What's the difference?
We’ve waited more than two years and it’s finally here.
Cupra has introduced the updated version of its most popular car in Australia, the Formentor.
A spicy small SUV rival to the likes of the Mini Countryman, BMW X2 and Audi Q3, among others, this design-led small SUV is now offered in more flavours than ever before.
It’s our first time testing out this updated Formentor on local soil, so read on to see how it stacks up.
Just in case attacking Australia's crowded SUV market with a virtually unheard of Indian brand wasn't a high enough hurdle to leap over, Mahindra had made its task even harder - think a Bollywood version of Mission Impossible - by launching its XUV500 SUV here with a diesel engine (which nobody wanted) and a manual gearbox (which few could even remember how to use).
Fortunately, it fixed one of those issues late in 2016, finally adding an automatic transmission to the line-up. And now, at long last, it's fixed the other.
This, then, is the petrol-powered XUV500 SUV. And, on paper at least, it's the most sense-making Mahindra to date.
For one, it's a ferociously cheap way into a new seven-seat SUV. For another, it's pretty well equipped, even from the base level. There's a long warranty, an equally long roadside assistance offering, and there's capped-price servicing, too.
So, should the mainstream SUV players be looking over their shoulders?
Spoiler alert: no.
It’s clear that Cupra has listened to feedback as this updated Formentor addresses many key criticisms of the pre-update car. Overall it makes it easier to live with and to recommend than before.
Although the VZe's updated PHEV powertrain offers double the amount of electric range, the V forms as a sweet spot of the line-up as it offers all the power and equipment you'd ever need. It's hard to look past the top-spec VZx though as power is a drug.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
This petrol-powered and well-priced XUV500 W6 might mark Mahindra's most convincing effort at cracking Australia's congested SUV market, but we're still not completely convinced.
That said, it's certainly cheap, the ownership credentials stack up and it's a very comfortable way to transport seven people.
As with many updates, the Formentor has received some mild changes to the exterior design. A lot of it centres around the new, shark-like front end which brings it in line with the Leon, Terramar and Tavascan.
I’ve always been a fan of the Formentor’s slightly raised but still hunkered-down hot hatch-look. The body lines and wheel-arch flares also lean into the dynamic aesthetic.
The VZx trim looks particularly sexy with its 19-inch black and copper forged alloy wheels and the black quad exhaust tips.
I cannot wait for the VZ5 to arrive as it’s set to receive even larger 20-inch alloy wheels and more prominent quad exhaust tips that are stacked and finished in copper.
Inside it’s fairly similar to before but a highlight is the larger 12.9-inch touchscreen multimedia system. It suits the dashboard nicely while not looking too big.
There are still the pronounced, hexagonal air vents up front, plus the ambient lighting strip that wraps all the way from door to door. It’s a cool look.
If you’re keen on the ultra-sporty look, you can option Sabelt front bucket seats with carbon-fibre backs as part of the Extreme package in the VZe and VZx. It’s worth noting that this removes the front centre airbag though.
There's no getting away from the fact the XUV500 is not the sleekest, prettiest SUV in the pack. But it's not ugly, either. More that it looks like it's doing its best with a design philosophy hatched a generation or two ago.
Its best angle by far is when viewed straight on, where the piano-black grille, dual bonnet bulges and complicated (read: a little weird) headlight clusters all add some road presence to Mahindra's only SUV.
A side-on viewing, however, is less satisfying, where a combination of strangely placed and super-sharp body creases (including one over the rear wheelarch, which adds a Harbour Bridge-style crescent to the otherwise-straight window line) and serious rear overhang give the XUV500 an inescapable awkwardness.
Inside, expect a vast collection of rock-hard (though nicely patterned) plastics, with the ambiance rescued somewhat by the clean-looking and vertical central control unit, which is home to the media screen and air-con controls.
Ready for some hashtag real talk? There are better-looking and better-feeling seven-seat SUVs out there. But there aren't many that start at $25,990 drive-away. And I think that's Mahindra's point.
