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What's the difference?
The 2008 is kind of a big deal for Peugeot - the old car was a bit niche and people didn't really know what it was. It also had a whiff of last-decade Peugeot whereas this one is proper 2021, fashion-forward Peugeot. The brand has changed so much in the past few years that it's even going to slap a new logo in its big grilles in the coming months.
Peugeot's product strategy was missing that important, late-millenial/early Gen X grabbing compact SUV, a cheaper entry to the brand that attracts fans of good design with a plenty of readies in their pockets. Basically the people Mini's Countryman, BMW's X2, Audi's Q2 and VW's T-Roc and T-Cross are going after. So not an easy task, then.
The local importer knows it needs to find younger customers to hook into the brand, because the halo of its turn-of-the-century success, the 306, has now faded. People like me will buy Peugeots because they wanted a 306, are Francophiles or are just plain contrarian (in my case, all three). Peugeot needs an in. The 2008 might just be it.
Just in case attacking Australia's crowded SUV market with a virtually unheard of Indian brand wasn't a high enough hurdle to leap over, Mahindra had made its task even harder - think a Bollywood version of Mission Impossible - by launching its XUV500 SUV here with a diesel engine (which nobody wanted) and a manual gearbox (which few could even remember how to use).
Fortunately, it fixed one of those issues late in 2016, finally adding an automatic transmission to the line-up. And now, at long last, it's fixed the other.
This, then, is the petrol-powered XUV500 SUV. And, on paper at least, it's the most sense-making Mahindra to date.
For one, it's a ferociously cheap way into a new seven-seat SUV. For another, it's pretty well equipped, even from the base level. There's a long warranty, an equally long roadside assistance offering, and there's capped-price servicing, too.
So, should the mainstream SUV players be looking over their shoulders?
Spoiler alert: no.
The 2008's score is slightly hurt by the price and the lack of advanced safety features (mostly reverse cross-traffic alert) but is boosted by the fantastic looks, great dynamics and avant-garde interior. While it certainly isn't the cheapest compact SUV, it certainly is one of the most stylish and, in some ways, innovative.
Peugeot has a mountain to climb in Australia, a hangover from more than a decade of indifferent or oddball cars. The 2008 is a key plank of its premium strategy and that will become more important when it throws the full EV e-2008 at us later this year, or early next. This 2008 is the car to grab those younger buyers, I just wonder if they're keen enough to stump up the cash.
This petrol-powered and well-priced XUV500 W6 might mark Mahindra's most convincing effort at cracking Australia's congested SUV market, but we're still not completely convinced.
That said, it's certainly cheap, the ownership credentials stack up and it's a very comfortable way to transport seven people.
The 2008 is a cracking looking machine, with a lot of what looks like Audi Q2 in profile (and detailing). It fooled a few passers-by, including the regular, "What have you got this week?" crew of neighbours. It's a brilliant design, sporting the 508's big light-up fangs and the cat's claw segmented taillights. Chunky but not self-conscious, it's great to look at.
Peugeot cabins are brilliant these days, with clever, interesting designs that I think are really challenging the way other carmakers think about what to put in front of the people in the front seat. The i-Cockpit works well in the SUVs (m'colleague Richard Berry will likely disagree), but the excessively cool 3D dashboard - with a screen that looks like it's floating in front of you like a hologram - really helps push the idea that the price being asked is actually quite reasonable. Lovely materials throughout, cool detailing, lots of thought and even usable cupholders. It's mad in all the right ways.
There's no getting away from the fact the XUV500 is not the sleekest, prettiest SUV in the pack. But it's not ugly, either. More that it looks like it's doing its best with a design philosophy hatched a generation or two ago.
Its best angle by far is when viewed straight on, where the piano-black grille, dual bonnet bulges and complicated (read: a little weird) headlight clusters all add some road presence to Mahindra's only SUV.
A side-on viewing, however, is less satisfying, where a combination of strangely placed and super-sharp body creases (including one over the rear wheelarch, which adds a Harbour Bridge-style crescent to the otherwise-straight window line) and serious rear overhang give the XUV500 an inescapable awkwardness.
Inside, expect a vast collection of rock-hard (though nicely patterned) plastics, with the ambiance rescued somewhat by the clean-looking and vertical central control unit, which is home to the media screen and air-con controls.
Ready for some hashtag real talk? There are better-looking and better-feeling seven-seat SUVs out there. But there aren't many that start at $25,990 drive-away. And I think that's Mahindra's point.
