What's the difference?
There are around 30 different models fighting for your attention in Australia’s medium SUV segment. More than double that if you include premium options. In other words, there’s overwhelming choice.
Some of the most popular options include Toyota’s RAV4, the Mazda CX-5, Kia Sportage and Mitsubishi Outlander, with a bunch of Chinese brands climbing up the charts.
But have you ever considered a Mahindra? The Indian carmaker has been operating in Australia for close to 20 years and the product line-up has improved considerably.
Case in point, the MY25 Mahindra XUV700. A replacement for the unloved XUV500, it’s just come in for a refresh adding new interior trim and tech features and it’s still affordable.
But is it worth taking a chance on the up-and-coming brand? Read on to find out.
Back in 2022 a friend asked me if they should buy the then-new BYD Atto 3. My advice was to avoid such a new brand, because despite positive first impressions of the electric SUV I couldn’t comment with any certainty on the long-term prospects for BYD.
Well, fast forward to 2026 and things could not be more different. No brand exemplifies the seismic shift in the local car industry more than BYD.
It has emerged not only as the clear leader of the pack from the Chinese car brands, but has done so by taking risks and offering some unusual products. This new Atto 3 Evo is a prime example of that, because while it looks almost-identical to the old model, it has huge changes underneath.
When I say ‘huge’ I mean major upgrades like all-new, 800-volt underpinnings, bigger batteries and even a switch to rear-wheel drive - at least for one model.
BYD is selling one model, with the same name but two very different powertrains and layouts. It highlights the radical changes brought on by the electric revolution in the car industry and demonstrates the flexibility of these platforms compared to internal combustion engine (ICE) vehicles.
And also explains why BYD is no longer just a newcomer with an uncertain future but rather a well-established member of the mainstream market.
But would I recommend buying this new Atto 3 Evo? Read on…
The Mahindra XUV700 is a solid, well-rounded family SUV. It has a practical cabin with a usable third row and a punchy turbocharged powertrain. The Indian manufacturer needs to address a few things like interior quality and some ADAS calibration and there’s more work to do when it comes to ride and handling. But overall this seven-seat SUV represents exceptional value for money against some pricier rivals and should be on more consideration lists.
So, would I recommend this new Atto 3 Evo to my friend, or indeed anyone in the market for a mid-size electric SUV?
While it may look largely the same as it did back in 2022, the Atto 3 is now a far more compelling proposition than it was then. Certainly BYD has established itself in the market and that means there is more certainty for buyers.
But this new Atto 3 Premium is a big leap forward when it comes to the driving experience. And while that’s not likely to be a huge factor for most mid-size electric SUV buyers, given the price has only crept up marginally (by modern standards) it remains competitively positioned.
For context, the Leapmotor C10 is another mid-size, rear-wheel drive electric SUV from China and it is even more expensive than the Atto 3 and is, to be blunt, nowhere near as good.
If BYD continues to produce cars this good there’s no reason to believe it won’t be a major player for years to come.
Note: CarsGuide attended this event as a guest of the manufacturer with accommodation and meals provided.
The XUV700 is a reasonably handsome vehicle in the metal. It has a distinctive look that ensures it is immediately identifiable as a Mahindra. It is a clear evolution of the XUV500 it replaces, but far more coherent.
It has a typical SUV shape but in profile the bonnet looks short and it has a big glasshouse with a kicked-up window line from the C-pillar back.
Front on the unique headlights surround an appealing six-bar grille with the cool Mahindra badge front and centre.
The rear features stretched and pinched tail-lights and the XUV700 sits up high on the road.
Inside the cabin is neat and the dash has an uncomplicated layout. It’s not the world’s most visually appealing interior but it doesn’t get anything wrong. Although the steering wheel feels a bit cheap.
The lovely dark grey interior is broken up with a light grey upper half and there’s stitching on the seats, dash and steering wheel. There are plenty of piano black inserts but it's not overdone.
Despite the major changes underneath, BYD hasn’t really changed much from a design point-of-view. Which is a trend for the brand, with the 2024 update also focusing primarily on improving technology rather than the looks.
