What's the difference?
The Hyundai Kona is the Korean car giant’s best-selling model in Australia, by a reasonably comfortable margin. And in 2025 it managed to battle its way to the top of the ludicrously competitive ‘Small SUV under $45K’ new-vehicle sales category.
Chery’s breakthrough Tiggo 4 Pro, GWM’s Haval Jolion, the MG ZS and close to 20 other well-credited segment rivals can all dream on because currently the Kona has their measure.
So, what’s all that about? Why are so many Aussie SUV buyers choosing to put a Kona in the driveway?
In an attempt to answer that question we slotted a Kona Hybrid into the CarsGuide garage, in this case a new mid-spec Elite version, to explore its relative strengths and weaknesses.
So, if you’re in the market for a compact SUV, with the Kona on your shortlist (and odds are it already is) stay with us for a detailed examination.
There are around 30 different models fighting for your attention in Australia’s medium SUV segment. More than double that if you include premium options. In other words, there’s overwhelming choice.
Some of the most popular options include Toyota’s RAV4, the Mazda CX-5, Kia Sportage and Mitsubishi Outlander, with a bunch of Chinese brands climbing up the charts.
But have you ever considered a Mahindra? The Indian carmaker has been operating in Australia for close to 20 years and the product line-up has improved considerably.
Case in point, the MY25 Mahindra XUV700. A replacement for the unloved XUV500, it’s just come in for a refresh adding new interior trim and tech features and it’s still affordable.
But is it worth taking a chance on the up-and-coming brand? Read on to find out.
It’s easy to see why the Hyundai Kona leads the Aussie small SUV category, with this hybrid version enhancing the car’s abilities in key areas. Sharply priced and well-specified, comfortable and practical with a hugely efficient powertrain as well as refined dynamic performance. It’s a compelling package.
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 Kona’s exterior mixes smooth curves across its softly rounded nose and swollen haunches with sharp lines and geometric shapes in the lower grille, wheel arches and rear bumper.
And when the current, second-generation version arrived in mid-2023 it swapped out its predecessor’s already slimline LED daytime running lights for an even thinner strip running the width of the car, in similar fashion to the Hyundai Sonata sedan and Staria people mover.
The single line light signature is repeated with the tail-lights, a brake, reversing and indicator cluster confined to the outer rear edges.
Throw in a conspicuous diagonal character line across the doors, and bright metallic accents making a visual connection between the top of the tailgate and the lower edge of the side glass and there’s a lot going on.
Always a subjective call, but I don’t mind the Kona’s design, although our test car’s ‘Mirage Green’ paint finish leaves me (and my significant other) cold.
Inside, the colour palette is uniformly grey which contributes to a restrained, relatively low-key feel, although light trim for the headliner and pillar covers brightens the mood somewhat.
The dash treatment is cool and contemporary, comprising a wide wrap-around instrument and media screen panel next to a narrow tray on the passenger side.
Fit and finish is impressive and details like perforated centre panels on the leather-faced seats dial up the premium feel.
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.
Even though the Kona measures a relatively modest 4350mm end-to-end, it offers up copious amounts of interior space. Dr Who would be proud.
Lots of breathing room up front, with the ‘shift-by-wire’ auto transmission shifter’s location on the steering column freeing up extra space in the centre console.
There’s a lidded bin between the seats (the padded top of which doubles as a centre armrest) with an open tray the size of a shoebox in front of it (which includes a pair of swivel-out bottle or cupholders) as well as a wireless phone charging bay ahead of that.
Generous bins in the doors include a recess for large bottles, plus there’s a decent glove box on the passenger side and a handy open tray above it. Plenty of room to keep the bits and pieces of everyday life under control.
Power and connectivity for the driver and passenger runs to two USB-C sockets and a (180W) 12-volt outlet.
Switching to the back is where the Tardis factor steps up a notch, the Kona offering space more in line with a next-size-up medium SUV.
