating but hasn't been assessed by ANCAP.
Volkswagen Tiguan
The new-generation Tiguan was recently awarded a maximum five-star Euro NCAP safety rating and has significantly increased its array of equipment.
Even the base Tiguan in Europe gets auto emergency braking with vulnerable user protection, lane keep assist, and blind spot monitoring with rear cross traffic alert.
There is also now front cross-traffic alert, a more thorough driver attention monitoring system, traffic sign recognition, and a safe exit warning system, alongside the usual array of stability, traction, and brake aids.
Airbag coverage has also been expanded to include a centre airbag up front, and full side airbags to join the usual curtain set.
Tune back in when the Tiguan launches in Australia to see if its maximum European rating carries across to ANCAP.
Ownership
Mahindra XUV700
Mahindra offers a seven-year, 150,000km warranty, with seven years of roadside assistance. We like the years, but we’d like to see the kays become unlimited to match brands like Kia.
You’ll need a free service at 1500km, then your first real check up at 10,000km, then its 12 months or 15,000km after that.
Capped-price servicing means you’ll pay $1781 for the first five services, but that includes the free one, so it's more like four trips to the dealerships for an average cost of $445 per workshop visit.
Volkswagen Tiguan
As of right now, Volkswagen offers a five year, unlimited kilometre warranty with a year of roadside assist, and it would be a shock not to see the usual three- or five-year pre-paid service packages when it launches in Australia.
On the current car, these amount to about $580 annually (for a 2.0-litre 162TSI R-Line) which is on the premium end for the mainstream SUV segment.
Expect the same service interval as the current car, too, set at 12 months or 15,000km. Check back at local launch time for full details.