Mahindra XUV700 vs Peugeot 3008

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 new Peugeot 3008 GT Premium Hybrid might not be the most spacious SUV for passengers, but it makes up for it with ample boot space and a standout design. It’s fresh-faced, interesting and packed with comfort features that elevate the everyday driving experience.

Is it expensive? Absolutely. But it also delivers a genuinely premium cabin that many rivals can’t match, along with refined on-road manners and efficiency that make it a pleasure to drive.

It doesn’t hit every note perfectly but there’s definitely a melody here worth listening to.

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 third-generation Peugeot 3008 boasts a striking silhouette, with coupe-like lines at the rear and well-proportioned overall dimensions that give it a confident, refined stance.

Signature Peugeot elements like the claw-inspired LED headlights and tail-lights lend it a distinctive, modern edge, which elevates its presence in a crowded SUV segment.

That said, the extensive use of black plastic cladding around the lower body detracts from the otherwise premium exterior and feels out of place.

Step inside and the cabin is easily one of the most captivating interiors I've been in recently. There's real design flair here: a multi-level centre console, sculpted ambient lighting panels that highlight the angular dashboard, and a rich, eclectic mix of materials. From quilted Nappa leather seats to textured grey knit fabric and brushed aluminium accents, it’s a refreshingly bold and beautifully executed space.

Add the panoramic sunroof and long equipment list, it's a cabin that you'll like to spend a lot of time in.

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 best part of the cabin is easily up front. There's generous space, and the seats are comfortable, even before you engage any of their functions. Longer trips have been a dream. I particularly enjoyed the massage settings, though the session durations felt a bit inconsistent.

Storage in the front is cleverly designed, with plenty of options: a sunglasses holder, a large glovebox, a phone shelf, a deep centre console and ample drink holders. It’s easy to keep the space tidy and organised.

Charging options are solid, with two USB-C ports, a 12-volt socket and a wireless charging pad.

The updated multimedia system has a screen that is wider than it's tall, making the icons small and easy to miss while on the go. I did tap the wrong one a few times!

That said, I appreciated the customisable quick-access and instrument panels, and connecting to the wireless Apple CarPlay was seamless. The touchscreen can be a little laggy, but overall the system is functional and intuitive once you're used to it.

Owing to its relatively short 4542mm length, rear legroom is tight, and the bench isn’t wide enough to comfortably seat three adults over long distances. This just makes it feel cramped for a mid-size SUV and it's something my eight-year old noticed straight away.

The seats are well-padded, though, and rear amenities are strong with directional air vents, heated outboard seats, two USB-C ports, a 12-volt socket and the usual cupholders and map pockets.

Boot space is generous at 520L with a flat load floor. The 48-volt battery means there's no spare tyre, but the powered tailgate with kick-function was a lifesaver during errand runs this week. For more flexibility, the rear row folds in a 40/20/40 split.

The new 3008 has a streamlined line-up of only two grades, at least for now, and we’re in the flagship GT Premium Hybrid for this review.

The third-generation 3008 has a new mild-hybrid powertrain, which pairs a turbocharged petrol three-cylinder engine with a small electric motor and a 48-volt battery. A fully electric version exists overseas but is yet to be confirmed for Australia.

Our test model competes with popular mid-size SUV rivals like the Mazda CX-5 Akera, which starts at $55,150 before on-road costs, and the Toyota RAV4 Cruiser 2WD, which sits at $51,410.

With its $64,990 price tag, the new 3008 GT Premium Hybrid is the most expensive option, which might only appeal to fans of the brand.

However, the GT Premium is very well-specified with massaging and heating functions for the electric front seats, a panoramic sunroof, a 10-speaker Focal sound system and a 3D sat nav with connected services, where you can get information like local car park pricing, as well as over-the-air updates.

Other premium features include ventilated front seats and heated rear outboard seats, which are new for this model.

But the biggest change inside is the new 21-inch display, which houses the updated multimedia system and digital instrument cluster.

There are other new features like wireless Apple CarPlay and Android Auto, and an upgraded panel for your quick access menu widgets (up to 10 widgets can be customised).

