Mahindra XUV700 vs Volkswagen Golf

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.

Like the generations that preceded it, the current VW Golf 8.5 is a high-quality, comfortable and efficient small car. Add in good looks, space-efficiency, thoughtful practicality as well as class-competitive safety and you have the makings of a compelling package. The potential sticking point is this entry-level 110TSI Life’s value proposition in terms of included features relative to its purchase price and ongoing cost of ownership.  

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 team at VW’s Design Centre in Wolfsburg grapples with the same challenge when it comes to evolving the Golf as their contemporaries down the autobahn at Porsche face with the 911.

Over successive generations it must remain instantly recognisable as a Golf but move on to a more contemporary look and feel.

And although it’s always a subjective call I’d argue the current ‘8.5’ generation Golf answers the brief nicely.

Its neat, tightly wrapped exterior aligns with the classic Golf profile while including enough detail elements like the angular tail-lights and broad C-pillar to pass the badge removal test. Take away the VW roundels and this car is still clearly a Golf.

Neat touches include illuminated door handle recesses and broad-spoke alloy wheels that lift the visual tone.

Inside, the same juggling act stands up with sizeable screens for instruments and media balanced by a typically teutonic dash, door and console layout (with soft-touch surfaces at key points). Conservative but ultra-functional and easy to live with.

One niggle is haptic slider controls for audio volume and ventilation adjustment below the media screen rather than physical dials (although a steering wheel volume rocker switch helps). 

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.

At close to 4.3 metres long, less than 1.8m wide and under 1.5m tall with a 2631mm wheelbase the Golf sits at the more compact end of the small-car spectrum.

But there’s plenty of head and shoulder room up front with relatively large doors making entry and egress easy.

Storage is plentiful with bins in the doors large enough to swallow large bottles, a decent glove box, an open tray in the dash for the front passenger and twin cupholders in the centre console (one able to hide away for extra general storage), a wireless device charging bay and a coin or pen slot next to the gear selector. 

Special mention goes to the padded lid on the storage box between the front seats, which in modern VW style, can ratchet up through three positions and extend out to make its side hustle as an armrest even more valuable.

Move to the back and, understandably, there’s adequate rather than copious amounts of space, roughly on a par with others in the class.

Sitting behind the driver’s seat set for my 183cm position I have decent leg and headroom and there’s enough width for three (friendly) full-size adults on a short journey but it’s best for two.

There are generous door bins, again with room for large bottles, map pockets on the front seatbacks, two (and a half) cupholders in the fold-down centre armrest and an oddments slot under twin adjustable vents at the rear of the front centre console.

Power and connectivity runs to dual USB-C jacks and a 12-volt socket up front, with another two USB-Cs in the back and a 12V in the boot.

Speaking of which, the boot measures 374 litres (VDA) with the 60/40 split-folding rear seat upright expanding to 1230L with it folded.   

Interestingly, the Golf’s Corolla nemesis offers only 217 litres of boot space with all seats up. But the flagship ZR grows to 333L because it ditches a physical spare tyre for a repair/inflator kit.

Something the Golf, to VW’s credit, doesn’t do, with a space-saver spare under the boot floor. Numerous load anchors and bag hooks in there are a big plus.

The fact you’re able to tow a 1.5-tonne braked trailer (690kg unbraked) rounds out a solid practicality package. 

We may have been swamped by the SUV wave over the past couple of decades but the small hatch hasn’t disappeared and at $39,290, before on-road costs, the Golf 110TSI Life lines up against a main quintet of quality internal-combustion alternatives.

Sitting at around the same money (all prices before on-road costs) are the Hyundai i30 Premium 2.0P ($39,500), Kia K4 Sport+ Hatch ($39,090), Mazda3 G25 GT Vision ($40,410), Subaru Impreza 2.0S ($40,990) and Toyota Corolla ZR Hybrid ($39,100).

It’s the Corolla that dominates the category overall, currently outselling the Golf by a ratio of 6.5 to one (5208 vs 799 units - YTD 2026).

And in this instance, the entry-level Golf aligns with the top-spec (non-GR) Corolla ZR which would appear to place it firmly behind the eight ball in terms of value. But does it?

Aside from the performance and safety tech we’ll get to shortly the Golf 110TSI Life’s standard specification includes auto LED headlights, rear fog lights, surround lighting (projected from the door mirrors), 17-inch alloy rims, single-zone climate control, a 10.2-inch instrument display, a 10.3-inch central multimedia screen, six-speaker audio (with digital radio), Android Auto and Apple CarPlay connectivity, ‘GoConnect’ connected services, LED ambient lighting, heated and power-folding exterior mirrors, a leather-trimmed steering wheel and rain-sensing wipers.

