Toyota RAV4 vs Mahindra XUV500

What's the difference?

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.

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 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.

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.

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.

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.

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.

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?

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.

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.  

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.

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 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.

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.