Externally there is a new lower bumper, which has some subtle changes to its air-intakes, extended daytime running lights, slightly slimmer side skirts and a reshaped rear spoiler.
Inside there are a few minor differences, with the gear selector moving to the steering column to create more storage space in the centre console, and the steering wheel is a new design.
The other notable change is the driver instrument display, which has grown from five- to 8.8-inch.
There’s also a new grey interior colour trim, which looks more premium to this reviewer’s eyes than the blue/white cabin of the older model.
And, for better or worse, the Atto 3’s most memorable feature, the ‘guitar strings’ on the door, remain. While they may not be to everyone’s taste, there is an argument to be made that BYD should be acknowledged for not making the simplest/cheapest cabin possible.
The Mahindra boasts a versatile, practical cabin - not something all mid-size seven-seat SUVs can claim.
This grade has electric ‘smart’ door handles that pop out when the car is unlocked. They’re not super easy to grab and feel a little gimmicky.
The sunroof has a solid power-operated blind, unlike an increasing number of models that come with a flimsy sheer blind or no blind at all, which is unimaginable in our hot Australian climate. Thank you, Mahindra!
Another cool feature is the extendable sun-visors that are great at blocking out sun at the front or side, especially on longer drives.
A chunky rear centre headrest impedes rear visibility, but it is easily removed. However the rear outboard headrests are also big and that impacts vision out the large rear side windows.
Great to see Mahindra has retained physical controls for the air conditioning, although if you want to adjust anything digitally, you can via the central screen.
Sitting under that and the air vents are buttons for the reversing camera, hazard lights and other controls, then there’s a wireless phone charger, an extra little slot for your phone and two USB-A ports. No USB-C up front in the XUV700.
There’s decent storage up front with two compact, squarish cupholders in the console, a small central bin with a handy rubber key holder, while the glove box is a decent size and will fit more than just the manual.
Bottle storage in the front doors is excellent. The tall CarsGuide bottle fits easily and there’s extra storage for a bunch of other items.
The front seats are on the firm side but the side bolstering is good, helping you feel nicely secured. The base makes you feel like you’re sitting on the car rather than in it. There’s not a great deal of adjustability - you can’t extend the under-thigh cushion - but the Mahindra has Mercedes-Benz-style controls on the door.
The multimedia screen houses a lot of functions. If you tap the bottom of the screen the climate controls including seat heating pop up. There are more functions if you tap the top of the screen like sound, camera view and the like.
The multimedia screen homepage has tiles, one says ‘Fun in XUV700’ (for Android Auto, Apple CarPlay and radio) and the other says ‘Fun with XUV700’ (vehicle performance).
Driver assist functions are accessible via the driver’s instrument display using the steering wheel-mounted controls and you can change the intensity of cruise control and lane keep assist or turn off functions like traffic sign recognition and smart pilot assist.
There are a few cons up front. The indicator sound is awful and makes it feel cheap. There are some quality issues, like the flimsy panel to the lower right of the steering wheel that’s home to the auto stop-start. It feels like it’s going to fall off. And some of the fabrics don’t quite line up.
The device charger could do with a fan as my phone gets super hot charging on the pad, while the ‘Siri’ talk-to-text function of Apple CarPlay is patchy.
In the second row, the legroom is decent and while there’s not acres of room I don’t feel cramped sitting behind my 183cm (six-foot) driving position. A tiny transmission tunnel means good centre seat legroom. There’s a lever on the front passenger seat back allowing rear passenger behind to move that seat forward.
Headroom is also decent without being ample. There’s about an inch between my head and the roofliner.
The window line is low enough for small children to see out but not so low you feel like you’re sitting on the car.
The rear seating row is comfortable enough but the backrests - which recline - are flat.
You’ll find rear knee-level air vents, one USB-C port (the only ‘C’ port in the car) and a pair of map pockets, a phone slot under the vents, a centre armrest with two cupholders and loads of door storage for big bottles and more.