The standard seats in the Formentor have a sporty design but are still supportive and comfortable. The driver’s seat offers electric adjustment and memory as standard, while both front seats are heated.
The optional Sabelt front bucket seats hug you tighter which is nice if you plan to driving on twisting roads. It’s cool that they retain the electric adjustment and heating as this is rare in ultra-sporty seats.
Looking ahead, this steering wheel is one of my favourites on offer from any brand currently. The rim isn’t too thick or thin, plus there are plenty of physical buttons and dials. It makes it a joy to interact with.
This update has made the steering wheel-mounted engine start-stop and drive mode buttons standard across the line-up. It makes the less sporty trims feel a touch more special.
The 10.25-inch digital instrument cluster is still standard across the line-up and offers plenty of configurable options. You can set it up exactly how you'd like.
Moving across, there’s the aforementioned 12.9-inch touchscreen multimedia system. It operates on updated software which makes navigating key menus much easier.
Some key climate control functions remain at the bottom of the touchscreen which is a little easier to interact with on the move. Ideally a physical button cluster would be better but you can’t have everything.
Another key change with this update is the touch sliders under the touchscreen are finally illuminated, allowing you to see what you’re pressing at night. This should have been standard since launch.
Storage up front is adequate for a car of this size. There’s a wireless charger that’s not ventilated, two USB-C ports, a strange cupholder set-up with essentially 1.5 cupholders, a centre console box with a lid that ratchets, as well as a glovebox on the passenger side.
It’s clear the focus of the Formentor’s cabin is up front but space in the second row is a better than you’d think. At a leggy 182cm I have decent leg and headroom behind my own driving position, but toeroom is particularly good, allowing you to slide your feet comfortably under the seat ahead.
What isn’t so nice is the front seats are rather bulky, particularly the optional Sabelt bucket seats. They block your view ahead, requiring you to either lean over or look out the side window.
Second-row amenities include a third zone of climate control with air vents on the back of the centre console, as well as two USB-C ports and a fold-down armrest with cupholders.
There are ISOFIX points on the two outboard seats, as well as top-tether child seat anchorages across all three rear seats.
All versions of the Formentor now receive a hands-free power tailgate which is handy if you’ve got your hands full. It opens and closes with a kick under the rear bumper.
Boot space depends on the trim level. The S offers 450L, the V and VZx have 420L and the VZe only offers 345L with the rear seats upright. The latter is poor due to the placement of the high-voltage battery.
With the rear seats folded there’s between 1300-1400L of boot space, depending on the trim level.
Boot-related amenities include a light and some hooks. It’s great to see a space-saver spare wheel as standard across all variants besides the VZe. This is once again due to the high-voltage battery.
You even retain a space-saver spare wheel if you opt for the Extreme package in the VZx, though it has a note stating you cannot put it on the front as it physically won’t fit over the larger front brakes.
If you get a puncture on the front, you need to swap a wheel from the rear onto the front, then put the space-saver spare on the rear. You should technically be doing this anyway as space-saver spare wheels aren’t meant to go on the front in cars that are primarily front-wheel drive, like the Formentor.
Pretty damn practical, actually, regardless of whether you want to carry people or cargo. Carrying both at the same time, however, is tricky.
But let's start with people. There is a huge amount of room in the third row of the XUV500, a space with enough head and legroom to put plenty of its competition to shame.
Thanks to second-row seat backs that fold flat, before the the entire seat lifts up and pushes forward, climbing into seats six and seven isn't too big a drama, either.
We rarely say this about seven-seat cars, but at 175cm, I'd feel plenty comfortable back there on a longer drive. There are two air vents in the third row, too, along with bottle storage and side-seat storage for thin items.
All XUV500's are fitted with a 70-litre fuel tank.
