Mahindra XUV500 vs BMW 218i

What's the difference?

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Mahindra XUV500
Mahindra XUV500

2018 price

BMW 218i
BMW 218i

$46,900 - $69,900

2025 price

Summary

2018 Mahindra XUV500
2025 BMW 218i
Safety Rating

Engine Type
Diesel Turbo 4, 2.2L

Turbo 4, 2.0L
Fuel Type
Diesel

Premium Unleaded Petrol
Fuel Efficiency
6.7L/100km (combined)

7.7L/100km (combined)
Seating
7

5
Dislikes
  • Underwhelming safety
  • Steering that requires plenty of guesswork
  • Cheap-feeling interior

  • Expensive
  • Firm ride on larger wheels
  • No spare wheel
2018 Mahindra XUV500 Summary

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.

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2025 BMW 218i Summary

Sometimes a name change can make all the difference.

Google used to be called “Back Rub”. The Spice Girls started off as “Touch”. And – particularly in Germany – some premium sedans became known as “coupes”, as they struggled to stay popular against SUVs.

Case in point: what is essentially a 1 Series hatchback with a boot has been more glamorously badged the “2 Series Gran Coupe” since 2020.

Still following the sedan script with four doors, it’s BMW’s tilt at Mercedes’ booted A-Class hatch, the rakish CLA, unveiled early last decade as the Concept Style Coupe and now in its third series-production iteration – though since 2019 a more conservatively styled A-Class Sedan has also existed, that goes up against Audi’s A3 Sedan.

But we digress. Now there’s a “new” 2 Gran Coupe, coded F74, though it’s really a heavy facelift of the superseded F44. Oh, and the ‘i’ no longer exists in the badge, so (M-enhanced models aside) it’s just numbers from here on in. 218. 220. M235.

Regardless of names, does it live up to the BMW promise?

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Deep dive comparison

2018 Mahindra XUV500 2025 BMW 218i

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