Mahindra XUV700 vs Toyota RAV4

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 Toyota RAV4 Cruiser Hybrid 2WD builds on what made it so popular in the first place. It’s easy to drive, efficient and well equipped, with enough features to suit a wide range of buyers.

The updated technology is a clear step forward and lifts the overall experience, but there are still elements that feel out of step with the flagship positioning, particularly the use of hard plastics and some less refined finishes. Even so, it remains a practical and well-rounded option in the segment.

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 previous RAV4 had a distinct, unmistakable look, particularly from the rear but the new design feels a little more subdued by comparison.

It leans into a more conventional SUV shape, with a front grille that borrows heavily from the HiLux, including a strong use of body-coloured panelling. It still presents well at the kerb, but it doesn’t quite have the same standout presence as before.

Inside is where the biggest changes have happened. The dashboard sits lower, there are more storage cubbies and the new displays modernise the space nicely. There are fewer physical buttons than before, with some seat and climate controls now integrated into the touchscreen. It’s not my preference, but overall the layout remains intuitive and easy to navigate.

Looking around the cabin, it still feels very Toyota in its execution. There’s a noticeable use of plastics, even in this flagship grade, though there are enough soft-touch areas to keep things feeling solid and well put together.

One small drawback is the dual-opening, reversible centre console lid as it tends to squeak and doesn’t feel quite as robust as the rest of the interior.

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.

As far as mid-size SUVs go, the Toyota RAV4 still hits a solid beat when it comes to overall practicality. It doesn't get everything right but it does enough.

The space up front is generous and the seats are comfortable, especially with their added heat and ventilation functions. Access is decent enough with wide door apertures and an easy ground clearance and the only drawback is the high lip in the footwell, which can catch your foot slightly when getting out.

Storage is a highlight due the sheer number of options with a deep middle console, centre trays, sunglasses holder and dashboard shelving. Add in a couple of cupholders and drink bottle holders and it shouldn't be difficult to keep the cockpit tidy.

In the second row, there’s plenty of space for adults, with good leg- and headroom and a seat that’s supportive enough for longer trips. The leather trim feels nice, and practical touches like large map pockets and cupholders are appreciated.

However, for a flagship grade, it feels a little underdone on features. You get rear air vents and USB-C ports, but miss out on things like climate control, sunblinds and more thoughtful storage solutions. There are two ISOFIX points and three top-tether anchors, though realistically two child seats will fit best.

As mentioned, the technology upgrades are a big step forward. The new multimedia system is clean, responsive and easy to use, and while wireless Apple CarPlay can get confused if you have multiple device connections stored, it works seamlessly once pared back to one.

There’s built-in satellite navigation, a highly customisable digital instrument cluster that can display directions, and a solid mix of charging options including dual wireless pads, a 12-volt socket and four USB-C ports (two in each row).

Around the back, the boot is well-shaped and easy to load, with a claimed 705L of capacity when measured to the roofline. A powered tailgate, 12-volt socket and temporary spare tyre all add to its usability.

That said, the adjustable boot floor and cargo cover feel a bit flimsy and awkward in practice, which is slightly at odds with the otherwise practical and family-friendly focus.

There are six grades available in the new RAV4 line-up, split across a hybrid powertrain for now, with a plug-in hybrid set to join the range soon. We’re in the flagship Cruiser FWD hybrid for this family test, which is priced from $56,990, before on-road costs, and yes, that’s creeping close to $6.0K more than the outgoing model.

But here’s the twist, it’s still one of the more affordable options compared to its nearest rivals. The Hyundai Tucson Hybrid Premium starts at $58,350 MSRP, while the Kia Sportage GT-Line Hybrid FWD jumps significantly higher at $71,540 MSRP.

Even the Mazda CX-5 Akera, which sits in the same segment from $54,990, doesn’t offer a hybrid powertrain. So while the price hike stings a little, the value argument still stacks up.