The space in the middle row is ample as well, and you'll find three ISOFIX attachment points, one for each of the three seats. There's also a door pocket in each rear door and storage nets on the rear of the two front seats. A pull-down divider that separates the back seat is home to two cupholders, matching the two for front seat riders.
The only downside to all this people-lugging happiness is that, with the third row of seats in place, there is absolutely no room for luggage. Mahindra doesn't quote a litre storage figure when seven are seated (mostly because it would probably be embarrassing to write "one litre"), but trust us, you'll be lucky to squeeze a soft backpack in the boot with all seats in place.
Things improve considerably when you drop the third row of seats, though, which unlocks 702 litres of storage, and that number climbs to 1512 litres with the second and third row folded down.
New with this update is an entry-level, mild-hybrid trim called the S. It’s priced from $49,990 before on-road costs.
However, all the variants that carried over received a price increase of at least $4000. The Formentor V now starts at $57,490 before on-road costs, the VZe now costs $68,990 and the VZx costs $69,990.
At the top of the line-up is the forthcoming, limited-production VZ5 which is due towards the end of 2026. It’s priced from $94,990 before on-road costs, which makes it the most expensive Cupra ever offered in Australia.
All Formentors now receive a larger 12.9-inch touchscreen multimedia system as standard, as well as a hands-free power tailgate and heated sports bucket front seats.
Stepping up to the V, which was previously the entry-level model, you get a more powerful engine with all-wheel drive, as well as 19-inch black and copper alloy wheels.
The VZe, which is the plug-in hybrid (PHEV) trim, gains a 12-speaker Sennheiser sound system, leather-appointed upholstery and adaptive suspension. The latter was previously standard across the line-up.
Lastly the VZx gets 19-inch black and copper forged alloy wheels, black quad exhaust tips and a trick torque-splitting rear differential that allows for a Drift mode.
The entire line-up can be optioned with a panoramic glass sunroof for an additional $2000.
The Formentor S and V can be optioned with the Leather & Sound package for $2200 which brings Nappa leather-appointed upholstery, power adjustment and memory for the passenger seat, as well as a 12-speaker Sennheiser sound system.
Lastly, the Formentor VZe and VZx can be optioned with the Extreme package for $6500 and $7000, respectively. It brings matrix LED headlights, Sabelt Cup bucket front seats, then four-piston Brembo front brakes in the VZe and six-piston Akebono front brakes in the VZx.
Make no mistake, this Mahindra kills the competition on price. The entry-level W6 version will cost you a lean $25,990, while the fruited-up W8 version will set you back $29,990. You can even have an AWD W8 for $32,990. The best part? All of those are drive-away prices.
Go for the W6, and you can expect 17-inch alloy wheels, cloth seats, air-con with vents (powered by a second compressor) in the second and third row, cornering headlights with DRLs, front and rear fog lights, cruise control, rear parking sensors and a 6.0-inch multimedia screen linked with a six-speaker stereo.
Spring for the W8, and you'll add leather seats, a reversing camera, tyre-pressure monitoring and a bigger, 7.0-inch screen with standard sat-nav.
At launch all versions of the updated Formentor feature turbocharged four-cylinder petrol engines of varying sizes and power outputs, as well as dual-clutch automatic transmissions.
This will change when the flagship VZ5 with its turbocharged five-cylinder from the Audi RS3 arrives later this year.
The entry-level Formentor S is powered by a 1.5-litre turbo four-cylinder with 48V mild-hybrid assistance and total system outputs of 110kW and 250Nm. It has a seven-speed dual-clutch and is front-wheel drive.
The Formentor V gets a 2.0-litre turbo four-cylinder that produces 150kW and 320Nm. This is 10kW more than before. It has a seven-speed dual-clutch and is all-wheel drive.
The Formentor VZe has a 1.5-litre turbo four-cylinder and an electric motor with total system outputs of 200kW and 400Nm. This is 20kW more than before. It has a six-speed dual-clutch and is front-wheel drive.
