What's the difference?
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.
GWM’s Tank 300 struck a chord with Australian buyers when it launched in 2023. The rugged, boxy design, serious off-roading ability and unbeatable value for money - especially compared with similar models like the Jeep Wrangler - won it a number of new fans.
But something was missing. With an uninspiring petrol engine and a patchy hybrid powertrain the only options, the Tank 300 was sorely missing a diesel.
GWM itself says about 75 per cent of models in the off-road-focused large and upper-large SUV segments are made up of diesel-powered SUVs, so it was missing out on a chunk of sales.
Thanks to some serious nudging from GWM Australia and New Zealand, the Chinese parent company saw the potential and have added a diesel engine to the mix. This is the same diesel unit found in the GWM Cannon and Cannon Alpha utes.
Is the diesel now the pick of the Tank 300 range? Or should you look at another oil-burning 4x4?
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.
The diesel is now the pick of the Tank 300 range. It’s the best fit for this vehicle and offers greater driver engagement than the petrol or hybrid.
It also has genuine off-road chops while still managing to suit family life.
While it could benefit from further refinements to on-road behaviour, cabin noise and the ADAS systems, none of these are deal breakers.
The fact that it is priced so keenly against some excellent competitors and is stacked with standard gear adds to the Tank 300’s appeal.
Note: CarsGuide attended this event as a guest of the manufacturer, with 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.
The only visible difference between the diesel and the petrol or hybrid 300s is a 2.4T badge. So you get the same boxy exterior as before.
It’s somewhat derivative and gives more than a nod to Jeep, but the design has intent - it looks capable off-road and for most people that’s enough. Luckily it is capable off-road. More on that later.
Inside the upright, shelf-like dash is appealing. I like that everything is nicely integrated, like the dual 12.3-inch screens which flow nicely into one another.
The big T-shaped three-spoke steering wheel looks cool and the aeronautical air vents are clearly inspired by Mercedes-Benz.
The chunky metal-look plastic glove box cover adds extra visual flair and the stitching throughout elevates the cabin further.
However, the futuristic looking gear shifter is chunky, takes up too much space and is unnecessary.
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.
Up front the Tank 300 offers a commanding view of the road and it’s easy to find your perfect driving position thanks to the power-adjustable seats.
Those seats have good side bolstering but could do with a little extra cushioning for the thighs. The Nappa leather-appointed seats in the Ultra look and feel lovely.
Storage is average for the segment with room for larger bottles and additional flat items in the door pockets, and a well-sized central bin that also houses two cupholders, although they sit low in the cavity and two coffees sit awkwardly together.
The Tank has one USB-C port for charging only but another USB-A port up front for connectivity. You shouldn’t need that given Apple CarPlay and Android Auto is wireless.
Keen off-roaders will have fun with the extensive Tank Expert Mode in the multimedia screen, which allows you to individualise your 4WD experience.
Beyond that the screen is neatly laid out, responsive and easy to use. GWM has come a long way when it comes to in-car tech. The icons on the digital instrument cluster, however, are still too small.
There’s ample leg room in the rear, with space between my knees (I am 184cm tall) and the rear of the front seat, and enough toe room. It doesn’t feel enormously spacious across the rear row but three kids should be comfy. Headroom is enhanced by a scalloped section of the roof specifically for rear-seat passengers, but it doesn’t leave a huge amount of space for taller people.
The rear seat bench is flat but the backrests have some support and overall the seats back there are comfortable.
You’ll find lower rear-seat air vents, map pockets, a fold-down central arm rest with two cupholders, room for small bottles in the doors and two USB-A ports.
The boot can take 400 litres with all seats up and 1635L with the rear seats folded. That figure is measured from the floor to the top of the rear seats.
Jeep says the Wrangler has 898L capacity with all seats in place but that is measured from the floor to the roofline.
There is no under-floor storage in the 300’s boot and the full-size spare wheel is housed in traditional 4x4 fashion on the tailgate.
Make no mistake, this Mahindra kills the competition on price. The entry-level W6 version will cost you a lean $25,990, while the fruited-up W8 version will set you back $29,990. You can even have an AWD W8 for $32,990. The best part? All of those are drive-away prices.