For child seats, the two outboard seats have ISOFIX anchors and there are two top tethers as well.
Access to the third row is much easier than I expected for a mid-size seven seater. The passenger-side single outboard seat tumbles flat then up, leaving plenty of space to get into the rear. There’s even a grab handle to assist.
Headroom isn’t great back there for me, but again, I am six-foot tall. A kid will be fine. There’s a surprising amount of legroom and toeroom.
Third-row occupants have access to cupholders and air vents on both sides, a fan speed dial, speakers and a 12-volt outlet that is also accessible from the boot when the seats are lowered.
The fact the curtain airbags cover the third row is a big tick. Overall, a solid third-row experience.
There’s a handy plastic lever on the rear of the seats to lower and raise the third row easily. They don’t quite fold flat into the boot floor so they sit up a little, but don’t intrude on boot space.
It looks like there is a cargo cover option but it wasn’t fitted to this example of the car. There are lots of hooks in the boot to hold bags, but note there is no power tailgate - it’s a manual operation in the Mahindra.
You also get a temporary spare wheel housed externally on the underside of the car.
One thing I can’t tell you unfortunately is the boot volume. Mahindra doesn’t provide those figures. I can say that when all three rows are in place, there is not much room behind the third row. Just enough for three backpacks or a few bags of shopping in a row. When the third row is lowered, there’s ample luggage space.
The new driver instrument display is a big improvement. Frankly, the old screen was quite small and provided limited information compared to this newer, larger display.
The 15.8-inch multimedia touchscreen came with the last update and remains a relatively straightforward system to use. However, the need to take your eyes off the road to adjust controls for the air-conditioning is unnecessary and could be fixed by the simple addition of physical controls.
The decision to move the gear selector to the steering column liberates a good amount of space between the front seats.
There is now room for two smartphones to sit side-by-side (although only one wireless charging pad), as well as two cupholders and a lidded console box.
Space inside the cabin obviously remains the same, with good room for what is a small (or at least a smaller mid-size) SUV.
Cargo space, on the other hand, is changed. The Dynamic measures 434-litres, which is almost identical to the previous model. Things are different for the Premium with the shift to the rear-mounted motor, with the rear boot measuring 490L plus there is now a 101L under bonnet storage space.
The Mahindra XUV700 is offered in two model grades, both powered by the same petrol engine. It all kicks off with the AX7 from an affordable $39,990, drive-away.
The focus of this review is the AX7L which tops the range at $42,990, drive-away, which is still great value.
At this price the Mahindra undercuts most mainstream medium SUVs like the Toyota RAV4 and Mazda CX-5 and lines up more closely with the GWM Haval H6 and MG HS from China.
But unlike most of the mid-size SUV set, the XUV700 has a third seating row. The only other offerings in this category to boast that option are the Honda CR-V, Mitsubishi Outlander and Nissan X-Trail, - all of which are more expensive for an equivalent seven-seat grade when factoring in on-road costs.
For the model year 2025 update, both Mahindra XUV700 grades gain all-black interior trim, while the AX7L updates to wireless Apple CarPlay and Android Auto, as well as ventilated front seats with memory settings for the power function.
Standard gear in the AX7L includes a panoramic sunroof, dual 10.25-inch screens, synthetic leather trim, keyless entry and start, a 12-speaker audio system, wireless charging and a leather steering wheel.
You also get a 360-degree surround-view monitor, Bluetooth, rain-sensing wipers, dual-zone climate control, 18-inch alloy wheels and an electronic park brake.
The only option available is premium paint at $495 extra, including the 'Midnight Black' shade on our test car.
This isn’t top-grade luxury car levels of standard gear, but there's very little that’s missing and for $43K, that’s impressive.
BYD has taken this opportunity with the major update to make some tweaks to its price and positioning. The line-up has been changed with the Dynamic name replacing Essential on the entry-level model, while the flagship remains the Premium.
The Dynamic starts at $41,990 and the Premium at $46,990, both prices exclude on-road costs. Notably, both of those are a jump up from the out-going model, which started at just $39,990 for the Essential and $44,990 for the Premium.