Lastly the Fomentor VZx has a 2.0-litre turbo four-cylinder that produces 245kW and 420Nm. This is 17kW and 20Nm more than before. It has a seven-speed dual-clutch and is all-wheel drive.
There's a diesel engine currently available, but the clock is ticking - Mahindra expects it to be phased out within six months. But the big news here is the new petrol engine, a turbocharged 2.2-litre unit good for 103kW/320Nm. It's paired exclusively with an Aisin-developed six-speed automatic transmission, and will send it's power to the front or all four wheels.
Mahindra doesn't quote official performance figures, but those engine outputs hardly scream excitement, do they?
One of the biggest changes with this update is the Formentor VZe’s PHEV system.
It now features a larger 20kWh lithium-ion battery pack that allows up to 114km of electric driving, according to WLTP testing. This is roughly double the amount of the pre-update car.
This battery now also offers DC fast charging at rates up to 50kW, plus the AC charging rate has increased to 11kW (it was previously 3.6kW).
Cupra claims the updated Formentor VZe consumes an average of 1.7L/100km, which is 0.2L/100km better than the pre-update car. However, this will depend greatly on whether you charge the battery.
Elsewhere in the line-up, the entry-level Formentor S with its mild-hybrid system has a claimed combined fuel consumption of 5.5L/100km.
The Formentor V is claimed to consume 7.0L/100km and the VZx is claimed to consume 8.3L/100km (8.5L/100km with the Extreme package).
The Formentor V and VZx have 55L fuel tanks, the S has a 50L fuel tank and the VZe has a 40L fuel tank. All require a minimum of 95 RON premium unleaded petrol, while the VZx requires a minimum of 98 RON premium unleaded petrol.
Local numbers are yet to be confirmed, but after an admittedly vigorous local test, the on-board computers was reading 13+ litres per 100km. All XUV500's are fitted with a 70-litre fuel tank.
The entry-level Formentor S’s mild-hybrid powertrain has modest outputs of 110kW and 250Nm and around town there’s enough juice on tap.
However, once you get out on the open road the ceiling of this powertrain reveals itself quickly, requiring it to dive back through the gears ruthlessly in order to keep up the pace. This is less of a problem if you’ve already got the car in a sporty drive mode.
The small electric motor that’s fed by the 48V mild-hybrid battery provides a minor boost off the mark, but it mainly smooths out the low-speed hesitancy from the dual-clutch automatic.
Moving up, the Formentor V’s turbo-petrol engine firms as the sweet spot of the line-up if you’re not after the ballistic craziness of the VZx. With the extra power and torque it’s a little less stressed than the S, plus you have the security of all-wheel grip.
The Formentor VZe’s PHEV powertrain is noticeably different from behind the wheel. Extra electric range aside, the electric motor is still packaged within the dual-clutch transmission although unlike the pre-update model, you can no longer feel the car shifting between gears.
There’s plenty of power available and depending on the battery charge the car can turn the engine off and on even at highway speeds. You can’t actually feel it happening, you only see the tacho rise and fall.
Lastly, the VZx is a missile. It feels incredibly unstressed in everyday driving and with a subtle flex of the right foot it gets moving with haste.
Like some Volkswagen Group products, the Formentor can hold a higher gear in its standard drive mode, taking a beat to kick down a gear if required. Thankfully peak torque is available down low in the rev range across the line-up.
Compared to the pre-update model, the VZx now gains a trick torque-splitting rear differential and a ‘Drift’ mode. We had the chance to sample the old and new cars back-to-back on a wet skid pan and the difference is night and day.
The pre-update model has terminal understeer no matter how much you coax it, however the updated Formentor VZx is incredibly tail-happy. You can do smile-inducing four-wheel drifts with ease, plus it will stop itself from going over the edge and spinning out.
Obviously this is something that you can only use on private roads and it isn’t something that you’d use everyday. It’s a cool novelty feature to try if you get the chance.