Other features include a handsfree powered tailgate with kick functionality, keyless entry and start, four USB-C ports, a wireless charging pad, a tyre repair kit, a panoramic sunroof and surrounding ambient lighting.

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.

All grades of the 3008 are powered by the same mild-hybrid setup, featuring a 1.2-litre three-cylinder turbo-petrol engine that's paired with a small electric motor and a 48-volt battery. Power is sent through a six-speed dual-clutch transmission, with the system delivering combined outputs of 100kW of power and 230Nm of torque.

Performance is modest, with a 0-100km/h sprint time taking 10.2 seconds. It’s perfectly adequate for everyday driving around town and in traffic, but the lack of urgency becomes more noticeable when overtaking at highway speeds. Still, the hybrid system offers smoother low-speed acceleration and improved efficiency over the outgoing petrol-only model.

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.

The new mild-hybrid powertrain brings a solid improvement to efficiency, with an official combined fuel consumption of 4.9L/100km. Paired with a 55-litre fuel tank, that delivers a theoretical driving range of up to 1122km, which is an impressive figure for a mid-size SUV.

Over the past week, I’ve done a mix of longer highway drives, urban errands and the usual big grocery hauls. My real-world average came in at 6.1L/100km, which is still a strong result for this segment.

The system also features regenerative braking, which while not customisable, is noticeable in everyday driving. It kicks in strongly enough to give the sensation of heavy braking at times, particularly in city traffic and it reminds you that it's working behind the scenes to recover energy.

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.

The 3008 has been genuinely enjoyable to drive. It’s easy to handle, with responsive steering and a stable, confident feel at higher speeds. The transmission generally keeps the powertrain in the right gear, only occasionally over-revving during open-road driving.

Power delivery is prompt enough for stop-start traffic and quick city lane changes. That said, there's a noticeable dip in performance when overtaking on the highway and it’s a clear reminder that this isn’t a high-output powertrain.

Visibility is generally good, though the narrow rear window can limit your view, especially when passengers or a child seat are in the back. Still, the pillars didn’t obstruct my view from the driver’s seat.

The suspension is on the firmer side, so you will feel the larger bumps, but it strikes a decent balance for everyday driving.

There’s a bit of body roll when cornering, which prevents it from feeling as sporty as its coupe-inspired design might suggest.

Parking is a breeze thanks to the clear 360-degree camera system, ample sensors and a tight 10.64m turning circle. My only gripe is that the rear camera points slightly downward, which can make the view feel narrower than expected.

At the time of writing, the 3008 is untested and unrated by ANCAP, which may be a consideration for some buyers. It also features just six airbags, missing a front centre airbag — a growing standard in many newer rivals.

On the plus side, Peugeot has added several useful driver assistance features, including forward collision warning, long-range blind-spot monitoring and lane departure warning. 

Other standard features include autonomous emergency braking, lane-keeping aid, lane-following assist, driver attention alert and monitoring, traffic sign recognition, rear cross-traffic alert and adaptive cruise control with stop and go functionality.

There are also child locks on the rear doors, an intelligent seatbelt reminder, front passenger detection and tyre pressure monitoring. Most of these systems operate quietly in the background and don’t feel overly intrusive, which I always appreciate.

However, I did encounter a concern with the autonomous emergency braking system. During a close call when another driver blew through a roundabout in front of me, the system didn’t alert or react — no sounds, no warnings. It was a surprising omission, especially in a moment where you’d expect the tech to step in.

The rear row has ISOFIX child seat mounts and three top-tether anchor points but two seats will fit best.

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.

The 3008 comes with a five-year/unlimited-kilometre warranty, which is okay but now feels a bit basic, especially when rivals like Nissan offer up to 10 years of coverage (under specific servicing conditions).

Peugeot also provides a five-year capped-price servicing plan, or you can opt to pre-purchase servicing for three, four or five years. The five-year pre-paid plan comes in at $1890, which works out to be more affordable than sticking with the capped-price option.

Servicing intervals are every 12 months or 25,000km, whichever comes first. That’s quite generous, particularly if you rack up a lot of kilometres annually.