Mahindra XUV700 vs Subaru Outback

What's the difference?

We love a car which subverts expectations, and for the most part, the XUV700 has managed to. It feels like the brand has leapt over a few steps when it comes to design, quality, and particularly drivability, which bodes well when you combine it with a bargain price, a good equipment list and solid packaging.

The question is: Does the Australian market have room for yet another value player in a space already so well occupied by Chinese newcomers? Only time will tell.

The Subaru Outback AWD Sport XT has been a great car for my family this week. It was popular with everyone and for good reason. It has loads of space, it's easy to handle and now has the grunt under the bonnet to satisfy me as a driver. However, you are paying for that grunt with the thirsty engine and that could become tiresome with the rising costs of fuel. At this price point, I also didn't love the weird-feeling material on the seats but it still impressed with its practicality and the safety features.

My son enjoyed being in this and loved the green accents and cool 'army' green colour. It was also a great height for him to get in and out of unassisted.

The XUV700 is a clean-sheet design on an all-new platform and it shows. There are still echoes of the past in this SUVs bodywork, with the raised rear haunches and traditional Mahindra-shaped grille, but it feels like it’s taken a massive leap into the 21st century this time around.

It has a strong modern flavour and presence on the road, which doesn’t feel more than a generation behind like previous Mahindra offerings. Gone are the awkward curves and frumpy edges of its predecessors, and instead we’re welcomed by a more refined face, nipped and tucked rear with sporty touches, tough haunches and a contemporary overall look.

Inside the most dramatic upgrades have been deployed, including the impressive digital suite, seemingly decent software with a quick, responsive, and customisable instrument cluster, a new more attractive steering wheel, and a much smoother flow and coherency to design which we haven’t seen before from the Indian giant.

There are only a handful of areas, like the dorky elongated shifter, some hard plastics in the doors and atop the shapely dash, and the manual handbrake in the base car to remind you of its bargain price-point and origins.

It’s nice these attributes unite for an uncontroversial and modern overall feel, and quality is feeling on-par, but it’s also hardly original.

The headlights and steering wheel look like they could be worn by any Renault, the tail-lights look like they belong on a Nissan, and the dual-screen dash and door-mounted electric seat controls are clearly meant to emulate Mercedes.

Actually, one for the switchgear nerds, the function stalks are from the SsangYong parts bin, a holdover from when Mahindra owned the Korean automaker. Still, if you’re going to take inspiration, I can think of worse places to take it from, and it’s frankly remarkable all these pieces of inspiration fall together so well.

Subaru has been pushing for sharper robust shapes lately and this is no different. It's a large car being 4870mm long and 1875mm wide but it still feels like a station wagon with that 1670mm height!

Everything is proportional and well sculpted with a long nose being complemented by sharper accents, like the rear tail-lights that jut out.

There are some areas of interest, like the green accents on the roof rails and black plastic body moulding, that tie in nicely with the contrasting green stitching of the interior trim.

The interior is pleasing to look at with the two-tone synthetic leather trim throughout, tapered cutaways in the dash and doors, plus stacks of soft touchpoints.

The only thing I don't really like is the 'water-resistant' material in the middle of the seats. It feels very synthetic and I wonder how it will wear over time.

Overall, it's a very handsome car, inside and out.

Low-cost options in the mid-size SUV space usually get a bunch of basic stuff wrong. Laggy, ugly software, for example, is prevalent in the MG HS, while clumsy switchgear takes away from the Haval H6, and a particularly awkward driving position is notable in the LDV D90.

Mahindra’s XUV700 does not fall into these traps. The front seat feels spacious and airy, the seating position is high but not unsettling, and the thing which took me aback the most is the way everything works.

It’s a little annoying the base car gets no telescopic adjust and misses out on a second bottle holder because of the manual handbrake, but other than this, the ergonomics in the cabin are solid. A centre dial, for example, can be switched from navigation controls to function as a volume dial if desired, and there are plenty of shortcut buttons for the multimedia and the dual-zone climate making it a breeze to adjust things on the move.

For storage there is a large bottle holder and map pocket in each door, a large bottle holder (two in the case of the AX7L) in the centre, a bay under the climate unit good for phones and wallets (it is a wireless charging pad in the AX7L), and there’s a deep armrest console box between the front occupants.

The second row is also airy and spacious, with a nearly flat floor making even the centre position seemingly suitable for an adult. Behind my own seating position I had plenty of space at 182cm tall, and there are a set of adjustable air vents plus a slot for a phone, a USB-C charging outlet, and large bottle holders in the doors.

