Toyota RAV4 vs Mahindra XUV700

What's the difference?

The Toyota RAV4, particularly in Cruiser Hybrid spec, is a sensible, comfortable family 2WD wagon with plenty of standard features onboard.

It's nice enough to drive on-road without ever being over-the-top dynamic and offers a sensible amount of practicality and functionality for the price.

It feels a tad underdone, especially as rivals in this section of the market are improving all the time, but if you're patient enough to wait for Toyota's supply to catch up with customer demand, the RAV4 Cruiser 2WD Hybrid might just be spot-on for you.

We love a car which subverts expectations, and for the most part, the XUV700 has managed to. It feels like the brand has leapt over a few steps when it comes to design, quality, and particularly drivability, which bodes well when you combine it with a bargain price, a good equipment list and solid packaging.

The question is: Does the Australian market have room for yet another value player in a space already so well occupied by Chinese newcomers? Only time will tell.

Beyond its distinctive RAV4 grille, 18-inch black gloss alloys and that rather striking Saturn Blue paint, this medium-sized SUV remains inoffensive enough.

For those of you who love measurements, the Toyota RAV4 Cruiser 2WD Hybrid is 4615mm long (with a 2690mm wheelbase), 1865mm wide, and 1690mm high. It has a listed kerb weight of 1700kg.

The XUV700 is a clean-sheet design on an all-new platform and it shows. There are still echoes of the past in this SUVs bodywork, with the raised rear haunches and traditional Mahindra-shaped grille, but it feels like it’s taken a massive leap into the 21st century this time around.

It has a strong modern flavour and presence on the road, which doesn’t feel more than a generation behind like previous Mahindra offerings. Gone are the awkward curves and frumpy edges of its predecessors, and instead we’re welcomed by a more refined face, nipped and tucked rear with sporty touches, tough haunches and a contemporary overall look.

Inside the most dramatic upgrades have been deployed, including the impressive digital suite, seemingly decent software with a quick, responsive, and customisable instrument cluster, a new more attractive steering wheel, and a much smoother flow and coherency to design which we haven’t seen before from the Indian giant.

There are only a handful of areas, like the dorky elongated shifter, some hard plastics in the doors and atop the shapely dash, and the manual handbrake in the base car to remind you of its bargain price-point and origins.

It’s nice these attributes unite for an uncontroversial and modern overall feel, and quality is feeling on-par, but it’s also hardly original.

The headlights and steering wheel look like they could be worn by any Renault, the tail-lights look like they belong on a Nissan, and the dual-screen dash and door-mounted electric seat controls are clearly meant to emulate Mercedes.

Actually, one for the switchgear nerds, the function stalks are from the SsangYong parts bin, a holdover from when Mahindra owned the Korean automaker. Still, if you’re going to take inspiration, I can think of worse places to take it from, and it’s frankly remarkable all these pieces of inspiration fall together so well.

It's a clean and comfortable cabin with a solid attempt at a premium look and feel, but it all feels a bit dated and under-done, even with leather accented interior trim and plenty of soft-touch surfaces.

There's the usual amount of RAV4 storage, which is more than adequate and, for charging your devices, there are three USB ports up front and two for the rear seat passengers.

The 10.5-inch touchscreen multimedia system and driver display are bright, clear and generally easy to use, although the media unit's operating system can at times be a bit of a labyrinth to work through.

Buttons, dials and grippy textured controls are easy to locate and operate.

All seats are okay without being great, but up front they are power-adjustable every which way, so there's that.

The rear seat is roomy enough in all directions for even those whose nickname is 'Stretch', 'Big Unit' or simply 'Tall Bastard'. The fold-down armrest has cupholders.

For kids, that seat row has three top-tether points and ISOFIX anchors in the outboard positions.

In terms of packability, the rear cargo area has a listed 580 litres of space, but with that rear seat stowed away there's a listed 1690 litres.

That area has a cargo blind, four tie-down points, a 12V socket and a removeable floor liner.

Low-cost options in the mid-size SUV space usually get a bunch of basic stuff wrong. Laggy, ugly software, for example, is prevalent in the MG HS, while clumsy switchgear takes away from the Haval H6, and a particularly awkward driving position is notable in the LDV D90.

Mahindra’s XUV700 does not fall into these traps. The front seat feels spacious and airy, the seating position is high but not unsettling, and the thing which took me aback the most is the way everything works.

It’s a little annoying the base car gets no telescopic adjust and misses out on a second bottle holder because of the manual handbrake, but other than this, the ergonomics in the cabin are solid. A centre dial, for example, can be switched from navigation controls to function as a volume dial if desired, and there are plenty of shortcut buttons for the multimedia and the dual-zone climate making it a breeze to adjust things on the move.

For storage there is a large bottle holder and map pocket in each door, a large bottle holder (two in the case of the AX7L) in the centre, a bay under the climate unit good for phones and wallets (it is a wireless charging pad in the AX7L), and there’s a deep armrest console box between the front occupants.

