BMW 218i vs Mahindra XUV700

What's the difference?

The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.

More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.

A true BMW in name and nature, then..

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

The Mahindra XUV700 is a solid, well-rounded family SUV. It has a practical cabin with a usable third row and a punchy turbocharged powertrain. The Indian manufacturer needs to address a few things like interior quality and some ADAS calibration and there’s more work to do when it comes to ride and handling. But overall this seven-seat SUV represents exceptional value for money against some pricier rivals and should be on more consideration lists.

BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.

But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.

That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.

Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.

There’s a higher level of newness to be found inside.

The XUV700 is a reasonably handsome vehicle in the metal. It has a distinctive look that ensures it is immediately identifiable as a Mahindra. It is a clear evolution of the XUV500 it replaces, but far more coherent. 

It has a typical SUV shape but in profile the bonnet looks short and it has a big glasshouse with a kicked-up window line from the C-pillar back.

Front on the unique headlights surround an appealing six-bar grille with the cool Mahindra badge front and centre.

The rear features stretched and pinched tail-lights and the XUV700 sits up high on the road.

Inside the cabin is neat and the dash has an uncomplicated layout. It’s not the world’s most visually appealing interior but it doesn’t get anything wrong. Although the steering wheel feels a bit cheap.

The lovely dark grey interior is broken up with a light grey upper half and there’s stitching on the seats, dash and steering wheel. There are plenty of piano black inserts but it's not overdone. 

During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.

Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.

The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.

The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.

Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.

Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.

Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.

Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.

But, you know what is good enough? The engines BMW builds, that’s what.

The Mahindra boasts a versatile, practical cabin - not something all mid-size seven-seat SUVs can claim.

This grade has electric ‘smart’ door handles that pop out when the car is unlocked. They’re not super easy to grab and feel a little gimmicky. 

The sunroof has a solid power-operated blind, unlike an increasing number of models that come with a flimsy sheer blind or no blind at all, which is unimaginable in our hot Australian climate. Thank you, Mahindra! 

Another cool feature is the extendable sun-visors that are great at blocking out sun at the front or side, especially on longer drives.

A chunky rear centre headrest impedes rear visibility, but it is easily removed. However the rear outboard headrests are also big and that impacts vision out the large rear side windows.

Great to see Mahindra has retained physical controls for the air conditioning, although if you want to adjust anything digitally, you can via the central screen.

Sitting under that and the air vents are buttons for the reversing camera, hazard lights and other controls, then there’s a wireless phone charger, an extra little slot for your phone and two USB-A ports. No USB-C up front in the XUV700.

There’s decent storage up front with two compact, squarish cupholders in the console, a small central bin with a handy rubber key holder, while the glove box is a decent size and will fit more than just the manual.

Bottle storage in the front doors is excellent. The tall CarsGuide bottle fits easily and there’s extra storage for a bunch of other items. 

The front seats are on the firm side but the side bolstering is good, helping you feel nicely secured. The base makes you feel like you’re sitting on the car rather than in it. There’s not a great deal of adjustability - you can’t extend the under-thigh cushion - but the Mahindra has Mercedes-Benz-style controls on the door.

The multimedia screen houses a lot of functions. If you tap the bottom of the screen the climate controls including seat heating pop up. There are more functions if you tap the top of the screen like sound, camera view and the like.

The multimedia screen homepage has tiles, one says ‘Fun in XUV700’ (for Android Auto, Apple CarPlay and radio) and the other says ‘Fun with XUV700’ (vehicle performance). 

Driver assist functions are accessible via the driver’s instrument display using the steering wheel-mounted controls and you can change the intensity of cruise control and lane keep assist or turn off functions like traffic sign recognition and smart pilot assist. 

There are a few cons up front. The indicator sound is awful and makes it feel cheap. There are some quality issues, like the flimsy panel to the lower right of the steering wheel that’s home to the auto stop-start. It feels like it’s going to fall off. And some of the fabrics don’t quite line up.