However, there are some good reasons for the jump, which we’ll detail in a moment. But the overall level of standard equipment is good, so the value proposition remains appealing.
2026 BYD Atto 3 Evo Dynamic standard equipment
2026 BYD Atto 3 Evo Premium standard equipment
The XUV700 is powered by what Mahindra calls its ‘mStallion’ 2.0-litre, four-cylinder, turbo-petrol engine delivering 149kW of power and 380Nm of torque. These are solid outputs and the only petrol-powered mainstream rivals that come close to those figures are the Kia Sportage/Hyundai Tucson mechanical twins, with their 1.6-litre turbo punching out 169kW/350Nm.
The Mahindra’s engine is paired with a six-speed automatic transmission driving the front wheels only, so no all-wheel-drive option here.
The Dynamic retains the same front-mounted, front-wheel drive electric motor as the Essential, which provides 150kW/310Nm of performance.
The Premium, on the other hand, gets an entirely new underpinning, with BYD’s new ‘e-Platform 3.0’ chassis, which introduces 800V electrical architecture (compared to 400V for the Dynamic). This includes a larger battery but also a switch to a rear-mounted, rear-wheel drive motor that makes 230kW/380Nm, which is a sizeable bump from the Dynamic.
The XUV700 is only available with that petrol engine so no fuel-saving hybrid or plug-in hybrid options for now.
It’s also on the thirsty side with an official combined (urban/extra-urban) cycle fuel use figure of 8.3 litres per 100 kilometres. That’s more than petrol versions of the Mitsubishi Outlander and Nissan X-Trail.
After a week of mixed but mostly urban driving, the trip computer showed an average of 8.5L/100km, but my own calculation based on real-world use at the fuel pump came out at 11L, so a bit of a discrepancy there.
Naturally, the changes to the motors and platform also mean some major changes to the batteries and driving range.
The Premium now features a 74.8kWh lithium iron phosphate (LFP) battery, which allows for a claimed range of 510km, up from the 420km previously offered by the pre-updated model.
The Dynamic, however, has the 420km range, as it now uses the same 60.4kWh LFP battery as the old Essential Extended Range.
The previously available 49.9kWh battery, that had 325km of range, is now dropped. So, while the Dynamic technically costs more than the previous Essential, it comes with a bigger battery so you’re getting a higher specification vehicle.
BYD claims the charging speed has been increased thanks to the new 800V architecture. The Premium is now capable of taking up to 220kW of DC charging, which means it can get to 80 per cent capacity in as little as 25 minutes.
The Atto 3 Evo also features vehicle-to-load (V2L) functionality, which means you can draw power from the car’s battery to power small electronic devices if needed.
On the road the Mahindra has some clear pros and cons. Overall, it’s a more polished performer than you might expect.
The turbocharged engine sounds good when pushed and is a punchy unit, delivering linear acceleration and getting to speed quickly, mostly without fuss. The 235/60R18 MRF Wanderer tyres have a tendency to chirp when accelerating hard and the XUV700 would benefit from higher quality rubber.
The six-speed auto transmission works well with the engine, delivering smooth shifts but it can hold gears on downhill runs.
Ride quality is a mixed bag. Those tyres have a high sidewall but you’ll feel bumps like road and bridge joins, while speed bumps aren't so smooth, either. The ride is on the firmer side but it’s no dealbreaker.
It’s a little top-heavy when cornering, so there is lateral movement in the car. A good reminder this is a family SUV, not a hot hatch.
Steering is overly light and a bit too sharp for this sort of vehicle. There’s nothing wrong with dull or slower steering in a family car because it’s less responsive if you accidentally turn the wheel when distracted by shenanigans in the back seat.
The brakes are also quite sensitive. Just a tap of the foot and you’re coming to a full stop.
A bit of road and wind noise creeps into the cabin, so it’s not the most hushed interior, but it’s not too dramatic.