Go for the W6, and you can expect 17-inch alloy wheels, cloth seats, air-con with vents (powered by a second compressor) in the second and third row, cornering headlights with DRLs, front and rear fog lights, cruise control, rear parking sensors and a 6.0-inch multimedia screen linked with a six-speaker stereo.
Spring for the W8, and you'll add leather seats, a reversing camera, tyre-pressure monitoring and a bigger, 7.0-inch screen with standard sat-nav.
One of the key selling points across GWM’s entire range is value for money, and the Tank 300 has always had that in spades.
As with the petrol and hybrid 300, the diesel is offered in two well-specified model grades - Lux and Ultra.
At $47,990 drive-away, the Lux diesel is $2000 more than the Lux petrol, but $3000 cheaper than the Lux hybrid.
The Ultra diesel, at $51,990, is $1000 pricier than the petrol equivalent and $5000 more affordable than the hybrid Ultra.
The GWM Tank 300 diesel Lux is also more affordable than equivalent grades of a number of ladder-frame 4x4 SUV rivals like the Isuzu MU-X, Toyota Fortuner, SsangYong Rexton and the Ford Everest.
It’s also significantly more affordable than the Jeep Wrangler, with the Tank 300 Lux costing about $30,000 less than a Wrangler Unlimited Sport S.
Note however that many of those models - except the Wrangler - have the option of seven seats, whereas the Tank is strictly a five-seat proposition. If you want a third row, check out GWM’s Tank 500.
There are cheaper off-road large SUVs out there – the LDV D90 and Mahindra Scorpio. But the Tank 300 is a more refined and higher-quality offering than those models.
Standard gear in the Lux includes 17-inch alloy wheels, synthetic leather seats and steering wheel, power-adjustable front seats, dual-zone climate control, seven-colour ambient lighting, keyless entry and start, a sunroof, power-folding mirrors, paddle-shifters, a nine-speaker audio system with digital radio, built-in sat-nav, and a pair of 12.3 inch digital displays with wireless Apple CarPlay and Android Auto.
It also gets roof rails, side steps, privacy glass, all-terrain mode selection and a rear diff lock.
The Ultra upgrades to 18-inch wheels, Nappa leather-accented seats, heated and ventilated front seats, a heated steering wheel, more adjustment for the front seats and a memory setting, a massage function for the driver’s seat, a wireless phone charger, 64 colours in the ambient lighting suite, and a nine-speaker premium audio system.
There is nothing obvious missing from the standard features list, but I don’t know why a wireless device charger is limited to the top grade.
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 big news with the Tank 300 is, of course, the new engine.
It is a 2.4-litre four-cylinder turbocharged diesel engine borrowed from the GWM Cannon and Cannon Alpha utes.
It pumps out 135kW of power and 480Nm of torque. That’s more torque than an MU-X but not as much as an Everest.
It is paired with a nine-speed automatic transmission and has part-time four-wheel drive.
If you need to tow, the diesel has a 3000kg towing capacity, which is 500kg more than the hybrid and petrol. It can’t beat the 3.5-tonne towing capacity of the MU-X and the Everest.
Payload has also increased compared with the petrol and hybrid, up from 400kg to 600kg.
GWM says it conducted extensive testing internationally but also in Australia to improve towing performance. There are approximately 20 different parts compared with the other powertrain variants to get the best out of towing in the diesel.
A rear diff lock is standard on both grades while the Ultra gains a front diff lock.
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.
The diesel Tank 300 consumes 7.8 litres of fuel per 100 kilometres on the official combined cycle, which is better than the 9.5L figure for the petrol and the 8.4L quoted for the hybrid.
That figure also sits somewhere between a 2.0-litre bi-turbo Everest (7.1L/100km) and a 3.0L MU-X (8.3L/100km).
It has a 75-litre fuel tank and GWM claims an NEDC range of about 950 kilometres. GWM says the Euro 5 engine does not require Adblue.
Given the restrictions of a media launch, we did not obtain real-world fuel use figures.