The device charger could do with a fan as my phone gets super hot charging on the pad, while the ‘Siri’ talk-to-text function of Apple CarPlay is patchy. 

In the second row, the legroom is decent and while there’s not acres of room I don’t feel cramped sitting behind my 183cm (six-foot) driving position. A tiny transmission tunnel means good centre seat legroom. There’s a lever on the front passenger seat back allowing rear passenger behind to move that seat forward.

Headroom is also decent without being ample. There’s about an inch between my head and the roofliner.

The window line is low enough for small children to see out but not so low you feel like you’re sitting on the car. 

The rear seating row is comfortable enough but the backrests - which recline - are flat. 

You’ll find rear knee-level air vents, one USB-C port (the only ‘C’ port in the car) and a pair of map pockets, a phone slot under the vents, a centre armrest with two cupholders and loads of door storage for big bottles and more.

For child seats, the two outboard seats have ISOFIX anchors and there are two top tethers as well.

Access to the third row is much easier than I expected for a mid-size seven seater. The passenger-side single outboard seat tumbles flat then up, leaving plenty of space to get into the rear. There’s even a grab handle to assist.

Headroom isn’t great back there for me, but again, I am six-foot tall. A kid will be fine. There’s a surprising amount of legroom and toeroom. 

Third-row occupants have access to cupholders and air vents on both sides, a fan speed dial, speakers and a 12-volt outlet that is also accessible from the boot when the seats are lowered.

The fact the curtain airbags cover the third row is a big tick. Overall, a solid third-row experience.

There’s a handy plastic lever on the rear of the seats to lower and raise the third row easily. They don’t quite fold flat into the boot floor so they sit up a little, but don’t intrude on boot space.

It looks like there is a cargo cover option but it wasn’t fitted to this example of the car. There are lots of hooks in the boot to hold bags, but note there is no power tailgate - it’s a manual operation in the Mahindra. 

You also get a temporary spare wheel housed externally on the underside of the car.

One thing I can’t tell you unfortunately is the boot volume. Mahindra doesn’t provide those figures. I can say that when all three rows are in place, there is not much room behind the third row. Just enough for three backpacks or a few bags of shopping in a row. When the third row is lowered, there’s ample luggage space.

The Mahindra XUV700 is offered in two model grades, both powered by the same petrol engine. It all kicks off with the AX7 from an affordable $39,990, drive-away.

The focus of this review is the AX7L which tops the range at $42,990, drive-away, which is still great value.

At this price the Mahindra undercuts most mainstream medium SUVs like the Toyota RAV4 and Mazda CX-5 and lines up more closely with the GWM Haval H6 and MG HS from China.

But unlike most of the mid-size SUV set, the XUV700 has a third seating row. The only other offerings in this category to boast that option are the Honda CR-V, Mitsubishi Outlander and Nissan X-Trail, - all of which are more expensive for an equivalent seven-seat grade when factoring in on-road costs.

For the model year 2025 update, both Mahindra XUV700 grades gain all-black interior trim, while the AX7L updates to wireless Apple CarPlay and Android Auto, as well as ventilated front seats with memory settings for the power function.

Standard gear in the AX7L includes a panoramic sunroof, dual 10.25-inch screens, synthetic leather trim, keyless entry and start, a 12-speaker audio system, wireless charging and a leather steering wheel.

You also get a 360-degree surround-view monitor, Bluetooth, rain-sensing wipers, dual-zone climate control, 18-inch alloy wheels and an electronic park brake.

The only option available is premium paint at $495 extra, including the 'Midnight Black' shade on our test car.

This isn’t top-grade luxury car levels of standard gear, but there's very little that’s missing and for $43K, that’s impressive.

Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.

The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).

With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.

Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.

Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.

As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.

If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.

