Mahindra XUV500 vs Mercedes-Benz C43

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.

The new AMG C 43 may lack the drama and excitement we’ve come to expect from the German performance brand, but that doesn’t mean it’s a bad car. Yes, it could be more extroverted and the ride could be improved, but this is still a sharp-looking sports sedan with loads of punch.

This is a car that speaks to its times, with ever-stricter emissions regulations making it harder and harder for car companies to produce loud, wild and charismatic cars. So Mercedes-AMG has worked within those boundaries and come up with a car that retains at least some of those core elements that has made the brand so desirable over the years.

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.

Mercedes has created something of a problem for itself with its decision to introduce AMG styling packages for the majority of its range, including the C-Class.

It means the C 43 has to walk a fine line between looking like a unique AMG model, rather than just a C300 with a bodykit and not out-doing the C63.

To that end it has AMG’s now familiar grille with vertical bars, the unique and complex-looking 20-inch alloy rims and a small lip spoiler on the boot. But otherwise it is surprisingly understated for an AMG, lacking the more obvious and muscular stance of previous AMG offerings.

Inside, there’s a similar theme, with the typical Mercedes-Benz luxury appointments but with a sportier, AMG twist. The steering wheel is chunky and comes with AMG branding, metallic shift paddles and a pair of rotary dials/buttons that allow you to alter the various drive modes and settings.

The one on the right allows you to switch between the pre-set Comfort, Sport, Sport+ and Individual modes, while the one on the left can scroll between the various individual aspects to tailor the settings to the conditions.

In typical modern fashion the design is tech-laden, with a digital display for the instrument panel (that can be switched between various graphics) and a large, tablet-style central multimedia touchscreen that controls the majority of the car’s non-driving functions.

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 new C-Class has grown slightly in size compared to the model it replaces, most notably with a 26mm increase in the wheelbase which you can feel in the cabin.

The front seat space is good, with excellent adjustability for the power-adjustable seats and steering column. I had no trouble finding my ideal seating position which makes for a more enjoyable and uncompromised driving experience.

Rear space is a bit tighter (which is typical for this segment/size of vehicle), but thankfully the standard seats do have very deep sculpting in the backs which allow for more knee space and foot room.

However, at approximately 180cm (six-foot), I wouldn’t like to sit behind my seating position for long periods as my knees were touching the seat back, and headroom is compromised with the panoramic glass roof.

In terms of small item storage there’s a lidded console box in between the front seats as well as a pair of cupholders and a small tray where you can place your mobile phone.

It’s worth noting, though, that early examples of the C 43 in Australia do not have a wireless smartphone charging pad, with that reportedly being introduced from February production.

While that’s good news, it’s not really competitive in this day and age to offer a car costing six-figures without such technology.

There’s also only a single USB-C power outlet in the front, which is another disappointment, but there is a pair in the back.

Mercedes does win some points back for a respectable 455-litre boot, which has a nice wide load opening that will make packing luggage easier.

We’ll get to the major change under the bonnet shortly, but another significant alteration for this latest C 43 is the price.

It now starts at $134,900 (plus on-road costs), which pushes it well above its market rivals, the BMW M340i xDrive and Audi S4, which start at $104,900 and $106,200, respectively.

However, Mercedes has added more technology under the bonnet and loaded the C 43 up with standard equipment, including its '4Matic' all-wheel drive system, adaptive damping, rear-wheel steering and 20-inch alloy wheels.

In terms of creature comforts, the C 43 is well-appointed, with leather upholstery, a head-up display, augmented reality navigation, a panoramic sliding sunroof, and a Burmester 3D surround sound system.

There are two option packages for the C 43. The 'Digital Light Package' costs $2400 and adds Multibeam LED headlights with 'Ultra Range' highbeam, 'Adaptive Highbeam Assist Plus' as well as active light function and cornering light function.

The 'Performance Ergonomics Package' includes AMG Performance front seats, an AMG Performance steering wheel in Nappa leather and microfibre and the 'AMG Track Pace' system for an additional $5200.

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 biggest talking point about this new car is the engine, with AMG downsizing from the old C 43’s six-cylinder to a 2.0-litre four-cylinder turbocharged petrol engine.

But it’s not just any turbocharged four-pot, because it is fitted with technology that Mercedes claims has been inspired directly from its Formula One team.

While the F1 team engine facility is based in England, this engine was designed and developed by the Mercedes-AMG team at its Affalterbach headquarters, but the concept of the electric turbocharger reportedly comes from the engine that powered Lewis Hamilton to multiple world championships.

The electric exhaust gas turbocharger - to give it its official name - uses a small electric motor on the turbocharger shaft to spin up the blades without having to wait for any exhaust gases to pass through it first.

To power the electric turbo the C 43 is equipped with a mild-hybrid 48-volt electrical system.