Not exactly poverty spec, but for context the Corolla ZR matches all that and picks up 18-inch alloys, high grade LED headlights, front fog lamps, an eight-way power-adjustable driver’s seat, heated front seats, dual-zone climate, leather and synthetic suede seat trim (compared to the Golf’s cloth), a 12.3-inch instrument display, eight-speaker JBL audio and more.

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.

As its name implies the Golf 110TSI Life is powered by a 1.4-litre turbo-petrol four-cylinder engine sending 110kW (there it is) and 250Nm to the front wheels via an eight-speed automatic transmission with shift paddles on the steering wheel.

It’s an all-alloy unit featuring direct-injection and an air-to-water turbo intercooler with variations of it used in other VW models as well as numerous Audis, Cupras and Skodas.

VW doesn’t quote a zero to 100km/h time for the standard Golf but you can expect a number in the mid-eight second bracket.  

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 Golf’s official fuel consumption figure for the combined (urban/extra-urban) cycle is 6.3L/100km, the 1.4L turbo four emitting 143g/km of CO2 in the process.

Over a week of mainly city and suburban running with some freeway sections thrown in, we recorded an on-test average of 7.4L/100km. That’s still a respectable number in the context of the category.

Brim the 50-litre tank with minimum 95 RON premium fuel and using our real-world figure you can expect a driving range in excess of 670km.

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 Golf is a comfortable, refined and dynamically capable small hatch.

Suspension is strut front, four-link rear and combined with the 17-inch rims shod with comfy 225/45 Nexen N Fera Sport rubber the 110TSI Life manages to soak up typical suburban and highway bumps and dips well. Especially impressive for a small car with such a short wheelbase.

And despite the fact they’re trimmed in humble cloth, the front seats are super comfy and supportive.

An impressively slick 0.275 drag coefficient makes sense when you experience the modest wind noise at highway speeds.

The steering is vehicle speed and input-sensitive and road feel is outstanding. Slipping into ‘Sport’ mode and pushing through some twisting corners it feels like this humble 110TSI is a hot hatch in hiding.

The eight-speed auto transmission is smooth and taking control for more urgent shifts via the steering wheel paddles adds to the enjoyment when you’re in the mood or the need arises.

You’d never know the engine is turbocharged, with the 1.4-litre four-cylinder delivering its power in satisfyingly linear fashion, even at slow speed from low revs.

You can expect zero to 100km/h acceleration in the mid-eight second bracket with 250Nm of pulling power easily enough for confident urban lane changes and 110kW of power on tap for secure highway overtaking.

No surprise brakes are discs all around, vented at the front, and given the car weighs in at a trim 1345kg stopping power is strong and consistent.

Under the heading of general observations, the media system is quick and intuitive to use, all around vision is good despite the characteristically chunky C-pillar and although an 11.1-metre turning circle is a bit above the class average, parking is easy.  

The Golf was awarded a maximum five-star ANCAP rating from assessment in 2022, scoring particularly well in terms of adult and child occupant protection. 

Active (crash-avoidance) tech includes a suite of ‘IQ.Drive’ features including autonomous emergency braking (AEB) with pedestrian and cyclist detection, blind-spot monitoring, lane-departure warning, park assist, front and rear proximity sensors, a reversing camera, driver fatigue monitoring and more.

Worth noting if you want the rear cross-traffic alert and exit warning you’ll need to step up to the Style grade ($44,350, before on-road costs).  

If, despite all of the above, a crash is unavoidable there are nine airbags onboard - front, front side, front centre, rear side and side curtain.

For child seats there are three top tether points across the rear seat with ISOFIX anchors in the two outer positions.

That’s all on the pace for the category.

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.

Volkswagen Australia covers the Golf with a five-year/unlimited kilometre warranty, which is on par with other mainstream brands like Ford, Mazda and Toyota, but behind a dozen others including Hyundai, Kia and Skoda at seven years/unlimited km with the likes of Honda at eight and MG, Mitsubishi and Nissan at 10 years conditional.

Servicing is recommended every 12 months/15,000km and three-, four- and five-year pre-paid service ‘Care Plans’ are available, with the latter for the Golf 110TSI Life locked in at $2940, which splits out to a relatively steep $588 per workshop visit. Pay-as-you-go ‘Assured Service Pricing’ works out at $621 per service.

For reference, a comparably priced Toyota Corolla ZR hatch will set you back a flat $250 per service for each of the first five years. 

There are more than 100 Volkswagen dealers across the country covering all states and territories including main rural and regional areas.