Sitting behind the driver’s seat set to my 183cm position there’s loads of leg and headroom and even enough shoulder room for three adults to get to know one another on shorter journeys. A close to flat floor also helps with foot room in the centre position. Worth noting the rear seat backrests recline slightly for extra comfort options.
No door bins as such but, again, there are recesses for bottles. Netted map pockets on the front seat backs are helpful as is a fold-down centre armrest, which includes a pair of cupholders.
Individual air vents for back-seaters (in the rear of the front centre console) is always a welcome inclusion, and there’s a small oddments tray underneath them. Another pair of USB-C sockets will keep devices charged.
Boot capacity is healthy at a class-competitive 407 litres (VDA), expanding to 1241L with the 60/40 split-folding second row seat folded.
There are storage wells behind the rear wheel tubs, multiple bag hooks and four tie-down anchors to help keep loads secure.
There’s a temporary space-saver spare under the boot floor, which gets a tick over the increasingly common repair kit option and you’ll be able to tow a 1.3-tonne braked trailer (600kg unbraked).
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.
When you’re sitting on top of the sales pyramid, everyone wants a piece of you and it feels like Hyundai has priced and specified the Kona to match the market with some special touches thrown in here and there.
At $39,950, before on-road costs ($44,738, drive-away), the Hybrid Elite’s standard equipment list is generous.
Aside from the safety and performance tech covered further down, big ticket items include leather-appointed seats and steering wheel, heated and power-adjustable front seats (10-way driver / eight-way passenger), 18-inch alloy wheels, LED headlights, tail-lights and DRLs, keyless entry and start, adaptive cruise control and auto rain-sensing wipers.
There’s also dual-zone climate control, digital radio, wireless Android Auto and Apple CarPlay, six-speaker audio, a 12.3-inch multimedia screen and 4.2-inch instrument cluster, rear privacy glass and more.
A sneaky power tailgate and/or ventilated front seats would be nice at this price-point, but they’re by no means mandatory for the class.
Similarly priced hybrid rivals like the Haval Jolion Ultra Hybrid ($38,990, drive-away), Honda HR-V e:HEV L ($42,900, drive-away), Subaru Crosstrek Hybrid L ($39,590, before on-road costs) and Toyota Corolla Cross GXL Hybrid ($41,190, before on-road costs) are broadly aligned with the above features list but none of them put the Kona Hybrid Elite in the shade.
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 Kona Hybrid is powered by a naturally aspirated 1.6-litre, four-cylinder petrol engine working in concert with a single electric motor, both driving the front wheels through a six-speed dual-clutch automatic transmission.
The all-alloy engine features dual variable valve timing and direct-injection to produce 77kW at 5700rpm and 144Nm at 4000rpm, the permanent magnet synchronous motor chipping in with 32kW/170Nm for a total combined outputs of 104kW/265Nm.
That power output is in the middle of the small hybrid SUV pack and torque is at the higher end.
Kerb weight is a fraction over 1.5 tonnes and you can expect 0-100km/h acceleration in the high 10-second range with a top speed around 170km/h.
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.
Hyundai’s official fuel consumption figure for the Kona Hybrid Elite, on the combined (urban/extra-urban) cycle is a miserly 3.9L/100km, the 1.6L engine emitting 89g/km of CO2 in the process.
Minimum fuel requirement is 91 RON ‘standard’ unleaded and with a 38-litre tank theoretical range is around 975km.
On test, over several hundred kays taking in city, suburban and freeway running, we saw an average of around 4.4L/100km, which is impressive and a big contributor to the car’s appeal.
Using our real-world test number, the range figure comes in at a still handy 860-plus km.
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 first things that come to mind when it comes to driving the Kona Hybrid are comfort, quietness and lack of stress.
From an ergonomic point of view the dash and cabin layout make life easy. There are physical controls for key functions like heating and ventilation, as well as audio and drive modes. Not a fan of the hard driver’s door armrest, though.
