Mahindra XUV500 vs Audi SQ7

What's the difference?

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.

There are newer options than the current Audi SQ7 and SQ8, including those which use the same platform, but don't write these luxury large SUVs off just yet.

It's a rare thing that a vehicle costing $200,000 has an air of pragmatism about it, but the SQ7 does. Its sensible leather upholstery, decent practicality, towing capability and near-excess of interior space make it a great family wagon.

As a counterpoint, the sharper looking SQ8 has minimal trade-off in comfort and interior room (at least for five) and is the kind of statement piece you'd expect for the price — especially in one of its loud paint colours.

Whichever way you leap, it's true that while the SQ7 and SQ8 are ageing, they are doing so gracefully and remain a superb option in this segment.

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

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.

If you're getting an SQ7, you'll want to tick the 'Black Pack' box because otherwise there are a lot of high-gloss silver details, especially at the rear that don't suit this tall and slightly awkward SUV.

The SQ8 is more convincing, appearing wider on the road with its new 'singleframe' grille design seemingly sucking it even closer to the tarmac like some kind of overgrown Audi RS3.

Both get an attractive new 2D design for the Audi rings and L-shaped grille details. These aid the SQ7's front end which is more muscular and purposeful than before.

The attractive lights have moved higher up the front end for enhanced presence, too. You get Matrix LEDs as standard but these candles are the hardcore HD Matrix items that feature laser light for further even longer light throw at night. They are simply awesome.

Fresh 22-inch alloy wheels and minor changes to badges finish off the exterior treatment for both cars.

The SQ8's bold specification — finished here in 'Sakhir Gold' — sets it apart from other SUVs as the metallic gold paint shimmers in the sunlight. The SQ8 is also available with whopping great 23-inch alloy wheels that you see here.

Inside, both cars share a similar architecture with 10.1-inch touchscreen for the multimedia and an 8.6-inch item below for heating and ventilation settings. 

The SQ7 is a great example of a design ageing without dating, its confident horizontal lines and well-proportioned cabin features are as attractive as they were at launch, if less impressive than the related VW Touareg's whopping 15-inch screen or the minimalist Range Rover Sport.

Adding to the feeling of quality is that signature Audi smell — a combination of leather and the Sensory Package's perfume, no doubt. The SQ7 keeps a round-bottom steering wheel which remains one of the best in the business, it's just the right size and diameter trimmed with dimpled leather.

Final flourishes include the optional contrast red stitching and seatbelts as well as eye-catching turned aluminium trims.

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.

The difference between aged and dated is best summed up, though, by the excellent usability of the SQ7's cabin controls.

The separate screen for ventilation, for example, makes it simple to adjust seat or vent temperatures without interrupting the main screen's navigation instruction or other media systems.

When using wireless Apple CarPlay and Android Auto the top screen is entirely devoted to the other software with no remnants of Audi's system. It runs smoothly at all times.

Switching back to Audi's system, and there's a lack of contrast to the dark main screen and navigation. The touch targets are huge, though, and the satisfying click of the haptic feedback is welcome when driving. It seems expensive and natural in a world of feel-free touch operation.

Audi's 12.3-inch digital driver's display remains one of the best in the business. Legible and customisable with bespoke sport modes and the ability to show a full-size map, if you wish.

You can keeping devices charged with a wireless pad or there are two USB-C ports under the cushy centre armrest. A 12-volt socket is also available, and two more charge points are found in the back.

If there's one criticism in the front, it's the fairly limited storage. The door bins are big enough for a 600mL bottle but not much more and beneath the armrest the tray is shallow. The only other storage spots are the two cupholders which are the perfect size for a small take-away coffee.

While on the critiques, the drive mode selector is awkwardly hidden near the passenger below the touchscreen.

The seats are amazingly comfortable with ample support and power adjust for everything, including under-thigh length and bolsters. Several massage programs can be accessed through the menus, too.

Continuing the comfortable seating, the SQ7's second row is capacious with plenty of head, leg and toe room even for those over 180cm.

The bench slides forwards and backwards manually and the backrest is adjustable. A fold-down armrest contains two more small cupholders, and there are two separate climate zones, two vents and heated outboard seats.

However, folding and unfolding the second row is a bit complex and quite heavy work with a strange mix between electric and manual movement to access the third row — a Nissan Pathfinder does this better.

Once back there, the third row is passable for adults providing the second row is slid forward.

There are ISOFIX ports and top tether anchors for both power-deployed third row seats, so you can fit up to five children's seats in an SQ7.

The SQ8's second row is still generous but you do lose a small amount of headroom owing to the sloping roof design.

You also sacrifice some boot space, at 608L with five seats and 1755L with the second row folded. That's still a lot but the spacious SQ7's 793L/1921L figures are even better and 295L with all seven seats up is respectable. Both have sturdy 40/20/40 split-fold rear seats.

As the vehicles are equipped with air suspension, owners can raise or lower the boot floor to make it easier to load bulky objects if needed. A power tailgate is standard on both models.

A retractable luggage cover, netted pocket, boot lights and some underfloor storage complete the boot, however both cars lack a spare tyre of any sort. A tyre inflation kit is included.

Audi's range of Q7 and Q8 large SUVs starts at $117,284 for the 45TDI and there's a plug-in hybrid version from $152,284, both before on-road costs. The flagship SQ7 and SQ8 are $174,815 and $178,815, respectively.

The pair is a rare example of a discounted new car, albeit by a slim $585, so you'd expect these behemoths to offer comprehensive standard specification.

Features such as 22-inch alloy wheels, ambient interior lighting, soft close doors, power-adjust heated and ventilated seats, quad-zone climate control, 'Valcona' leather upholstery, a 17-speaker Bang & Olufsen sound system, full-length sunroof, navigation and a head-up display are included.