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.
I last drove a Tank 300 in late 2023 and it was the hybrid variant. While the hybrid has some positives, its driving characteristics were not high on that list.
It had an erratic throttle response, hesitation on take-off and it felt underdone.
In contrast, this new diesel variant just feels like the right fit for this SUV.
There is slight lag accelerating from a standing start, but the powertrain is torquey and there’s plenty on tap when overtaking or just increasing speed when already on the go. GWM has not provided a 0-100km/h time.
It is clear you’re in a diesel as soon as you turn on the ignition - it has that typical diesel rattle, but it is not as unsophisticated as some oil-burners I have driven.
The cabin could do with some extra insulation with wind and tyre noise detected, but it’s hardly a deal breaker.
Given the vehicle’s size, heft (nearly 2.3-tonne kerb weight) and the fact it’s shaped like a brick, the 300 holds its nerve on winding stretches of road with only a little body roll. In saying that, best not to treat it like a Mini Cooper on your favourite twisty road.
Ride quality is a bit mixed. We only drove the Ultra on 18-inch wheels and while it manages to soak up bumps, the ride is jittery, and that’s even more evident on uneven road surfaces.
Steering is heavily weighted and a little vague, but fine for a big off-roader, and the brakes need to be pushed hard.
One quirk is the indicator - it appears to be a one-touch setup for indicating to change lanes, but then the indicator stays on. I tried several times to test this, even flicking it to the opposite side to turn it off and it was very stubborn.
The good news is it appears GWM has toned down the awful indicator sound of its earlier models and is now much more subtle.
So on-road the Tank 300 is more than competent, and a much nicer vehicle to drive in an urban setting than a Jeep Wrangler, for example.
We also drove it briefly on an off-road trail, and in low range the Tank 300 proved that it can do what it says on the box.
I’m no off-roading expert and there are much more challenging trails out there, but I had confidence that the Tank 300 would not let me down traversing the many chunky rocks, massive holes and fallen tree limbs.
Expect dual front, front-side and curtain airbags (though the latter don't extend to the third row of seats), along with rear parking sensors and ESP. Stepping up to the W8 trim adds a reversing camera with dynamic guidelines. The XUV500 was awarded a four-star (out of five) ANCAP assessment when tested in 2012.
ANCAP awarded the Tank 300 a five-star crash safety rating from testing done in 2022, scoring highly across all four of the major test categories.
GWM says it is waiting to hear from ANCAP but expects the diesel to be covered by the same rating.
As well as seven airbags including a front centre bag, the Tank 300 has a long list of safety gear covering both the Lux and Ultra.
There’s a suite of collision mitigation systems that includes auto emergency braking (AEB), lane departure warning, lane-keep assist, emergency lane keep, lane centring, front and rear collision warning, front and rear cross-traffic alert and lane change assist.
It also has driver fatigue monitoring, a rear seat child monitor, door opening warning, adaptive cruise, traffic sign recognition and hill-descent control.
I noted this in my recent GWM Haval H6 GT PHEV review, but GWM has made consistent tweaks to improve its advanced driver-assist systems (ADAS) and as a result they are less intrusive than they were when the Tank 300 launched in 2023.
There is still the occasional tugging of the wheel but it’s much less of a tug-of-war than it once was.
For the first 45 minutes of our test drive there was an annoying beep every 10 seconds that my co-driver and I could not identify. There was no icon on the driver display to indicate that it was a lane departure warning or speed limit alert, but eventually it just stopped. We still have no idea what it was but it was, thankfully, not present in the vehicle we drove in the second half of the launch drive.
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.
GWM covers the Tank 300 with its seven-year/unlimited-kilometre new-vehicle warranty, which is an impressive offer.
You are covered for seven years of roadside assist and the Tank is offered with a seven-year capped-price servicing program.
GWM is yet to confirm the Tank 300 diesel’s servicing offer (including pricing), but expect a service schedule similar to the Cannon ute with the same powertrain.
That means the first service might be required at 5000km or six months and beyond that it will need a service every 12 months or 10,000km, whichever occurs first.