Mahindra XUV700 vs Peugeot 2008

What's the difference?

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.

The Peugeot 2008 is a handsome and accomplished little SUV that’s fun to drive and has a cabin that feels a little bit special.

In reality the 2008 is too expensive and isn’t as practical as most of the mainstream compact SUVs.

This is the car you buy with your heart, not with your head.

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. 

The Peugeot 2008 is a smooth operator with head-turning French flair, but the devil is in the detail.

It’s not just the 2008’s well proportioned dimensions or the healthy dollop of exterior black highlights that catch your eye, but Peugeot has added a range of design cues to symbolise the Lion on its badge.

The tail-lights have a 3D effect that make them look like cat’s claws and the daytime running lights on the front resemble a scratch mark. These pair perfectly with the lion head crest on the grille.

Look deeper and you notice the attention to detail.

The 2008's redesigned front grille's slates are colour matched to the car's body colour.

Dual exhaust pipes are finished in chrome, giving the impression of performance even if the car doesn’t deliver on it.

The GT variant gets a two-tone paint job with a black roof contrasting with the body's colour.

Inside there are plenty of high quality finishes. The centre console is festooned in gloss black and there is a lovely carbon-effect textured insert on the dash and doors. 

Some hard plastics below eye-level and on touch points such as where your knee might rub are less impressive. The rear seat loses some of the lustre of the front pew with tough plastics covering the back of the front seats and most of the doors.

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.

Step inside and there is no hiding the 2008’s diminutive proportions.

It’s 4300mm long, 1815mm wide and 1550mm high, which puts it closer in size to the mini Mazda CX-3 than the larger CX-30 it is more aligned with price-wise.

This all adds up to a snug fit in whichever row you sit.

There are a couple of cupholders in the centre console - a smaller one for a standard takeaway coffee and a larger one for drink bottles.

Slight storage bins in the door can hold a regular drink bottle but there isn’t much room for much else.

The wireless device charger is hidden away behind a compartment below the central screen that opens with a push and there are two USB-C ports up front and the rear seats score a USB-C and A connection.

Rear seat passengers do without a dedicated aircon vent, unfortunately.

There is an issue with Peugeot’s i-Cockpit steering wheel and digital driver display, too.

If you like to sit low the chances are the steering wheel will cut off your view of the bottom part of the display. If you prefer to have the seat jacked up, you’ll have better vision of the readouts.

There are piano key-like physical controls for simple climate functions such as the de-mister and auto climate settings. More complex functions are done via the 10-inch central multimedia screen.

The boot is a decent size at 434L and can easily handle a weekly grocery shop or a few overnight bags.

There is only a space saver spare wheel, but this car is aimed at city driving where it is easier to source a replacement tyre.

The 2008 range kicks off at $39,990, before on-road costs, for the base Allure grade and rises to $44,490 for the fully loaded GT variant.

That’s a lot of money for a small SUV, especially considering the Skoda Kamiq range starts at $32,990, you can get Nissan’s Qashqai from $33,890 and a Mazda CX-30 for $33,140.

There is a lot to like about the 2008’s standard equipment list, though.

Flash looking 17-inch alloy wheels are complemented by adaptive LED headlights that control individual LEDs to brighten the road without dazzling oncoming vehicles. The headlights will automatically switch on in low light situations and stay on for a short period of time after you exit the vehicle to make it easier to find your way to the door at night.

A 10-inch multimedia screen is compatible with wireless Apple CarPlay and Android Auto, and a wireless device charger completes the cord-free ecosystem.

Peugeot’s 'i-Cockpit' brings a 10-inch driver display with 3D readouts paired with a small steering wheel.

GT buyers can expect eight colour ambient lighting, a six-speaker stereo, four USB charging ports, in-built sat nav and brushed aluminium foot pedals.

Well bolstered seats are heated up front and wrapped in synthetic suede and leather upholstery with contrast green stitching. The driver’s seat is power adjustable and has a massage function but the front seat passenger will need to move the seat themselves.

There are rain-sensing wipers, roof rails, power folding and heated side mirrors and a space saver spare wheel.

It’s a solid list of equipment but is missing some features you’ll find on similarly priced rivals such as a head-up display.

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.

Lurking beneath the bonnet is a little three-cylinder 1.2-litre turbo-petrol engine that makes 96kW and 230Nm. That’s a decent amount of grunt from the little unit, but again you can get more oomph for less from mainstream rivals.

It is paired to an eight-speed automatic transmission that drives the front wheels.

There is no hybrid help, either.

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.

Stiff emissions regulations in Europe mean these little turbocharged petrol engines have a fair bit of self control on the drink.

Peugeot claims the 2008 uses 5.4L/100km on the combined cycle. We used slightly more than this but spent most of the time in the cut and thrust of city traffic where cars use more fuel.

You’ll need to budget for pricier premium unleaded petrol, too.

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.

On the road the 2008 is a bit temperamental.

Most European cars are fitted with stiffer suspension than the cosseting springs found in Japanese machines.

This means you’ll feel bumps and road imperfections through your seat more than other SUVs. It has particular problems ironing out consistent smaller bumps, which can unsettle it and lead the 2008 to skip across them.

The counterbalance to that is a more dynamic drive experience, with the 2008 exerting excellent body control through the bends as it is held in line by the stiffer set-up.

Pair this with sharp, direct and well-weighted steering and it's a fun little SUV to take on a twisting country back road.

Three cylinders might not sound like a lot, but in the real world this is all the 2008 needs.

Its 96kW and 230Nm won’t set the world on fire but the torque is accessed from just 1750rpm, which endows the 2008 with some punch off the mark and it feels zippy when navigating the daily commute.

Don’t confuse that for outright speed, though, the 2008 completes the benchmark 0-100km/h dash in 9.3 seconds.

The transmission is fine when you are accelerating or cruising at motorway speeds, where it uses its many ratios to keep the engine humming along in its sweet spot. There are paddle shifters if you want more control.

In stop-start traffic it isn’t as an accomplished performer. It can struggle to find the right ratio and this leads to a jerky movement reminiscent of dual-clutch autos.

The cabin is well insulated with the outside world kept mostly at bay, but you’ll hear the three cylinder’s charming little rumble when you put your foot down.

Parking is a cinch thanks to its petite proportions and the 2008 has no issues navigating tight city streets or underground car parks.

The 2008 has a maximum five-star ANCAP safety rating, but that mark was given in 2020 and it might not get the same score if it was retested today.

It has six airbags, but misses out on a centre airbag that protects against head clashes in a side on collision.

It has a decent amount of safety equipment with auto emergency braking, lane keep assist, blind spot monitoring and adaptive cruise control.

Rear cross-traffic alert, which sounds an alarm if a car is approaching from the side as you reverse, is a notable absence.

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.

Peugeot covers the 2008 with a five year/unlimited km warranty, which is the standard coverage today.

The French brand offers a range of prepaid servicing packs that’ll save you a handy amount compared to pay-as-you-go maintenance.

A five-year plan is the best value, costing $1700 for five scheduled visits every 12 months or 15,000km. That’s $638 cheaper than the pay-as-you-go servicing.