Mahindra XUV700 vs Cupra Formentor
What's the difference?

Mahindra XUV700

$39,990 - $42,990

2026 price

View pricing & specs

Cupra Formentor

$49,990 - $94,990

2026 price

View pricing & specs

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Summary

2026 Mahindra XUV700

2026 Cupra Formentor

By Tim Nicholson

By Jack Quick

Safety Rating

Engine Type

Turbo 4, 2.0L

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Fuel Type

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Premium Unleaded Petrol

Fuel Efficiency

8.3L/100km (combined)

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Seating

Likes

Value for money
Punchy engine
Versatile, well-appointed interior

Well-equipped
Massive range boost for PHEV
Fun and engaging to drive

Dislikes

Average fuel consumption
Ride and handling need work
Some cabin quality issues

Small boot in PHEV
Formentor S runs out of puff
Lots of tyre roar

2026 Mahindra XUV700 Summary

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.

View full pricing & specs

2026 Cupra Formentor Summary

We’ve waited more than two years and it’s finally here.

Cupra has introduced the updated version of its most popular car in Australia, the Formentor.

A spicy small SUV rival to the likes of the Mini Countryman, BMW X2 and Audi Q3, among others, this design-led small SUV is now offered in more flavours than ever before.

It’s our first time testing out this updated Formentor on local soil, so read on to see how it stacks up.

View full pricing & specs

Deep dive comparison

2026 Mahindra XUV700 2026 Cupra Formentor

Verdict

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.

Verdict

It’s clear that Cupra has listened to feedback as this updated Formentor addresses many key criticisms of the pre-update car. Overall it makes it easier to live with and to recommend than before.

Although the VZe's updated PHEV powertrain offers double the amount of electric range, the V forms as a sweet spot of the line-up as it offers all the power and equipment you'd ever need. It's hard to look past the top-spec VZx though as power is a drug.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

Mahindra XUV700 vs Cupra Formentor What's the difference?

Summary

Deep dive comparison

Verdict

Verdict

Mahindra XUV700 vs Cupra Formentor
What's the difference?