Mahindra XUV700 vs Skoda Octavia

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 Skoda Octavia has always been impressive in wagon guise and this mHEV variant is no different. While the mild-hybrid set-up adds little to the Octavia package there’s still plenty to like about this wagon. It’s smooth and refined to drive, packed with features and has ample appeal as a value-for-money buy.

It’s no surprise if this wagon is at or near the top of your vehicle shopping list.

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. 

A wagon, by its very nature, is a vehicle with a low and long body style. And the Skoda Octavia Select mHEV wagon adheres to that design expectation.

At 4698mm long, 1829mm wide and 1468mm high, it’s low and sleek, especially compared to the taller and bulkier SUVs and utes I usually test, and this wagon’s lower entry/exit height takes a bit of getting used to. It feels like I have to do a contorted yoga pose every time I get in and out of this wagon.

The interior has a premium feel about it, despite bearing fabric seats, expansive use of durable plastic and the like, and it does feel squeezier inside than expected.

In design terms, this Octavia holds its own against mid-sized wagon rivals and even mid-size SUV competitors.

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.

This Octavia has a neat and functional interior with a low-key premium feel about it, even though it’s a lower-spec variant in the line-up.

The front seats are manually adjustable and offer a reasonable degree of comfort and support, and there are enough hard-wearing plastic surfaces and handy storage spaces throughout the cabin to please the fussiest of drivers and passengers.

There are two USB-C outlets and 45W charging upfront and in the rear seat.

Bonus: the multimedia system is easy to pair with your phone and to use in general driving.

Second-row passengers are well catered for with charge points, storage spots and even a small portable bin in the passenger door pocket. That, and the umbrella in the driver-side door, are among the many nice, welcome touches Skoda does so well.

The second-row seats – in a 60/40 split configuration – are comfortable with adequate room for everyone. The fold-down centre armrest has cupholders.

For child seats, it has two ISOFIX points on the outboard seats in the second row and three top-tether anchor points.

At the back, there is a 640-litre boot (when all seats are up and in use) and luggage capacity expands to 1700 litres when the second row is stowed away.

The rear cargo area has a luggage compartment cover, a 12V outlet, net pockets and four tie-down points.

This Skoda has a listed unladen mass of 1388kg and a gross vehicle mass of 1910kg, so payload is approximately 522kg, which is reasonable but not overly generous.

It’s rated to tow 700kg (unbraked) and 1500kg (braked).

As a practical vehicle, this Octavia holds its own against mid-sized wagon rivals and even some mid-size SUVs.

The Skoda Octavia Select mHEV in wagon form has a manufacturer suggested retail price of $43,490, excluding on-road costs. Our test vehicle has optional paint (Graphite Grey Metallic) so it has an RRP of $43,790.

Standard features onboard include a 13-inch multimedia touchscreen system, a 10-inch digital driver instrument cluster, heated front seats, hands-free electric tailgate, keyless entry and driver-assist tech includes adaptive cruise control, lane-keep assist and front and rear cross-traffic alert. 

Exterior paint choices on this variant include Moon White (no extra cost), or choose from Black Magic, Race Blue, Smoky Silver or Graphite Grey Metallic (on our test vehicle), any of which will set you back $300.

Other optional extras include a Signature Pack (which costs approximately $6500) that adds a head-up display, leather interior trim, ventilated/massage front seats and matrix LED headlights to the package.

This wagon offers impressive value-for-money against its rivals, such as the Mazda 6 or Subaru Outback, or even against mid-size sedans like the Hyundai Sonata or Toyota Camry.

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 Skoda Octavia Select mHEV has a 1.5-litre, four-cylinder, turbo-petrol mild-hybrid set-up, with the engine producing 110kW at 5000-6000rpm and 250Nm at 1500-3500rpm. It’s paired to a seven-speed dual-clutch automatic transmission.

This combo generally offers smooth acceleration once you’re underway, but the Octavia wagon takes some urging from initial foot down to fuller vehicular movement and the dual-clutch should cop most of the blame for that.

This wagon’s mild-hybrid set-up includes a 48-volt electric motor and a lithium-ion battery, and this system is designed to assist the engine during acceleration, but this vehicle can’t drive on electric power alone.

It has regenerative braking and allows engine-off coasting, which aims to reduce fuel usage.

While the mild-hybrid set-up adds little to the Octavia package, this powertrain delivers enough in terms of drivability to keep it on level terms with its rivals.

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.

Official fuel consumption figure on the combined (urban/extra-urban) cycle as 5.2L/100km and on this test I recorded 6.5L/100km.

This Skoda has a 45-litre fuel tank so you could reasonably expect a driving range of about 690km from a full tank.

Worth noting it takes premium unleaded petrol (95 RON minimum).

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.

At 4698mm long, with wheel tracks of 1543mm front and 1535mm rear and 142mm ground clearance, this wagon has a low, squat stance at rest and yields controlled ride and handling on the move.

The driver’s seat is manually adjustable, so you can approximate your preferred position, but because this is a long and low wagon, visibility for the driver is a bit pinched along the sides and at the rear, compared to the view you're typically afforded in a slab-sided SUV.

The Euro-oriented steering wheel controls (indicator stalk on left, windscreen wipers on right) take some getting used to if you’re not already familiar with that arrangement and the cruise control stalk is in an awkward position at the bottom left of the steering wheel column. Annoying.

Otherwise, the Octavia offers a pleasant overall driving experience – smooth, comfortable and refined – except for that aforementioned initial lag from a standing start.

The four-cylinder turbo-petrol engine and mild-hybrid set-up yields enough all-round pep without being too lively and there’s no drastic change in performance when the 48V motor cuts out after assisting acceleration.

Steering is well-weighted and precise at all speeds and with a 10.4m turning circle this Skoda feels highly manoeuvrable around the suburbs and in the city.

The suspension (MacPherson strut with lower triangular links and torsion stabiliser at the front and semi-independent compound link crank-axle at the rear) is firm.

The Skoda’s Laufenn S Fit 2 (205/55x17) all-season tyres are reasonable for urban roads and rough back-country roads. This wagon has a space-saver spare, not ideal but not unusual, either.

The Octavia mHEV is a smooth cruiser and more than holds its own against its rivals.

The Skoda Octavia Select mHEV wagon has the maximum five-star ANCAP safety rating from testing in March 2026.

Standard safety features include eight airbags, Autonomous Emergency Braking (AEB), adaptive cruise control, front cross-traffic assist, front and rear parking sensors, lane keep assist, traffic sign recognition and rear cross-traffic alert.

It has two ISOFIX points on the outboard seats in the second row and three top-tether anchor points.

The level of safety gear onboard here keeps the Octavia easily competitive against its rivals.

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.

Skoda’s seven-year/unlimited kilometre warranty applies to this wagon and it’s pretty impressive.

Roadside assistance is offered and extended for up to 12 months following each completed scheduled service at an authorised dealer.

Servicing is scheduled for every 12 months or 15,000km whichever occurs soonest and the cost per service was, at time of writing, $413 (12 months/15,000km), $707 (24 months/30,000km), $396 (36 months/45,000km), $1090 (48 months/60,000km), $396 (60 months/75,000km), $801 (72 months/90,000km), and $396 (84 months/105,000km).

Service packs (which include the roadside assistance provision) are available and cost $2590 (five years) or $3490 (seven years).

There are 39 Skoda sales and serviced dealers across the country with eight service-only sites in key rural and regional areas.