The XUV700 is powered by what Mahindra calls its ‘mStallion’ 2.0-litre, four-cylinder, turbo-petrol engine delivering 149kW of power and 380Nm of torque. These are solid outputs and the only petrol-powered mainstream rivals that come close to those figures are the Kia Sportage/Hyundai Tucson mechanical twins, with their 1.6-litre turbo punching out 169kW/350Nm.

The Mahindra’s engine is paired with a six-speed automatic transmission driving the front wheels only, so no all-wheel-drive option here.

OK, so is the 2 Series Gran Coupe cheap to run?

BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.

Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.

Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.

Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.

The XUV700 is only available with that petrol engine so no fuel-saving hybrid or plug-in hybrid options for now.

It’s also on the thirsty side with an official combined (urban/extra-urban) cycle fuel use figure of 8.3 litres per 100 kilometres. That’s more than petrol versions of the Mitsubishi Outlander and Nissan X-Trail.

After a week of mixed but mostly urban driving, the trip computer showed an average of 8.5L/100km, but my own calculation based on real-world use at the fuel pump came out at 11L, so a bit of a discrepancy there.

Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.

And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.

Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.

For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.

Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.

Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.

To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.

What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.

It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.

As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.

So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.

For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.

On the road the Mahindra has some clear pros and cons. Overall, it’s a more polished performer than you might expect.

The turbocharged engine sounds good when pushed and is a punchy unit, delivering linear acceleration and getting to speed quickly, mostly without fuss. The 235/60R18 MRF Wanderer tyres have a tendency to chirp when accelerating hard and the XUV700 would benefit from higher quality rubber.

The six-speed auto transmission works well with the engine, delivering smooth shifts but it can hold gears on downhill runs.

Ride quality is a mixed bag. Those tyres have a high sidewall but you’ll feel bumps like road and bridge joins, while speed bumps aren't so smooth, either. The ride is on the firmer side but it’s no dealbreaker. 

It’s a little top-heavy when cornering, so there is lateral movement in the car. A good reminder this is a family SUV, not a hot hatch.

Steering is overly light and a bit too sharp for this sort of vehicle. There’s nothing wrong with dull or slower steering in a family car because it’s less responsive if you accidentally turn the wheel when distracted by shenanigans in the back seat.

The brakes are also quite sensitive. Just a tap of the foot and you’re coming to a full stop.

A bit of road and wind noise creeps into the cabin, so it’s not the most hushed interior, but it’s not too dramatic.

Other points include a decent turning circle, making it more nimble than you might think in tight parking spots, and poor-quality, low-definition lane watch camera display. Also the remote lock and unlock is temperamental. You need to double check it’s locked.

The XUV700 is yet to be assessed by ANCAP so it currently doesn’t have a score.

The standard safety list is solid without being exceptional, and it includes seven airbags in this grade, with the curtain airbags stretching all the way back to the third seating row. However, it misses out on a front centre bag.

In terms of driver aids and advanced driver assistance (ADAS) tech, it also comes with adaptive cruise with stop & go, auto emergency braking, lane keep assist, lane departure warning, traffic sign recognition, tyre pressure monitoring, blind spot monitor and a pilot assist function. It lacks a rear cross-traffic alert.

The reversing camera lags when you put the car in reverse, taking a couple of beats to kick in. Not great when you’re trying to park on a busy street.

The adaptive cruise needs further calibration. When the system detects a car in front, it slows the Mahindra down a little too dramatically and takes too long to respond.

Here, however, is where BMW can do a bit better.

While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.

Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.

BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.

Mahindra covers the XUV700 with a seven-year or 150,000km warranty which is generous but doesn’t match Kia’s seven-year, unlimited-kilometre term. It also includes seven years of free roadside assistance.

The servicing schedule has a few quirks. There’s a free service at 1500km or one month of ownership, then the next service is at 12 months or 10,000km, whichever occurs first. After that the term is every 12 months or 15,000km, so it’s a little confusing.

There’s four years of capped-price servicing that averages out to about $445 per service. That’s roughly $100 more on average per service than a petrol Mitsubishi Outlander.