As standard there is progressive steering across the line-up which ramps up the resistance the more you turn the wheel. In practice this makes the Formentor a fun and agile car to drive, even around town.
A subtle change with this update is the entry-level Formentor S and V now receive a standard passive damper set-up, whereas the VZe and VZx have adaptive dampers. The latter was previously standard across the line-up and it allows you to configure the ride from comfort soft to sporty firm.
While it’s nice to have the configurability, the ride on the standard passive dampers is still beautifully compliant. It’s a little more comfort-oriented than I’d expect from a Cupra but I don’t hate this in the less-powerful variants.
In terms of noise, vibration and harshness (NVH), this is the Formentor’s downfall. Like many European cars, there is a lot of road and tyre noise on the open road, especially on coarse-chip roads.
Surprisingly some of the cars on the launch were already starting to develop random rattles around the cabin. This isn’t great as all the cars were brand new with around 1000km on the odometer.
About as old school as rocking a pair of button-up tracksuit pants with a Run-DMC cassette stuffed into your Walkman.
On a straight and unchallenging road, there's stuff to like about the petrol-powered XUV500. The engine, while gruff under heavy acceleration, doesn't feel too wheezy when you're not asking a great deal of it, and nor is the cabin overly loud at suburban speeds. It's a comfortable space for driver and passengers, too, and the gearbox performed seamlessly on our short test drive.
But that's about where the good news ends. There's an unshakeable agricultural feel to the way this Mahindra SUV goes about its business, and nowhere is that more obvious than through the steering wheel, which has only a vague and difficult relationship with the the front tyres, making it seriously tricky to approach twisting roads with anything approaching confidence.
The steering is slow and cumbersome - light when you first begin turning the wheel, with a ton of weight appearing by surprise midway through the cornering process - and it has a tendency to fight back should the front wheels find a bump or corrugation in the road, too.
The body lolls about when challenged, too, and the tyres are quick to give up their grip on tighter corners. All of which would give it a certain retro charm if it wasn't so very new, and I must admit I was cackling maniacally on some of the more twisting roads.
But it's simply not a car I could live with.
The Cupra Formentor originally received a five-star ANCAP safety rating in 2021 and this has been renewed for the updated model based on testing conducted by Euro NCAP in 2025.
It’s worth noting that this doesn’t apply to variants equipped with the Extreme Package, as well as the VZ5, as it removes the centre front airbag.
All models receive 10 airbags including rear-side and front-centre airbags as standard, plus autonomous emergency braking (AEB), adaptive cruise control with lane centring, a surround-view camera, as well as a parking assist.
New with this update is traffic sign recognition with intelligent speed limit assist which can, thankfully, be permanently switched off.
There’s also a driver attention monitoring system with a camera built into the rear-view mirror.
You can turn this off by using the central touchscreen but it defaults back on every time you turn the car on.
Expect dual front, front-side and curtain airbags (though the latter don't extend to the third row of seats), along with rear parking sensors and ESP. Stepping up to the W8 trim adds a reversing camera with dynamic guidelines. The XUV500 was awarded a four-star (out of five) ANCAP assessment when tested in 2012.
The Formentor, like all other Cupras, is covered by a five-year, unlimited-kilometre warranty, which is a little lacklustre for a mainstream brand now as many have moved to conditional eight or 10-year terms.
Logbook servicing is required every 12 months or 15,000km, whichever comes first.
There are three- and five-year pre-paid service packages available that are priced at $1090 and $2190, respectively. In the latter case, this means each service averages out to almost $440 which is fairly average for a European car.
Cupra currently has 40 dealers and 28 service centres in Australia. Many of these are located around major cities.
All XUV500s are covered by a five year/100,000km warranty (though the final two years apply only to the drivetrain), along with five years of complimentary roadside assistance.
The XUV500 is also covered by Mahindra's capped-price servicing program for the first three years of ownership, and will require servicing every six months or 10,000km.