Naturally, options are available in packs and standalone choices with all vehicles we drove featuring at least one of the expensive box-ticks.

The 'Sensory Pack' seems a logical choice, bundling a 23-speaker, 1920-watt sound system with raising tweeters, 'Dinamica' headlining, massage seats, heated rear seats, Audi's air ioniser and interior perfume, extended leather upholstery and rear sun shades for $14,400.

Another major option is the $10,900 'Dynamic Package' with active roll stabilisation and Quattro Sport rear differential.

Stand-out stand-alone options include HD Matrix LED and Laser headlights combined with customisable OLED rear signatures ($3950) and the black exterior styling packages ($1850, or $2550 for the Plus version).

The as-tested price for the tow pack-equipped ($1500) 'Daytona Grey' car we spent most time in was rather high at $209,215 before on-road costs — that's over $30K worth of extras.

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?

The SQ7 and SQ8 both use a 4.0-litre twin-turbo 'hot vee' V8 petrol after the diesel SQ7 was abandoned in mid-2022.

It is the same engine you'll find in just about every application of this MLB platform, including the Porsche Cayenne, Bentley Bentayga and Lamborghini Urus — though it makes more power elsewhere.

In Audi's two medium-sporty SUVs it produces 373kW at 5500rpm and 770Nm between 2000-4000rpm.

In practice, it's a swelling, punchy engine without much top-end sparkle — though 4.1 seconds to 100km/h is nothing to scoff at.

The V8 also produces a rather splendid soundtrack, striking the right balance between Detroit burble and motorsport bark for this application.

An eight-speed torque converter auto transmission has been retuned for improved shift logic and it remains buttery smooth. It's pleasing enough just manoeuvring slowly around a car park, where you can feel just well calibrated the long travel throttle and transmission logic are.

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.  

With 2340kg to heave around, not even the 48-volt mild hybrid system can save the SQ7's fuel consumption — it's a thirsty beast.

The rated ADR combined cycle (urban, extra-urban) figure is 11.8L/100km and indulging in the ample performance resulted in 16.5L/100km on the trip computer. The SQ8 was much the same.

The SQ7 is certified to tow up to 3500kg (braked), equal to a Toyota LandCruiser or Nissan Patrol.

A fairly large 85L tank gives the SQ7 a theoretical driving range of around 720km from a fill-up. Naturally, 98 octane unleaded is required.

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.

Our drive loop started in South-East Sydney where the SQ7's burbly V8 and air suspension fitted right in, easily soaking up the worst of the concrete expansion joints and sharp-edged potholes.

It is a joy to waft around in the refined SQ7 with its remarkably good vision out the front and back (with 360-degree cameras to help elsewhere). Standard rear-wheel steer allows the back tyres to rotate up to 5.0 degrees, giving the 5072mm long SQ7 a better turning circle (12.5m) than a Q3 small SUV.

Its driven home further by the excellent drive mode customisation. Along with the standard programs, you can set an 'Individual' mode up with various selections for the suspension, steering, powertrain response and exhaust noise.

Following the SQ7, our time in the SQ8 took in some more twisting roads and the combination of 23-inch alloys with firmer suspension settings meant that, even in 'Comfort', 'Auto' or 'Balanced' drive modes, the coupe-styled model had a busier ride.

Both SQ7 and SQ8 featured 'Sport' adaptive air suspension, sitting 15mm lower than normal with the ability to drop the ride height up to 40mm in 'Dynamic' mode or raise it 50mm in lift mode to get out of sticky situations.

Audi chose not to specify the Dynamic pack on the SQ8, though, and the difference is noticeable compared to the SQ7. The coupe SUV rolls a little more in hard cornering and doesn't engage the rear end in quite the same way.

Back in the SQ7, turn in may feel a little less sharp owing to the taller height but the active roll stabilisation and Quattro electronically-controlled limited-slip differential splitting power between the two rear wheels makes for a more confident vehicle with better punch out of corners.

Grip is prodigious and the SQ7 is always in control with 285/35R22 Bridgestone Turanza T005 tyres.

A 2.4-turn lock-to-lock steering system is well-judged, remaining light in Comfort but adding enough weight and precision in Dynamic.

The brakes — 400mm front rotors clamped by six-piston calipers with optional ceramics — are reassuring and feel Autobahn ready. 

The Audi SQ7 with Dynamic Pack is like an Olympic swimmer that's put on some kilos and had a few kids but can still gap his teenage son in a 50-metre freestyle race.

This is perhaps the perfect expression of Audi's 'S' models USPs, being totally normal when pottering despite huge reserves of talent. 

The Audi SQ7 is currently unrated by local ANCAP safety authority but Euro NCAP awarded a Q7 50TDI a maximum five stars in 2019.

It features eight airbags, adaptive cruise control, lane-keep assist, blind-spot monitoring, rear cross-traffic alert, surround-view monitor and exit-warning system to stop occupants dooring cyclists.

The adaptive cruise control is smooth and natural, although we found the lane-keep and lane-trace programs to be a little overbearing. Both can be easily disabled by holding the button at the end of the indicator stalk for about five seconds.

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.

Audi recommends SQ7 and SQ8 owners bring their car in for a service every 12 months or 15,000km.

Service pricing is not cheap, with a five-year package costing $4600 for either model. For reference a basic service plan for a BMW X5 costs $3450 for five years.

Audi has moved to a five-year, unlimited kilometre warranty with owners able to extend that (for a fee) up to nine years with Audi Advantage. An extra two years of warranty and scheduled servicing costs $4360 for the SQ7 and $4160 for SQ8.

Additionally, customers get access to Audi's loyalty programs with event invitations, ambassador experiences and discounts offers from select partner companies.