The third row? It’s not bad, but I’ve sat in better. The left-hand side second-row seat folds up and rolls forward, making access better than some of its rivals, but behind the second row my knees are hard up against the seat in front, and my head is touching the roof. There’s decent amenity; a bottle holder on each side and an adjustable air vent with a fan controller, but this is a space best left for kids.

Mahindra doesn’t have an official boot capacity number to give us yet, but predicts it will be over 700 litres given the dimensions. With the third-row folded it looks cavernous, but with it deployed you’ll be lucky to get a day bag in behind.

For those interested in towing, the XUV700 can tow a 1500kg braked trailer (750kg unbraked) and there’s halfway decent ground clearance, at 196mm.

I love how roomy the interior is. Taller occupants will be singing its praises (from both rows).

The 213mm ground clearance also makes this the perfect height to get in and out of, for my six-year old all the way to my 72-year old father. No grunts or complaints were heard this week!

Individual storage is great with a large glove box, middle console with a shallow shelf, two cupholders and drink bottle holders in the first and second rows plus double-sleeved map pockets in the second row.

Boot storage is good with 522L of capacity and a level load space – perfect for sliding in a pram or luggage.

There's no underfloor storage because of the full-size spare tyre but there are little pockets on the side of the wheel arches for smaller items. You can bump up the storage to 1783L when the back row is folded flat.

Considering Subaru's sponsorship of the ski fields, I was surprised that the back row only has a 60/40 split fold configuration and not a 40/20/40, which would allow for internal stowage of longer gear… like skis. However, you do get strengthened roof racks with anchor points for bigger gear.

The amenities in each row are pretty good, too. The rear seats enjoy directional air vents, USB ports, reading lights and heated outboard seats.

I enjoyed using the tech this week, it's easy to use and looks good. My favourite combo.

The 11.6-inch touchscreen multimedia system has built-in satellite navigation and wireless Apple CarPlay and Android Auto. It was ridiculously easy to connect my iPhone and I like the Bluetooth connectivity, too.

There is a USB-A and USB-C port and (unusually) an 'aux' port in the front row, but backseat passengers can also stay charged up with two USB-A ports. There are two 12-volt sockets for other charging options but basically, you're sorted with outlets.

The Sport XT will cost you $52,190, before on road costs, but you get a lot of features fitted as standard, which makes it feel like you're getting your money's worth.

Some of those features include, electric heated front seats, heated rear outboard seats, powered tailgate, dual-zone climate control, wireless Apple CarPlay and Android Auto, satellite navigation, Bluetooth connectivity, 18-inch alloy wheels, a full-size spare tyre and a large 11.6-inch touchscreen multimedia system.

And that's just a 'few' of the features! Even the entry-grade has great specs, if you didn't want the extra power from the turbo-engine.

There’s just one engine for the XUV700 for now, a 2.0-litre turbocharged four-cylinder designed in-house at Mahindra.

Power outputs are comparatively impressive at 147kW/380Nm, especially when lined up against the old 2.5-litre non-turbo units powering some rivals.

The power is channelled to the front wheels via a six-speed Aisin-sourced traditional torque converter automatic. For a keen driver this is preferable to a CVT or a dual-clutch, so this sits well with us.

Overseas there is also the option of a 2.2-litre turbo-diesel (136kW/450Nm) with all-wheel drive, but this is yet to materialise for the Australian market.

Our model has the new 2.4-litre, four-cylinder, turbo-petrol 'boxer' engine with a maximum output of 183 kilowatts and 350 Newton metres of torque. That's a big step up in power from the previous non-turbo engine.

The continuously variable auto transmission is relatively smooth and the combo means this handles open-road and urban conditions well.

Efficiency is officially rated at 8.3L/100km for both XUV700 grades, which is not bad but not great. Understandable for an SUV which weighs in excess of 1800kg powered by a 2.0-litre turbocharged engine.

We didn’t pull an as-tested fuel number this time around as we were hopping in and out of different vehicles, so standby for a more detailed analysis when we have one for a week-long follow-up test.

The fuel tank comes in at 60 litres, for a theoretical range of roughly 723km.

Hoping to hold out for a hybrid? Don’t. Mahindra isn’t working on one. Look to its incoming fully-electric BE sub-brand instead.

