Peugeot 2008 vs Mahindra XUV700

What's the difference?

The Peugeot 2008 is a handsome and accomplished little SUV that’s fun to drive and has a cabin that feels a little bit special.

In reality the 2008 is too expensive and isn’t as practical as most of the mainstream compact SUVs.

This is the car you buy with your heart, not with your head.

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.

The Peugeot 2008 is a smooth operator with head-turning French flair, but the devil is in the detail.

It’s not just the 2008’s well proportioned dimensions or the healthy dollop of exterior black highlights that catch your eye, but Peugeot has added a range of design cues to symbolise the Lion on its badge.

The tail-lights have a 3D effect that make them look like cat’s claws and the daytime running lights on the front resemble a scratch mark. These pair perfectly with the lion head crest on the grille.

Look deeper and you notice the attention to detail.

The 2008's redesigned front grille's slates are colour matched to the car's body colour.

Dual exhaust pipes are finished in chrome, giving the impression of performance even if the car doesn’t deliver on it.

The GT variant gets a two-tone paint job with a black roof contrasting with the body's colour.

Inside there are plenty of high quality finishes. The centre console is festooned in gloss black and there is a lovely carbon-effect textured insert on the dash and doors. 

Some hard plastics below eye-level and on touch points such as where your knee might rub are less impressive. The rear seat loses some of the lustre of the front pew with tough plastics covering the back of the front seats and most of the doors.

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.

Step inside and there is no hiding the 2008’s diminutive proportions.

It’s 4300mm long, 1815mm wide and 1550mm high, which puts it closer in size to the mini Mazda CX-3 than the larger CX-30 it is more aligned with price-wise.

This all adds up to a snug fit in whichever row you sit.

There are a couple of cupholders in the centre console - a smaller one for a standard takeaway coffee and a larger one for drink bottles.

Slight storage bins in the door can hold a regular drink bottle but there isn’t much room for much else.

The wireless device charger is hidden away behind a compartment below the central screen that opens with a push and there are two USB-C ports up front and the rear seats score a USB-C and A connection.

Rear seat passengers do without a dedicated aircon vent, unfortunately.

There is an issue with Peugeot’s i-Cockpit steering wheel and digital driver display, too.

If you like to sit low the chances are the steering wheel will cut off your view of the bottom part of the display. If you prefer to have the seat jacked up, you’ll have better vision of the readouts.

There are piano key-like physical controls for simple climate functions such as the de-mister and auto climate settings. More complex functions are done via the 10-inch central multimedia screen.

The boot is a decent size at 434L and can easily handle a weekly grocery shop or a few overnight bags.

There is only a space saver spare wheel, but this car is aimed at city driving where it is easier to source a replacement tyre.

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.

Lurking beneath the bonnet is a little three-cylinder 1.2-litre turbo-petrol engine that makes 96kW and 230Nm. That’s a decent amount of grunt from the little unit, but again you can get more oomph for less from mainstream rivals.

It is paired to an eight-speed automatic transmission that drives the front wheels.

There is no hybrid help, either.

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.

Stiff emissions regulations in Europe mean these little turbocharged petrol engines have a fair bit of self control on the drink.

Peugeot claims the 2008 uses 5.4L/100km on the combined cycle. We used slightly more than this but spent most of the time in the cut and thrust of city traffic where cars use more fuel.

You’ll need to budget for pricier premium unleaded petrol, too.

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.

On the road the 2008 is a bit temperamental.

Most European cars are fitted with stiffer suspension than the cosseting springs found in Japanese machines.

This means you’ll feel bumps and road imperfections through your seat more than other SUVs. It has particular problems ironing out consistent smaller bumps, which can unsettle it and lead the 2008 to skip across them.

The counterbalance to that is a more dynamic drive experience, with the 2008 exerting excellent body control through the bends as it is held in line by the stiffer set-up.

Pair this with sharp, direct and well-weighted steering and it's a fun little SUV to take on a twisting country back road.

Three cylinders might not sound like a lot, but in the real world this is all the 2008 needs.

Its 96kW and 230Nm won’t set the world on fire but the torque is accessed from just 1750rpm, which endows the 2008 with some punch off the mark and it feels zippy when navigating the daily commute.

Don’t confuse that for outright speed, though, the 2008 completes the benchmark 0-100km/h dash in 9.3 seconds.

The transmission is fine when you are accelerating or cruising at motorway speeds, where it uses its many ratios to keep the engine humming along in its sweet spot. There are paddle shifters if you want more control.

In stop-start traffic it isn’t as an accomplished performer. It can struggle to find the right ratio and this leads to a jerky movement reminiscent of dual-clutch autos.

The cabin is well insulated with the outside world kept mostly at bay, but you’ll hear the three cylinder’s charming little rumble when you put your foot down.

Parking is a cinch thanks to its petite proportions and the 2008 has no issues navigating tight city streets or underground car parks.

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.

Peugeot covers the 2008 with a five year/unlimited km warranty, which is the standard coverage today.

The French brand offers a range of prepaid servicing packs that’ll save you a handy amount compared to pay-as-you-go maintenance.

A five-year plan is the best value, costing $1700 for five scheduled visits every 12 months or 15,000km. That’s $638 cheaper than the pay-as-you-go servicing.

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.