Hyundai Inster vs Mahindra XUV700

What's the difference?

The target market for the Inster isn't huge, and Hyundai knows it won't be a runaway best-seller for the brand. But those in the market for a bite-sized EV will find the Inster feels bigger, and drives better, than they might expect.

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.

The words small but perfectly formed appear here, with Hyundai’s insistence on not having a traditional range-wide design identity allowing them the freedom to create something unique and pretty funky here — though I do see some shades of Suzuki Ignis in the side profile.

It does look fun though, right? With the selfie ring-light-style headlights, Tetris-style rear lights, those swollen guards and the funky alloys.

And you can dial up further with the Cross variant, which gets a tougher, more squared-off look front and back - even if you’re more chance of meeting a bunyip than an Inster on your favourite off-road track.

Inside, the cuteness continues, though some of the scratchy cabin materials definitely point to the entry-level nature of the Inster.

Still, the seat materials, both the cloth and the leather, are lovely and thoughtfully coloured, and the twin screen setup is nice, too. I love the inclusion of a host of physical buttons that control the climate, stereo and the nav.

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 Inster stretches 3825mm long, 1610mm wide and 1575mm tall, but it rides on a 2580mm wheelbase – the later being bigger than the Hyundai Venue, and almost as big as the Kona.

It has allowed Hyundai to stretch the legroom options in the backseat, which actually gives you more space than the two bigger SUVs mentioned above, helped massively by the fact the Inster's rear pew is on rails, allowing you to slide it right back, and that it reclines a fair way, too.

I'm 175cm and I found I had more than enough leg and headroom, and with the backseat in full La-Z-Boy mode, I could sit back and relax, even on a longer journey.

It's a good thing it's four seats only, though. While the Inster feels longer than it is, it doesn't feel any wider, and even in the front seat you can feel like you're in economy class when you have a passenger on board, with both of you rubbing elbows on the central armrest.

Clever storage abounds though, with hidey-holes, handbag hooks and more dotted throughout the cabin. Opt for the roof box – and wear the efficiency penalty – and you can pop another 75kg worth of gear on the roof.

Also cool is the fact the backseats fold completely flat in the entry-level Inster, upping the storage possibilities. And in the top-spec Cross, the front seats fold down, too, allowing for fairly long items to be stowed. Though why you would need the driver's seat to fold flat is a bit of a mystery, unless you're looking to turn your Inster into an immovable storage container.

Apparently in Korea you can option a mattress that slides over all four seats, but I can't see that taking off here.

The official storage numbers are 280L and 1059L, and the small boot is helped along a little by underfloor storage where you can pop your charging stuff.

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.

The Hyundai Inster Standard Range kicks off power proceedings, with a single front-mounted electric motor producing 71kW and 147Nm.

Next is the Extended Range, which shares its outputs with the Inster Cross. Here, the front-mounted motor’s outputs have been ticked up slightly, now producing 84kW and 147Nm.

Those aren’t big numbers, but then neither does either Inster feel particularly slow or underpowered. 

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.

Standard Range cars get a 42kWh lithium-ion battery, producing a driving range of 327km. The Extended Range and the Cross get a bigger 49kWh battery, increasing the range to 360kms. Now, that roof box. It does look cool, but you’re going to really need to carry stuff to choose that option, given it increases energy consumption by 25 per cent, reducing the Cross’s range to just 293km.

When it comes to charging, the Inster is set up for 120kW DC fast charging, or 10.5kW AC charging - provided you have that much power available at home, as most wall boxes are more like 7.1kW.

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.

Honestly, the impact electrification has had on vehicles in this class is staggering.

It wasn't so long ago that these micro cars were fitted with underwhelming petrol engines, four- or five-speed gearboxes and all the noise-deadening technology of a tin of beans.

As a result, they were cute, but painful. It always felt like you had to wring their neck to get the most out of them, and when you did, they were loud, buzzy and annoying.

But the Inster is none of those things. While not ludicrously powerful, the electric propulsion offered, and the nature of the way it's produced, feels ample in the little Hyundai, with the acceleration smooth, silent and easy,

It's also just generally quiet. Hyundai says it has double-sealed the doors, used thicker glass and fitted full underbody coverings to reduce the NVH - or noise, vibration, harshness - levels, and all of that, combined with the peace and quiet of an electric motor, have created a mostly blissful cabin experience.

The ride and handling hasn't been through the full Hyundai Australia ride and handling calibration of old. Instead, it's undergone the brand's more modern approach, which is to take the best componentry from what's available overseas and then build the Aussie-spec cars from there.

Either way, it all works pretty well here. Only really big bumps clang into the cabin, with the Inster otherwise riding well over all of the road surfaces we encountered.

The point, I guess, is that it's a drive experience stuffed full of happy surprises. The ride, the acceleration and the refinement are all well up on what you might expect from a city car.

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 Inster delivers super long service intervals, requiring a trip to the service centre every two years or 30,000kms, but each service is priced at $655. A Toyota Yaris Cross, for perspective, will see you visit the service centre twice as often, but each visit will only cost you $255, or $510 every two years.

The Hyundai warranty is five years/unlimited kilometres, while the high-voltage battery is covered for eight years.

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.