The engine is quiet and the transition between combustion and electric power is seamless. It’s fun to watch the (available) graphic screen in the driver’s display illustrating where drive is coming from at any given moment. Without it you’d be hard-pressed to know.
Acceleration is more than adequate and the powertrain’s bias towards electric propulsion means take-offs are ultra-smooth.
Suspension is by MacPherson-type struts at the front with a multi-link rear set-up and ride quality is outstanding. Despite the Kona Hybrid’s relatively large 18-inch rims, bumps and ruts don’t cause major disruption and the Kumho Ecsta PS71 tyres (215/55) are exceptionally quiet.
Steering accuracy and road feel are both good and drive mode switches between ‘Normal’, ‘Eco’ and ‘Sport’ are noticeable, the latter dialling up urgency and dynamic response.
That said, we found ourselves in Eco most of the time, without any penalty in terms of throttle response or cruising ability.
Torque vectoring helps keep everything buttoned down if you decide to press on through your favourite set of corners, the front seats remain comfy on longer drives while keeping you securely located and the ‘shift-by-wire’ electronic gearshift is slick.
Physical brakes are ventilated discs at the front with solid rotors at the rear and they operate with reassuring smoothness. An active hydraulic booster controls regenerative braking, adjustable through three levels. Warning: the most aggressive setting makes the car annoyingly ‘shunty’ at slower speeds.
Driver-assist safety tech makes its presence felt occasionally, but never to a disturbing degree… with one exception.
Despite the ability to program a steering wheel button to short-cut directly to the appropriate screen, the need to cancel an incessant and sometimes inaccurate overspeed warning every time you start the car is a pain.
A tidy 10.6m turning circle helps in slow-speed manoeuvres as do front, side and rear parking distance warnings and a high-quality reversing camera.
The Kona Hybrid is as good or better than anything in the class when it comes to the drive experience.
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 Kona scored four from a possible five ANCAP stars in 2023, with particularly strong results in Adult Occupant Protection (80 per cent) and Child Occupant Protection (84 per cent).
It features a full portfolio of crash-avoidance tech, including AEB with forward collision warning as well as cyclist, pedestrian and motorcycle detection, plus car-to-car junction, crossing and head-on detection. Phew!
On top of that, there’s lane-keeping and lane-following assist, blind-spot monitoring, driver-attention warning, rear cross-traffic alert and collision avoidance, ‘Remote Smart Parking Assist’, ‘Safe Exit Warning’, driver fatigue detection, tyre pressure monitoring and more.
If, despite all that, a crash is unavoidable there are seven airbags fitted, including a front centre bag to minimise head clash injuries between driver and co-pilot in a side collision.
There’s also multi-collision brake (to reduce the chances of subsequent impacts after an initial crash), auto collision notification and an emergency call (SOS) function.
For baby capsules or child seats there are three top-tether points for child seats across the second row with ISOFIX anchors on the two outer positions.
All in all, a comprehensive safety offer that matches or betters the Kona’s class competitors.
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 Kona is covered by Hyundai’s seven-year/unlimited-km warranty (upgraded from five years mid-last year), which is ahead of the mainstream five-year warranty pack.
Roadside assistance is complimentary for the first year, with the deal extended for another 12 months every time the car is serviced at an authorised Hyundai dealer.
Speaking of which, scheduled servicing is recommended every 12 months/10,000km, which is a little lower than the (15,000km) norm for the category. After a complimentary check up at six weeks/1500km, the first seven services (in line with Hyundai’s ‘Lifetime Service Plan Pricing’) come in at $3782, for an average of $540 per workshop visit.
That’s on the high side considering an equivalent Toyota Corolla Cross (in line with ‘Toyota Service Advantage’ pricing) will set you back an average of $354 per service over the same period.
Hyundai has a network of 185 dealers covering every Australian capital, state and territory.
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.