Straight outta the gate, the biggest glow-up is the tech. The new 12.9-inch touchscreen runs Toyota’s 'Arene' operating system, bringing cleaner graphics, a more intuitive layout and over-the-air updates. It’s not as flashy as some rivals, but it’s a big step forward from the outgoing system and it’s easier to live with day-to-day.

There’s also a refreshed 12.3-inch digital instrument cluster, wireless Apple CarPlay and Android Auto, a colour head-up display and a digital rearview mirror.

Add in the nine-speaker JBL sound system, dual wireless charging pads, four USB-C ports and built-in satellite navigation and you have a nicely rounded tech package.

Being the flagship, the Cruiser leans into the premium feel with heated and ventilated electric front seats, leather upholstery, heated rear outboard seats and a panoramic moonroof. But interestingly, those last two are the only standout upgrades over lower grades.

Practical items include a powered tailgate, 12-volt socket and a temporary spare tyre but you miss out on some top-grade items in the second row that you might expect. Like climate control, device pockets and sunblinds. Omissions families will notice.

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.

Under the bonnet, the RAV4 pairs a 2.5-litre four-cylinder petrol engine with an electric motor as part of its updated hybrid system. Toyota doesn’t quote a combined torque figure, and total power has dropped slightly to 143kW, down 17kW from the previous front-wheel drive variant.

On paper, that reduction might raise a few eyebrows, but in practice it’s not something you notice often. What is more apparent is the improvement in refinement, with smoother transitions between electric and petrol power that make the overall driving experience feel more polished.

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.

Efficiency remains a strong point for the RAV4. Toyota claims a combined cycle (urban/extra-urban) fuel consumption figure of 4.5L/100km, and with a 55-litre fuel tank, that equates to a theoretical driving range of over 1000km.

In the real world, my average came in at 5.5L/100km across a mix of urban and open-road driving, which is an impressive result. The only caveat is Toyota’s recommendation for 95 RON premium fuel, which may add slightly to running costs over time.

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 RAV4 Hybrid 2WD performs confidently across most situations. It can sound a little strained when pushed hard, but there’s enough power on tap to keep up with traffic without issue.

The ride leans towards slightly firm, paired with responsive steering that gives it a more controlled feel through corners than you might expect. It remains stable at speed and around town feels punchy and easy to drive.

For those who prefer a stronger regenerative braking effect, switching to 'B' mode adds a noticeable increase, which works well in urban traffic. Refinement is another highlight. It’s impressively quiet on the move, even at highway speeds and feels well suited to longer trips.

One of the standout improvements is the 360-degree camera system. Where the previous version fell short, this one is clear and easy to use, making parking straightforward.

Due to myriad delays, Toyota wasn’t able to submit the new RAV4 for testing with ANCAP before the new and more stringent 2026 protocols kicked in, and thus it’s unrated for now, with a yet-to-be-detailed upgrade to come later to meet the stricter standard.

For now, it has a strong suite of safety equipment included, like eight-airbags, side exit assist, front and rear cross-traffic alert and emergency phone call capability. The adaptive cruise control is one of the better systems I’ve used in a long time and only the driver monitoring is annoyingly intrusive, otherwise the safety stuff seems well-calibrated for everyday use.

Other safety equipment includes lane departure warning, lane keeping aid, active steering assist, traffic sign recognition, and forward collision warning. There is also autonomous emergency braking (AEB), car, pedestrian and cyclist detection and junction turning assist.

For families there are two ISOFIX child seat mounts and three top-tether anchor points.

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 RAV4 is backed by Toyota’s five-year, unlimited-kilometre warranty, which now sits slightly behind some rivals offering longer coverage (upwards of seven-years on some).

Servicing is more competitive. A five-year capped price program comes in at $1625, averaging $325 per visit, with intervals set at 12 months or 15,000km. That’s well priced for the segment.

You also get complimentary roadside assistance, which is service-activated, along with a one-year subscription to the 'myToyota Connect' app. This allows remote access to functions like climate control and locking or unlocking the vehicle, adding a layer of convenience.