Skoda Octavia vs Mahindra XUV700

What's the difference?

Is the Octavia SportLine your kind of automotive quiet achiever? It’s well-equipped and keenly priced with sleek yet understated looks, top-notch safety and a compelling ownership package.

It’s also fuel-efficient for its size and a refined, enjoyable drive. Before you go down that well-trodden mid-size SUV path I’d suggest adding this Skoda - Liftback or Wagon - to your new car short-list. 

Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.

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 Skoda Octavia is a crisp, contemporary design combining firm character lines and carefully sculpted larger surfaces with a hint of the brand’s VW Group ownership peeking through here and there. 

And it’s efficient aerodynamically with a drag coefficient (Cd) of 0.259 for the Liftback and 0.287 for the Wagon.

The broad black grille is uniquely Skoda although the rear treatment is closer to generic premium Euro. Swap out the Skoda badging for four rings or a blue, black and white roundel and no one would bat an eyelid.

But the SportLine stands apart thanks to a gloss-black finish on the grille, mirror covers, rear spoiler on the Liftback and roof rails on the Wagon.

On top of that a rear diffuser and front spoiler have been added, the window surrounds are matt black and dual exhaust tips finish off the rear end.

The interior is dominated by a handsome multi-layer dash design with a 10-inch multimedia touchscreen in the centre and a 10.25-inch ‘Virtual Cockpit’ instrument display facing the driver.

The grippy ‘leather-appointed’, flat-bottom steering wheel has shift paddles lurking behind the rim, there are sporty alloy covers on the pedals and the roof lining is black.

The cloth ‘Sports Comfort’ seats look and feel great, the materials used are high quality and the Octavia shares its umbrella-in-the-door trick with Rolls-Royce, although it must be said, the latter provides two.

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.

At a fraction under 4.7m long, just over 1.8m wide and close to 1.5m tall, with a close to 2.7m wheelbase the Octavia SportLine Liftback and Wagon are at the upper end of the mid-size category.

At 183cm I’ve got plenty of breathing room in the front, the low-level dash helping to deliver a spacious feel.

For storage, there’s a generous area under an extendable, height-adjustable armrest between the seats, twin cupholders in the centre console, bins in the doors with enough room for large bottles and a decent cooled glove box. There’s also Skoda’s signature lined rubbish bin in the driver’s door.

In the back, sitting behind the driver’s seat, set to my position, I’ve got plenty of room for my feet, legs and head as well as enough shoulder room for three full-size adults on cozy, medium length journeys.

Adjustable ventilation is welcome and storage options include map pockets on the front seat backs, big door bins, oddments storage under the air outlets and a pair of cupholders in the fold-down centre armrest.

Connectivity and power runs to two USB-C outlets, a 12-volt socket and a wireless charging pad up front with a second 12V in the boot. No USBs or 12-volt for back-seaters, which is a miss.

Speaking of the boot, with all seats up the Liftback offers a competitive 600 litres of storage space, expanding to 1555L with the 40/20/40 split rear seat folded. Those numbers grow to 640 and 1700L in the wagon. Plus, there’s a rear seat ‘ski-port’ style door in both.

A space-saver spare sits under the floor, the tailgate is power-operated and for those keen on towing the Octavia is rated up to a 1.5-tonne braked trailer with trailer stability control standard.

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.

A 1.4-litre all-alloy, direct-injected, turbo-petrol four-cylinder engine sits under the Skoda Octavia’s bonnet, sending 110kW/250Nm to the front wheels via an eight-speed automatic transmission with ‘Tiptronic’ sequential manual shifting accessible via wheel-mounted paddles.

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.

Skoda’s official combined cycle fuel economy number for the Octavia SportLine is 5.7L/100km for the Liftback and 5.9L per hundred for the Wagon, the 1.4-litre turbo four emitting 180g/km of CO2 in the process.

On the launch drive program covering urban, B-road and freeway running along the coast south of Sydney, NSW we recorded an average of 6.4L/100km in the Liftback. Not too shabby for a non-hybrid in this class.

Worth noting the minimum fuel requirement is the pricier 95 RON premium unleaded, though.  

You’ll need 45 litres of it to fill the tank which translates to a theoretical range of around 790km… roughly 700km using our real-world number.

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.

Skoda says the Octavia SportLine will accelerate from 0-100km/h in 9.0 seconds, which isn’t ferociously fast but far from sluggish at the same time, especially for a roughly 1.3-tonne vehicle. And the fact peak torque (250Nm) is available from 1500-4000rpm makes it easy to drive with plenty of oomph through the mid-range.

Worth noting, while the urge is there, the turbo four’s power delivery isn’t always linear, more often from step off, with the engine at times taking half a beat to respond to a squeeze of the accelerator pedal before the power arrives.

Nothing dramatic, however, and the ‘Shift-by-Wire’ eight-speed auto transmission is smooth, with ‘Eco’, ‘Normal’ and ‘Sport’ modes available, the latter holding onto ratios longer on the way up the gears and shifting down more readily when an extra burst of acceleration is required. And if you want to take full control, ‘manual’ shifts via wheel-mounted paddles are satisfyingly quick. 

Suspension is strut front with a ‘compound link crank-axle’ at the rear, the latter being Skoda-speak for a torsion beam. 

The SportLine’s suspension is 15mm lower than the Style’s with springs and shock absorbers re-tuned for sharper dynamic response. Yet, despite that and the standard 18-inch rims shod with low-profile tyres there’s no penalty in terms of ride compliance.

Even over coarse B-road surfaces the Octavia remains comfortable and composed. The steering is nicely weighted and road feel is good, with a nice connection between the front tyres and hands on the wheel.

Pressing on through the curves the car is stable and balanced with the (225/45) Bridgestone Turanza rubber gripping hard. And if you really have the bit between your teeth an electronically-controlled diff lock helps put the power down effectively.

Braking by ventilated discs at the front with solid rotors at the rear and under the pressure of some steep, twisting and fairly rapid descents stopping power is solid. The pedal is progressive on application and when easing off.

Under the heading of miscellaneous observations, engine noise is agreeably low, especially for a small capacity turbo-petrol engine, the sports front seats are supportive and comfortable over lengthy stints behind the wheel and a lateral slider located below the central multimedia screen to control audio volume is a neat ergonomic solution.

In the midst of the current arm wrestle between the design cleanliness of an on-screen volume control and the simple effectiveness of a physical dial the Octavia’s slider, while still a haptic-style operation, represents a safe and practical middle ground between the two.

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 Octavia is covered by Skoda’s seven-year, unlimited-kilometre warranty, which is two years up on the majority of the mainstream market.

Roadside Assist is complimentary for the first year, renewed annually if you have your Octavia serviced at an authorised Skoda dealer.

The main service interval is 12 months/15,000km, which is in line with most of the competition and Skoda offers five- and seven-year service packs, the latter equating to $393 per workshop visit, which isn’t out of line for the segment.

And through Skoda Choice you can opt for a Guaranteed Future Value offer ranging up to five years and currently at a 6.99 per cent rate.

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.