The second row is also airy and spacious, with a nearly flat floor making even the centre position seemingly suitable for an adult. Behind my own seating position I had plenty of space at 182cm tall, and there are a set of adjustable air vents plus a slot for a phone, a USB-C charging outlet, and large bottle holders in the doors.

The third row? It’s not bad, but I’ve sat in better. The left-hand side second-row seat folds up and rolls forward, making access better than some of its rivals, but behind the second row my knees are hard up against the seat in front, and my head is touching the roof. There’s decent amenity; a bottle holder on each side and an adjustable air vent with a fan controller, but this is a space best left for kids.

Mahindra doesn’t have an official boot capacity number to give us yet, but predicts it will be over 700 litres given the dimensions. With the third-row folded it looks cavernous, but with it deployed you’ll be lucky to get a day bag in behind.

For those interested in towing, the XUV700 can tow a 1500kg braked trailer (750kg unbraked) and there’s halfway decent ground clearance, at 196mm.

This car has its work cut out for it because the precedent for Mahindra SUVs in Australia isn’t great.

Back in 2018, this car’s predecessor, the XUV500 arrived to lacklustre reviews despite its similar market positioning. Back then, low-cost alone wasn’t enough to crack Australia’s heated mid-size SUV market, but now Mahindra is promising its all-new generation product is different and ready for a more global audience.

The pricing for the XUV700 is immediately impressive. Starting at $36,990 drive-away for the entry-point AX7, this car is now officially Australia’s cheapest seven-seat SUV, and this hasn’t come at the expense of standard equipment.

The price includes 18-inch alloy wheels, LED headlights, dual 10.25-inch screens for the multimedia and digital instruments, wired Apple CarPlay and Android Auto connectivity, synthetic leather interior trim, a six-way power adjustable driver’s seat, dual-zone climate control, push-start ignition, and even a panoramic sunroof.

Stepping up to the top-spec AX7L which commands a $3000 premium ($39,990 drive-away) adds some missing safety equipment like a blind spot view monitor, a more advanced adaptive cruise system (able to come to a full stop and re-start), as well as a 360-degree parking camera.

This version also scores electronically retracting door handles, a premium audio system, and a wireless phone charger.

Bizarrely, it also adds a seventh airbag for the driver’s knee and a telescopically adjustable steering column, and swaps out the manual lever handbrake for a digital switch.

These are things which would normally be expected as standard on many of its rivals, and it’s a shame to see safety items, particularly airbags, behind a paywall.

Regardless, the fact this car manages to significantly undercut established rivals like the entry-level seven-seat Nissan X-Trail, Mitsubishi Outlander, Honda CR-V and even the cut-price LDV D90, while providing similar equipment levels is pretty impressive.

There are no options for now bar several accessories. All five colour options are free, and Mahindra says there’s more to come in terms of spec levels and interior options if all goes well.

The Toyota RAV4 Cruiser 2WD hybrid has a 2.5-litre naturally aspirated petrol engine and electric motor set-up with a 1.6kWh (6.5Ah) nickel-metal hydride battery system.

Combined system output for power is 160kW and the torque output (combustion engine figure only) is 221Nm at 3600rpm.

This RAV4 has a continuously variable transmission (CVT) and it's pretty cluey when it comes to always being in the revs and ratios sweet spot.

It also has an EV mode for driving only on battery power to reduce fuel consumption and emissions, and several driving modes including 'Eco', 'Normal' and 'Sport'.

The drive settings are designed to produce optimal ride and handling via maximised engine performance and tuning, steering and throttle response, best suited to the terrain and conditions.

There’s just one engine for the XUV700 for now, a 2.0-litre turbocharged four-cylinder designed in-house at Mahindra.

Power outputs are comparatively impressive at 147kW/380Nm, especially when lined up against the old 2.5-litre non-turbo units powering some rivals.

The power is channelled to the front wheels via a six-speed Aisin-sourced traditional torque converter automatic. For a keen driver this is preferable to a CVT or a dual-clutch, so this sits well with us.

Overseas there is also the option of a 2.2-litre turbo-diesel (136kW/450Nm) with all-wheel drive, but this is yet to materialise for the Australian market.

The Toyota RAV4 Cruiser 2WD Hybrid has listed fuel consumption of 4.7L/100km (on a combined cycle).

I recorded 5.9L/100km on our test, but, as a mate so kindly pointed out, I drive like an old gentleman.

The RAV4 has a 55-litre fuel tank, so going by that on-test fuel-consumption figure, you could reasonably expect to get a driving range of about 930km out of a full tank.

Efficiency is officially rated at 8.3L/100km for both XUV700 grades, which is not bad but not great. Understandable for an SUV which weighs in excess of 1800kg powered by a 2.0-litre turbocharged engine.

We didn’t pull an as-tested fuel number this time around as we were hopping in and out of different vehicles, so standby for a more detailed analysis when we have one for a week-long follow-up test.