Mercedes claims this means reduced lag and improved throttle response for a sportier driving experience. 

It also helps make this small engine produce big amounts of performance, with AMG extracting 300kW of power and 500Nm of torque from this 2.0-litre, which is more power than the previous six-cylinder C 43 managed.

The engine is paired to a nine-speed multi-clutch transmission, which isn’t a dual-clutch with a pair of clutches operating on every second gear ratio, but instead uses a “wet start-off clutch” for better take-offs and smoother shifting on the move (at least in theory).

Power is sent to the road via all four wheels thanks to Mercedes’ 4Matic all-wheel drive system.

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.  

Despite the smaller engine you can hardly call the C 43 miserly, with a claimed combined urban/highway cycle rating of 9.1-litres per 100km. That’s only a 0.2L/100km improvement over the old six-cylinder.

On test, which included a return trip from Sydney to Bathurst via motorways and some dynamic back road driving, we saw a return of 11.8L/100km on the car's onboard computer.

While hardly hybrid-worrying, it’s impressive to think that driven modestly, such a potent engine can return a single-digit fuel figure.

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.

Let’s start with the good news. The new Mercedes-AMG C 43 is a quick car. The engine may be small in size but the electric turbocharger does its thing and provides plenty of punch.

You can get a performance boost, too, thanks to the belt-driven starter generator, which acts as a mild hybrid and gives you a surge of 10kW for a brief period if you need a sudden burst of extra speed.

The chassis is well-sorted, too, at least from a dynamic point-of-view. The rear-wheel steering can provide up to 2.5 degrees of turning, which improves handling at speed and manoeuvrability when parking.

However, there are some less-impressive elements to the C 43, too. The obvious one is the drama, or rather the lack thereof.

As I said at the beginning, the C 43 has never been as wild or raucous as the V8-powered C 63, but when you buy an AMG there’s a rightful expectation that it will provide some thrills.

The C 43 simply doesn’t have that character about it. Yes, it’s fast, but it produces that speed with efficiency rather than excitement.

And it’s not an engine size problem, because even the 2.0-litre four-cylinder A 35 and CLA 35 offer more ‘wow factor’ than the C 43.

Yes, the engine makes noise under acceleration (and it can be altered between discreet and sporty) but even at its best it sounds muted and lacks the evocative tone of a V8 or six-cylinder engine. 

Another disappointment is the transmission calibration, with the gearbox awkwardly shifting out of first gear on multiple occasions during our test drive.

In the taller gears it felt smooth enough cruising along, but given its low speed shifts we’d like to spend more time in the urban environment before passing final judgement. 

The other notable element of the driving experience we struggled with was the ride quality. While fine on the smoother motorways, our test drive included time on some patchy country back roads and the C 43, even in the ‘Comfort’ suspension setting, was simply too firm.

Riding on low profile tyres, the adaptive dampers struggled to isolate the cabin from the imperfections in the road, leading to a fussy ride at times.

Overall the C 43 is a good car, but it feels like there are still some areas where Mercedes could improve it to make it really live up to the AMG badge.

The C43 gets a comprehensive list of safety equipment that leaves little out. Obviously there are the usual passive safety items, like 10 airbags, including dual-front combined pelvic/thorax airbags and a front centre bag that drops between the front seat passengers to minimise the chances of a head clash.

Also included as standard is autonomous emergency braking front and rear (covering speeds between 7.0-200km/h), adaptive cruise control with active stop/go, a 360-degree parking camera, 'Active Parking Assist', 'Active Lane Keeping Assist', 'Blind Spot Assist' and, of course, anti-lock brakes with 'Brake Assist' and 'Adaptive Brakes' with Hold function and electronic stability control.

Also included are dusk-sensing LED lights, rain-sensing wipers and run-flat tyres with tyre pressure warning.

The C43 also comes equipped with Mercedes’ 'Driving Assistance Package Plus', which adds even more safety gear. This includes 'Active Blind Spot Assist', 'Active Brake Assist with Cross-Traffic Function', 'Active Emergency Stop Assist', 'Active Lane Change Assist', 'Active Lane Keeping Assist', 'Active Steering Assist', and 'Active Stop-and-Go Assist'.

While the C43 hasn’t been specifically crash-tested, the latest C-Class was rated by ANCAP with a five-star score for all models except the upcoming C 63 S E Performance.

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.

The C 43 is covered by Mercedes’ five-year, unlimited kilometre warranty, which has become the new standard for the luxury car market.

Service intervals for the car are at 12 months/25,000km, which is on par with industry standard.

Mercedes-Benz Australia will offer a service plan for the C 43, prices were yet to be confirmed at the time of publication but the company has indicated it will be similar to the C300. 

That means $550 for year one, $900 for year two, the third service costs $1000 and the fourth year service costs $2450 - for a total of $4900 for the first four years of ownership.