The official combined fuel cycle figure is 9.0L/100km. Real world testing saw my figure at 9.6L/100km but that was after heavy open-road driving this week.

Unfortunately, it's thirsty and urban-dwellers will feel that the most at the bowser, but the upside is getting the extra grunt from the turbo.

The Outback has a relatively small 63L fuel tank for its size and only takes premium fuel (95 or higher).

It’s good. Surprised? Me too.

The XUV700 is good to drive in a fundamental way which is not the case for its Chinese rivals. There’s no impending feel of understeer or clumsy dynamics on show. The XUV700 is controlled and solid on the road, with a surprising level of refinement in the cabin.

Visibility is plentiful, and while power from the turbo engine isn’t quite as urgent as the figures initially suggest, it’s more than enough for a family commuter. Even the six-speed transmission is smooth and unobtrusive, unlike many dual-clutch or CVT options in this space. There isn’t even any noisy engine surging, with the unit here feeling refined and distant.

It’s almost ready to duke it out with more established rivals, but there are still flaws. The steering, for example, is very light. This will make it easy to control in low-speed parking situations, but it lacks any kind of feel or feedback at speed.

The ride is comfortable, perfect for its family intentions. Mahindra utilises a multi-chamber system here to achieve unusually competent response over a host of different surfaces, especially rare for a vehicle at this price or in this category. Everything comes at a cost, though, and the cost of this system is a fair bit of body roll in the corners, and a bouncy nature over undulations. 

Fundamentally, though, this car is solid. Nothing proved this more than the brand letting us drive its family SUV on a track at speed. What seems like a silly stunt is an important vote of confidence in the way this car handles, because it’s at track speeds and conditions where all the ugly characteristics will come to the fore.

While it’s certainly no track hero, what was most impressive is despite its rolly suspension and ultra-light steering, there were no major red flags about this car which stood out. It’s solid, and Mahindra knows it. I’d dare MG or GWM to do the same with the HS or H6.

What does all this mean for you? The car has safe road holding and confident dynamics, as well as the comfort for your family. It’s not as razor-sharp as the Japanese or Korean competition, but it’s better than all of its low-cost rivals.

I thoroughly enjoyed driving this. The engine is powerful enough to easily handle winding mountain roads, always a plus in a big family car, but the pick up is also good and you can zip across traffic or overtake when needed.

The cabin is delightfully quiet and the suspension creates a smooth ride without being floaty.

The tight 11m turning circle and accurate steering means cornering feels concise and controlled.

It's pretty easy to manoeuvre this around but you'll miss having front parking sensors in a tight car park because the nose is deceptively long.

I like how crisp the image is from the reversing camera but it's disappointing that it doesn't have a 360-degree view camera for where this Sport XT sits in the model range.

The safety features are well-stocked in this and it has items I always like to see on a family car, like LED daytime running lights, automatic emergency braking, rear emergency braking, lane departure alert, lane keeping aid, blind-spot monitoring, rear cross-traffic alert, a reversing camera and rear parking sensors, but not front parking sensors, which you'll miss.

A highlight is the 'Driver Monitoring System' which is a fantastic feature.

The system literally watches you and scans your face for signs of drowsiness and distraction. If it detects them, it will sound an alert and a pop up comes on in the instrument panel.

I tested the sensitivity a lot this week and couldn't stump it. Thumbs up.

The Outback has seven airbags, but it is missing the newer front centre airbag, which is a shame.

It's been awarded a maximum five-star ANCAP safety rating from testing done recently in 2021.

There are ISOFIX child seat mounts on the outboard rear seats and three top tether child seat anchors.

The back seat is wide enough that, with the right seats, you should be able to fit three side-by-side.

There is enough room for front occupants when a 0-4 rearward facing child seat is installed.

Seven years of warranty is a good start, and has Mahindra joining an increasingly large club of challenger brands which are following in the footsteps of Kia by offering above-average coverage in this department. Mahindra’s version only covers the first 150,000km of distance, but there’s seven-years of roadside assist, too.

At the time of writing, Mahindra was yet to land on service pricing. This could be the last piece of the puzzle for some buyers. The XUV700 needs to be serviced once every 12 months or 10,000km.

On-going costs are always something to consider and the Outback comes with a five-year/unlimited km warranty, which is standard for the market.

You can choose either a three- or five-year capped-priced servicing plan, the services average on the more expensive side at $515 annually on the five-year plan.

Servicing intervals are pretty good at every 12 months or 15,000km, whichever comes first.