Other points include a decent turning circle, making it more nimble than you might think in tight parking spots, and poor-quality, low-definition lane watch camera display. Also the remote lock and unlock is temperamental. You need to double check it’s locked.
BYD didn’t have any examples of the Dynamic for us to drive, which makes sense given the significance of the changes to the Premium.
Previous experience with the front-wheel drive version of the Atto 3 didn’t leave much of an impression. It’s a perfectly acceptable mid-size SUV in terms of how it drives and rides, but it didn’t do anything special that made it stand out in a very competitive field.
This new Premium model, however, is a different story. The switch to the rear-wheel drive layout unsurprisingly has a dramatic impact on the way it drives.
Around town, at urban speed, it feels good but where it shines is on the open road. It’s not wildly fast when you put your foot down, like some other EVs, but it has excellent composure and feels responsive.
It’s not what you’d call a sporty or ‘hot SUV’ but it certainly leaves a good impression, one that will last longer than the front-wheel drive version.
Certainly the steering could be tuned better, it doesn’t offer much feeling, particularly just off-centre. And the ride can be noticeably firm at times, hitting bumps with a sharpness that you can feel in the cabin. It’s another example of where the Chinese brands could benefit from local suspension and chassis tuning to help it better suit Australia’s unique conditions.
The XUV700 is yet to be assessed by ANCAP so it currently doesn’t have a score.
The standard safety list is solid without being exceptional, and it includes seven airbags in this grade, with the curtain airbags stretching all the way back to the third seating row. However, it misses out on a front centre bag.
In terms of driver aids and advanced driver assistance (ADAS) tech, it also comes with adaptive cruise with stop & go, auto emergency braking, lane keep assist, lane departure warning, traffic sign recognition, tyre pressure monitoring, blind spot monitor and a pilot assist function. It lacks a rear cross-traffic alert.
The reversing camera lags when you put the car in reverse, taking a couple of beats to kick in. Not great when you’re trying to park on a busy street.
The adaptive cruise needs further calibration. When the system detects a car in front, it slows the Mahindra down a little too dramatically and takes too long to respond.
In addition to the other changes underneath, BYD has also taken this opportunity to include some additional safety. The Advanced Driver Assistance System (ADAS) gets a new Child Presence Detection function with an in‑cabin sensor that can alert you if someone is left in the vehicle after it is locked. There’s also a new Driver Monitoring System for both models.
The Atto 3 still has a maximum five-star ANCAP rating from a 2022 crash test.
Other standard safety equipment includes:
In addition the Premium adds:
Mahindra covers the XUV700 with a seven-year or 150,000km warranty which is generous but doesn’t match Kia’s seven-year, unlimited-kilometre term. It also includes seven years of free roadside assistance.
The servicing schedule has a few quirks. There’s a free service at 1500km or one month of ownership, then the next service is at 12 months or 10,000km, whichever occurs first. After that the term is every 12 months or 15,000km, so it’s a little confusing.
There’s four years of capped-price servicing that averages out to about $445 per service. That’s roughly $100 more on average per service than a petrol Mitsubishi Outlander.
One of my ‘dislikes’ when I drove the Atto 3 in 2024 was “long-term BYD prospects still unclear” - driven by the fact it was still a relatively small brand with a limited line-up (the Shark 6 wouldn’t launch until two months later). Well, as I write this in September of 2026 it’s safe to say BYD’s long-term prospects look as good as any brand.
It is sitting in second spot on the year-to-date sales charts, behind only Toyota but surpassing the likes of Kia, Ford and Mazda. There can be no question BYD has cemented its place in the Australian market.
It already has more than 100 dealer and service locations, with plans to grow that to 150 by the end of 2026.
As for the Atto 3’s specific ownership credentials, it’s covered by the brand’s standard six-year/150,000km warranty. The battery has a separate eight-year/160,000km warranty and the Drive Unit (the motor) is covered for eight years and 150,000km.
Service intervals are every 12 months or 20,000km, and with capped price servicing the Dynamic should cost you $1410 and the Premium $1670 for the first five years.