Starting with the bad stuff, what is it with carmakers - and fellow French carmaker Renault was front and centre in my head here - not putting a rear armrest and cupholders in SUVs? These are cars that can fit families, so neglecting the rear passengers seems weird and sloppy. You can kind of forgive a $25,000 Kona Go (RIP), but not a $35,000 premium product. A small but irritating detail.
Up front, you do get useful cupholders, a small centre console bin and glove box and the doors will hold bottles. There's a dedicated spot for your phone, too, which is nice.
The boot is a gigantic 434 litres, beating pretty much every other car in the space that's not from France, and with the 60/40 split-fold out of the way, you have 1467 litres at your disposal. There's also a false floor on the boot that you can either remove or use to separate valuables or muddy/stinky/sandy outdoorsy stuff.
Pretty damn practical, actually, regardless of whether you want to carry people or cargo. Carrying both at the same time, however, is tricky.
But let's start with people. There is a huge amount of room in the third row of the XUV500, a space with enough head and legroom to put plenty of its competition to shame.
Thanks to second-row seat backs that fold flat, before the the entire seat lifts up and pushes forward, climbing into seats six and seven isn't too big a drama, either.
We rarely say this about seven-seat cars, but at 175cm, I'd feel plenty comfortable back there on a longer drive. There are two air vents in the third row, too, along with bottle storage and side-seat storage for thin items.
All XUV500's are fitted with a 70-litre fuel tank.
The space in the middle row is ample as well, and you'll find three ISOFIX attachment points, one for each of the three seats. There's also a door pocket in each rear door and storage nets on the rear of the two front seats. A pull-down divider that separates the back seat is home to two cupholders, matching the two for front seat riders.
The only downside to all this people-lugging happiness is that, with the third row of seats in place, there is absolutely no room for luggage. Mahindra doesn't quote a litre storage figure when seven are seated (mostly because it would probably be embarrassing to write "one litre"), but trust us, you'll be lucky to squeeze a soft backpack in the boot with all seats in place.
Things improve considerably when you drop the third row of seats, though, which unlocks 702 litres of storage, and that number climbs to 1512 litres with the second and third row folded down.
Peugeot is trying to mark itself out as a premium offering, with no bait-and-switch entry-level machines displaying startling prices. The 2008 Allure costs about the same as the top-spec Renault Captur, which is loaded up with gear. It's also gunning at mid-spec Korean, Japanese and German compact crossovers.
For $34,990, you get 17-inch alloys, a six-speaker stereo, climate control, reversing camera, keyless entry and start, cruise control, 3D digital dashboard, auto LED headlights, fake leather trim along with cloth (nothing wrong with that), power windows and mirrors, a lot of safety gear and a space-saver spare.
The media system is an updated version of Peugeot's familiar stack and it's quite good on the small 7.0-inch touchscreen (small, as in "other cars this size are getting bigger ones") and has Apple CarPlay, Android Auto and DAB. The screen is snappier than past offerings from Peugeot which is a good thing, because the old one in the 3008 was glacially slow.
Make no mistake, this Mahindra kills the competition on price. The entry-level W6 version will cost you a lean $25,990, while the fruited-up W8 version will set you back $29,990. You can even have an AWD W8 for $32,990. The best part? All of those are drive-away prices.
Go for the W6, and you can expect 17-inch alloy wheels, cloth seats, air-con with vents (powered by a second compressor) in the second and third row, cornering headlights with DRLs, front and rear fog lights, cruise control, rear parking sensors and a 6.0-inch multimedia screen linked with a six-speaker stereo.
Spring for the W8, and you'll add leather seats, a reversing camera, tyre-pressure monitoring and a bigger, 7.0-inch screen with standard sat-nav.
The Puretech 1.2-litre three-cylinder is a cracker of an engine and I won't hear a bad word against it. Partly because nobody ever says bad things about it. In the Allure, it's in 130 specification, which means 96kW and 230Nm of torque. The power figure is in line with almost everything in the class and the torque figure is good for the segment, especially considering the 1267kg kerb weight.
Driving the front wheels via a six-speed Aisin-supplied automatic, the Allure will complete the sprint to 100km/h in under 10 seconds. It feels quick enough, but that might be the torque curve filling in after a tardy start. If you're willing to drop another nine grand, you can have 114kW, eight gears and a slightly quicker 0-100km/h time.
There's a diesel engine currently available, but the clock is ticking - Mahindra expects it to be phased out within six months. But the big news here is the new petrol engine, a turbocharged 2.2-litre unit good for 103kW/320Nm. It's paired exclusively with an Aisin-developed six-speed automatic transmission, and will send it's power to the front or all four wheels.
