Mahindra XUV500 vs Skoda Octavia

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 Skoda Octavia has always been impressive in wagon guise and this mHEV variant is no different. While the mild-hybrid set-up adds little to the Octavia package there’s still plenty to like about this wagon. It’s smooth and refined to drive, packed with features and has ample appeal as a value-for-money buy.

It’s no surprise if this wagon is at or near the top of your vehicle shopping list.

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.

A wagon, by its very nature, is a vehicle with a low and long body style. And the Skoda Octavia Select mHEV wagon adheres to that design expectation.

At 4698mm long, 1829mm wide and 1468mm high, it’s low and sleek, especially compared to the taller and bulkier SUVs and utes I usually test, and this wagon’s lower entry/exit height takes a bit of getting used to. It feels like I have to do a contorted yoga pose every time I get in and out of this wagon.

The interior has a premium feel about it, despite bearing fabric seats, expansive use of durable plastic and the like, and it does feel squeezier inside than expected.

In design terms, this Octavia holds its own against mid-sized wagon rivals and even mid-size SUV competitors.

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.

This Octavia has a neat and functional interior with a low-key premium feel about it, even though it’s a lower-spec variant in the line-up.

The front seats are manually adjustable and offer a reasonable degree of comfort and support, and there are enough hard-wearing plastic surfaces and handy storage spaces throughout the cabin to please the fussiest of drivers and passengers.

There are two USB-C outlets and 45W charging upfront and in the rear seat.

Bonus: the multimedia system is easy to pair with your phone and to use in general driving.

Second-row passengers are well catered for with charge points, storage spots and even a small portable bin in the passenger door pocket. That, and the umbrella in the driver-side door, are among the many nice, welcome touches Skoda does so well.

The second-row seats – in a 60/40 split configuration – are comfortable with adequate room for everyone. The fold-down centre armrest has cupholders.

For child seats, it has two ISOFIX points on the outboard seats in the second row and three top-tether anchor points.

At the back, there is a 640-litre boot (when all seats are up and in use) and luggage capacity expands to 1700 litres when the second row is stowed away.

The rear cargo area has a luggage compartment cover, a 12V outlet, net pockets and four tie-down points.

This Skoda has a listed unladen mass of 1388kg and a gross vehicle mass of 1910kg, so payload is approximately 522kg, which is reasonable but not overly generous.

It’s rated to tow 700kg (unbraked) and 1500kg (braked).

As a practical vehicle, this Octavia holds its own against mid-sized wagon rivals and even some mid-size SUVs.

The Skoda Octavia Select mHEV in wagon form has a manufacturer suggested retail price of $43,490, excluding on-road costs. Our test vehicle has optional paint (Graphite Grey Metallic) so it has an RRP of $43,790.

Standard features onboard include a 13-inch multimedia touchscreen system, a 10-inch digital driver instrument cluster, heated front seats, hands-free electric tailgate, keyless entry and driver-assist tech includes adaptive cruise control, lane-keep assist and front and rear cross-traffic alert. 

Exterior paint choices on this variant include Moon White (no extra cost), or choose from Black Magic, Race Blue, Smoky Silver or Graphite Grey Metallic (on our test vehicle), any of which will set you back $300.

Other optional extras include a Signature Pack (which costs approximately $6500) that adds a head-up display, leather interior trim, ventilated/massage front seats and matrix LED headlights to the package.

This wagon offers impressive value-for-money against its rivals, such as the Mazda 6 or Subaru Outback, or even against mid-size sedans like the Hyundai Sonata or Toyota Camry.

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 Skoda Octavia Select mHEV has a 1.5-litre, four-cylinder, turbo-petrol mild-hybrid set-up, with the engine producing 110kW at 5000-6000rpm and 250Nm at 1500-3500rpm. It’s paired to a seven-speed dual-clutch automatic transmission.

This combo generally offers smooth acceleration once you’re underway, but the Octavia wagon takes some urging from initial foot down to fuller vehicular movement and the dual-clutch should cop most of the blame for that.

This wagon’s mild-hybrid set-up includes a 48-volt electric motor and a lithium-ion battery, and this system is designed to assist the engine during acceleration, but this vehicle can’t drive on electric power alone.

It has regenerative braking and allows engine-off coasting, which aims to reduce fuel usage.

While the mild-hybrid set-up adds little to the Octavia package, this powertrain delivers enough in terms of drivability to keep it on level terms with its rivals.

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.  

Official fuel consumption figure on the combined (urban/extra-urban) cycle as 5.2L/100km and on this test I recorded 6.5L/100km.

This Skoda has a 45-litre fuel tank so you could reasonably expect a driving range of about 690km from a full tank.

Worth noting it takes premium unleaded petrol (95 RON minimum).

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.

At 4698mm long, with wheel tracks of 1543mm front and 1535mm rear and 142mm ground clearance, this wagon has a low, squat stance at rest and yields controlled ride and handling on the move.

The driver’s seat is manually adjustable, so you can approximate your preferred position, but because this is a long and low wagon, visibility for the driver is a bit pinched along the sides and at the rear, compared to the view you're typically afforded in a slab-sided SUV.

The Euro-oriented steering wheel controls (indicator stalk on left, windscreen wipers on right) take some getting used to if you’re not already familiar with that arrangement and the cruise control stalk is in an awkward position at the bottom left of the steering wheel column. Annoying.

Otherwise, the Octavia offers a pleasant overall driving experience – smooth, comfortable and refined – except for that aforementioned initial lag from a standing start.

The four-cylinder turbo-petrol engine and mild-hybrid set-up yields enough all-round pep without being too lively and there’s no drastic change in performance when the 48V motor cuts out after assisting acceleration.

Steering is well-weighted and precise at all speeds and with a 10.4m turning circle this Skoda feels highly manoeuvrable around the suburbs and in the city.

The suspension (MacPherson strut with lower triangular links and torsion stabiliser at the front and semi-independent compound link crank-axle at the rear) is firm.

The Skoda’s Laufenn S Fit 2 (205/55x17) all-season tyres are reasonable for urban roads and rough back-country roads. This wagon has a space-saver spare, not ideal but not unusual, either.

The Octavia mHEV is a smooth cruiser and more than holds its own against its rivals.

The Skoda Octavia Select mHEV wagon has the maximum five-star ANCAP safety rating from testing in March 2026.

Standard safety features include eight airbags, Autonomous Emergency Braking (AEB), adaptive cruise control, front cross-traffic assist, front and rear parking sensors, lane keep assist, traffic sign recognition and rear cross-traffic alert.

It has two ISOFIX points on the outboard seats in the second row and three top-tether anchor points.

The level of safety gear onboard here keeps the Octavia easily competitive against its rivals.

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.

Skoda’s seven-year/unlimited kilometre warranty applies to this wagon and it’s pretty impressive.

Roadside assistance is offered and extended for up to 12 months following each completed scheduled service at an authorised dealer.

Servicing is scheduled for every 12 months or 15,000km whichever occurs soonest and the cost per service was, at time of writing, $413 (12 months/15,000km), $707 (24 months/30,000km), $396 (36 months/45,000km), $1090 (48 months/60,000km), $396 (60 months/75,000km), $801 (72 months/90,000km), and $396 (84 months/105,000km).

Service packs (which include the roadside assistance provision) are available and cost $2590 (five years) or $3490 (seven years).

There are 39 Skoda sales and serviced dealers across the country with eight service-only sites in key rural and regional areas.