Cupra Formentor vs Mahindra XUV700

What's the difference?

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.