The fuel tank comes in at 60 litres, for a theoretical range of roughly 723km.

Hoping to hold out for a hybrid? Don’t. Mahindra isn’t working on one. Look to its incoming fully-electric BE sub-brand instead.

The RAV4 is very quiet* and generally rather nice to drive. So, as a daily driver, it's on the right side of impressive.

* Except when it's not, keep reading.

It has smooth acceleration and quickly settles into an easy groove at higher speeds.

Steering retains a welcome precision, visibility is good all around, and the RAV4 always feels settled on any surface.

It does ride and handle well on the blacktop and it's not too shabby on gravel and dirt surfaces, though it skips around on rougher, more irregular sections, due to its firm suspension and road-biased tyres.

The CVT is smooth and efficient in terms of being the optimal auto. It's not dynamic but it's certainly reliably consistent.

This hybrid switches between the engine and electric motor seamlessly and battery charge is easily regenerated through the vehicle's forward motion when little to no throttle is being used to maintain momentum (as in downhills or while otherwise coasting), or the vehicle is slowing to a stop.

NVH (noise, vibration and harshness) levels are mostly subdued except when you give the RAV4 some heavy right boot to spur it into immediate action. There's also some mild wind-rush noise around the big wing mirrors when you hit the open road.

As I've said before, the owners of city-focussed SUVs would be surprised by just how capable their vehicles are when driven sensibly, even the 2WDs.

You can undertake your own scaleable adventure in a 2WD vehicle but, of course, any trip off of a sealed surface in a 2WD will have to be very light-duty off-roading. So, nothing more difficult than a well-maintained dirt or gravel track surface in dry weather.

Towing capacity is 480kg – unbraked and braked – so you won't see a RAV4 skull-dragging a horse float any time soon.

It’s good. Surprised? Me too.

The XUV700 is good to drive in a fundamental way which is not the case for its Chinese rivals. There’s no impending feel of understeer or clumsy dynamics on show. The XUV700 is controlled and solid on the road, with a surprising level of refinement in the cabin.

Visibility is plentiful, and while power from the turbo engine isn’t quite as urgent as the figures initially suggest, it’s more than enough for a family commuter. Even the six-speed transmission is smooth and unobtrusive, unlike many dual-clutch or CVT options in this space. There isn’t even any noisy engine surging, with the unit here feeling refined and distant.

It’s almost ready to duke it out with more established rivals, but there are still flaws. The steering, for example, is very light. This will make it easy to control in low-speed parking situations, but it lacks any kind of feel or feedback at speed.

The ride is comfortable, perfect for its family intentions. Mahindra utilises a multi-chamber system here to achieve unusually competent response over a host of different surfaces, especially rare for a vehicle at this price or in this category. Everything comes at a cost, though, and the cost of this system is a fair bit of body roll in the corners, and a bouncy nature over undulations. 

Fundamentally, though, this car is solid. Nothing proved this more than the brand letting us drive its family SUV on a track at speed. What seems like a silly stunt is an important vote of confidence in the way this car handles, because it’s at track speeds and conditions where all the ugly characteristics will come to the fore.

While it’s certainly no track hero, what was most impressive is despite its rolly suspension and ultra-light steering, there were no major red flags about this car which stood out. It’s solid, and Mahindra knows it. I’d dare MG or GWM to do the same with the HS or H6.

What does all this mean for you? The car has safe road holding and confident dynamics, as well as the comfort for your family. It’s not as razor-sharp as the Japanese or Korean competition, but it’s better than all of its low-cost rivals.

At least on paper, the XUV700 does well. Standard active equipment includes auto emergency braking (a first for the brand, which we were given the opportunity to test on a dummy - it definitely works), lane keep assist with lane departure warning, adaptive cruise control, and traffic sign recognition.

Only the top-spec AX7L gets stop and go function for the adaptive cruise, a 360-degree parking camera suite, and a laggy low-framerate blind spot camera in place of an actual blind spot sensor system, the latter being the standard throughout the industry.

The side curtains extend all the way to the third row, although, oddly, the AX7L is the only one to get a seventh airbag (for the driver’s knee).

The verdict is out on this car’s actual crash performance until it secures an ANCAP rating, which it is yet to do.

The Toyota RAV4 Cruiser 2WD Hybrid has a five-year, unlimited-kilometre warranty. Get all your work done at a certified Toyota mechanic and you're in line of powertrain coverage under warranty for seven years.

Servicing is set at 12 month/15,000km intervals and capped price servicing keeps costs to $260 a pop for the first five years or 75,000km.

Seven years of warranty is a good start, and has Mahindra joining an increasingly large club of challenger brands which are following in the footsteps of Kia by offering above-average coverage in this department. Mahindra’s version only covers the first 150,000km of distance, but there’s seven-years of roadside assist, too.

At the time of writing, Mahindra was yet to land on service pricing. This could be the last piece of the puzzle for some buyers. The XUV700 needs to be serviced once every 12 months or 10,000km.