Mahindra XUV700 vs Polestar 2
What's the difference?

Mahindra XUV700

$39,990 - $42,990

2026 price

View pricing & specs

Polestar 2

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2026 price

View pricing & specs

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Summary

2026 Mahindra XUV700

2026 Polestar 2

By Tim Nicholson

By Jack Quick

Safety Rating

Engine Type

Turbo 4, 2.0L

Electric motor type

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Fuel Type

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Vehicle type

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Fuel Efficiency

8.3L/100km (combined)

Electric range

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Energy consumption

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Battery capacity

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Seating

Likes

Value for money
Punchy engine
Versatile, well-appointed interior

Fun and agile to drive
More efficient and quicker charging
Amazing (yet optional) Bowers & Wilkins sound system

Dislikes

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

Cabin space and storage still compromised
Options add up quick
No cover for panoramic glass roof

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 Polestar 2 Summary

The Polestar 2 was one of the first electric vehicles (EVs) in Australia to break through to the mainstream, however it has always been relegated to the Tesla Model 3’s shadow.

As a result Polestar is constantly playing catch up, releasing update after update for this premium-pushing electric liftback. The most notable was a major mid-life update in 2024.

Two years after this, Polestar has just rolled out the 2026 model year (MY26) update which introduces a range of subtle changes, largely under the surface.

It comes as Polestar is now introducing newer models, there’s mounting pressure from legacy carmakers who are only now catching up to EV tech, and Australians are moving away from buying passenger cars to SUVs.

Has this latest update improved the appeal? Read on to find out.

View full pricing & specs

Deep dive comparison

2026 Mahindra XUV700 2026 Polestar 2

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

This latest update for the Polestar 2 is lovely, but driving the original is a reminder of how solid this car has always been if you overlook the inherent impracticalities of being an EV on a combustion-engine platform.

The fact you still get steady flow of over-the-air software updates bringing new features, plus you can now upgrade to the new Qualcomm processor chip, saving some coin and getting a second-hand model that’s a couple of years old isn’t a bad option at all.

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

Mahindra XUV700 vs Polestar 2 What's the difference?

Summary

Deep dive comparison

Verdict

Verdict

Mahindra XUV700 vs Polestar 2
What's the difference?