Mahindra doesn't quote official performance figures, but those engine outputs hardly scream excitement, do they?
Peugeot says the Allure completed its government-mandated testing with a 6.5L/100km combined cycle figure while huffing out 148g/km of carbon dioxide.
I managed 6.8L/100km driving as I normally would around the suburbs and with some fast roads in the mix. That's an impressively close number to the official figures and lines up well with the more accurate WLTP findings.
Local numbers are yet to be confirmed, but after an admittedly vigorous local test, the on-board computers was reading 13+ litres per 100km. All XUV500's are fitted with a 70-litre fuel tank.
My first experience with the 2008 was in tipping rain on the same day I drove the 5008, so it was nice for the sun to shine during the time I had it. Dry roads and Peugeots are way more fun, although it was uncommonly wet on my first attempt.
What struck me about the 2008 is how sure-footed it is, even on the cheap-ish tyres fitted. It has that lovely, pointy Peugeot feel of the other cars in the range, which is partly to do with the hilariously small steering wheel but mostly because they're just so well set up.
The 2008 handles all the nastiness of suburban streets, even with torsion beams at the rear, something European cars somehow make work with almost magical effect. It's also very quiet inside, whether it's wind, tyre or engine noise, none of which make much impact on the occupants.
The transmission and engine work extremely well together, so well I don't think I resorted to the paddles even once to hurry things along. Quite a few cars in this class either have a whining continuously variable transmission or a sometimes-clunky twin-clutch auto. The smoothness of the Aisin six-speeder is excellent and it seems to know where the turbo lag is, and shifts accordingly. It also picks up when you want it to, wringing every last drop of torque out of the engine when you need it most. The car does slow noticeably when loaded up, but you'll get that in every other car in the class, too.
About as old school as rocking a pair of button-up tracksuit pants with a Run-DMC cassette stuffed into your Walkman.
On a straight and unchallenging road, there's stuff to like about the petrol-powered XUV500. The engine, while gruff under heavy acceleration, doesn't feel too wheezy when you're not asking a great deal of it, and nor is the cabin overly loud at suburban speeds. It's a comfortable space for driver and passengers, too, and the gearbox performed seamlessly on our short test drive.
But that's about where the good news ends. There's an unshakeable agricultural feel to the way this Mahindra SUV goes about its business, and nowhere is that more obvious than through the steering wheel, which has only a vague and difficult relationship with the the front tyres, making it seriously tricky to approach twisting roads with anything approaching confidence.
The steering is slow and cumbersome - light when you first begin turning the wheel, with a ton of weight appearing by surprise midway through the cornering process - and it has a tendency to fight back should the front wheels find a bump or corrugation in the road, too.
The body lolls about when challenged, too, and the tyres are quick to give up their grip on tighter corners. All of which would give it a certain retro charm if it wasn't so very new, and I must admit I was cackling maniacally on some of the more twisting roads.
But it's simply not a car I could live with.
The Allure has six airbags, ABS, stability and traction controls, forward AEB, lane-departure warning and lane-keep assist.
The forward AEB works between 10km/h and 180km/h, with daytime pedestrian detection up to 60km/h and cyclist detection up to 80km/h.
It is missing reverse cross-traffic alert and if you want adaptive cruise, auto high beam, blind-spot monitoring or lane-keep assist, you have to step up to the GT Sport.
Expect dual front, front-side and curtain airbags (though the latter don't extend to the third row of seats), along with rear parking sensors and ESP. Stepping up to the W8 trim adds a reversing camera with dynamic guidelines. The XUV500 was awarded a four-star (out of five) ANCAP assessment when tested in 2012.
Peugeot's five-year warranty, five-year capped-price servicing and five years of roadside assist is a solid, if unspectacular offering. Which is a bit rude, because three years ago we'd have been bowing at Peugeot's feet for such generosity. It's a thankless business.
Servicing comes around every 12 months/15,000km, which is pretty good going for a turbo engine in this class (except, of course, Renaults, which go for 30,000km) and you'll pay, on average, $447 per service, which isn't awful, but is not cheap either.
All XUV500s are covered by a five year/100,000km warranty (though the final two years apply only to the drivetrain), along with five years of complimentary roadside assistance.
The XUV500 is also covered by Mahindra's capped-price servicing program for the first three years of ownership, and will require servicing every six months or 10,000km.