Peugeot 3008 vs Mahindra XUV500

What's the difference?

The new Peugeot 3008 GT Premium Hybrid might not be the most spacious SUV for passengers, but it makes up for it with ample boot space and a standout design. It’s fresh-faced, interesting and packed with comfort features that elevate the everyday driving experience.

Is it expensive? Absolutely. But it also delivers a genuinely premium cabin that many rivals can’t match, along with refined on-road manners and efficiency that make it a pleasure to drive.

It doesn’t hit every note perfectly but there’s definitely a melody here worth listening to.

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 third-generation Peugeot 3008 boasts a striking silhouette, with coupe-like lines at the rear and well-proportioned overall dimensions that give it a confident, refined stance.

Signature Peugeot elements like the claw-inspired LED headlights and tail-lights lend it a distinctive, modern edge, which elevates its presence in a crowded SUV segment.

That said, the extensive use of black plastic cladding around the lower body detracts from the otherwise premium exterior and feels out of place.

Step inside and the cabin is easily one of the most captivating interiors I've been in recently. There's real design flair here: a multi-level centre console, sculpted ambient lighting panels that highlight the angular dashboard, and a rich, eclectic mix of materials. From quilted Nappa leather seats to textured grey knit fabric and brushed aluminium accents, it’s a refreshingly bold and beautifully executed space.

Add the panoramic sunroof and long equipment list, it's a cabin that you'll like to spend a lot of time in.

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.

The best part of the cabin is easily up front. There's generous space, and the seats are comfortable, even before you engage any of their functions. Longer trips have been a dream. I particularly enjoyed the massage settings, though the session durations felt a bit inconsistent.

Storage in the front is cleverly designed, with plenty of options: a sunglasses holder, a large glovebox, a phone shelf, a deep centre console and ample drink holders. It’s easy to keep the space tidy and organised.

Charging options are solid, with two USB-C ports, a 12-volt socket and a wireless charging pad.

The updated multimedia system has a screen that is wider than it's tall, making the icons small and easy to miss while on the go. I did tap the wrong one a few times!

That said, I appreciated the customisable quick-access and instrument panels, and connecting to the wireless Apple CarPlay was seamless. The touchscreen can be a little laggy, but overall the system is functional and intuitive once you're used to it.

Owing to its relatively short 4542mm length, rear legroom is tight, and the bench isn’t wide enough to comfortably seat three adults over long distances. This just makes it feel cramped for a mid-size SUV and it's something my eight-year old noticed straight away.

The seats are well-padded, though, and rear amenities are strong with directional air vents, heated outboard seats, two USB-C ports, a 12-volt socket and the usual cupholders and map pockets.

Boot space is generous at 520L with a flat load floor. The 48-volt battery means there's no spare tyre, but the powered tailgate with kick-function was a lifesaver during errand runs this week. For more flexibility, the rear row folds in a 40/20/40 split.

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.

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.

All grades of the 3008 are powered by the same mild-hybrid setup, featuring a 1.2-litre three-cylinder turbo-petrol engine that's paired with a small electric motor and a 48-volt battery. Power is sent through a six-speed dual-clutch transmission, with the system delivering combined outputs of 100kW of power and 230Nm of torque.

Performance is modest, with a 0-100km/h sprint time taking 10.2 seconds. It’s perfectly adequate for everyday driving around town and in traffic, but the lack of urgency becomes more noticeable when overtaking at highway speeds. Still, the hybrid system offers smoother low-speed acceleration and improved efficiency over the outgoing petrol-only model.

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?

The new mild-hybrid powertrain brings a solid improvement to efficiency, with an official combined fuel consumption of 4.9L/100km. Paired with a 55-litre fuel tank, that delivers a theoretical driving range of up to 1122km, which is an impressive figure for a mid-size SUV.

Over the past week, I’ve done a mix of longer highway drives, urban errands and the usual big grocery hauls. My real-world average came in at 6.1L/100km, which is still a strong result for this segment.

The system also features regenerative braking, which while not customisable, is noticeable in everyday driving. It kicks in strongly enough to give the sensation of heavy braking at times, particularly in city traffic and it reminds you that it's working behind the scenes to recover energy.

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.  

The 3008 has been genuinely enjoyable to drive. It’s easy to handle, with responsive steering and a stable, confident feel at higher speeds. The transmission generally keeps the powertrain in the right gear, only occasionally over-revving during open-road driving.

Power delivery is prompt enough for stop-start traffic and quick city lane changes. That said, there's a noticeable dip in performance when overtaking on the highway and it’s a clear reminder that this isn’t a high-output powertrain.

Visibility is generally good, though the narrow rear window can limit your view, especially when passengers or a child seat are in the back. Still, the pillars didn’t obstruct my view from the driver’s seat.

The suspension is on the firmer side, so you will feel the larger bumps, but it strikes a decent balance for everyday driving.

There’s a bit of body roll when cornering, which prevents it from feeling as sporty as its coupe-inspired design might suggest.

Parking is a breeze thanks to the clear 360-degree camera system, ample sensors and a tight 10.64m turning circle. My only gripe is that the rear camera points slightly downward, which can make the view feel narrower than expected.

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.

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.

The 3008 comes with a five-year/unlimited-kilometre warranty, which is okay but now feels a bit basic, especially when rivals like Nissan offer up to 10 years of coverage (under specific servicing conditions).

Peugeot also provides a five-year capped-price servicing plan, or you can opt to pre-purchase servicing for three, four or five years. The five-year pre-paid plan comes in at $1890, which works out to be more affordable than sticking with the capped-price option.

Servicing intervals are every 12 months or 25,000km, whichever comes first. That’s quite generous, particularly if you rack up a lot of kilometres annually.

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.