Volkswagen T-Cross vs Mahindra XUV700

What's the difference?

There are so many new little SUVs out there and it might be easy to think they’re all the same - a tiny cheap SUV is just a tiny cheap SUV. But I’m convinced the Volkswagen T-Cross isn’t like the others.

Yes, it’s tiny and relatively cheap, but it can do more than most of the others from the storage and space it offers to the value-for-money and its level of refinement. Then there’s the way it drives - which can’t in my books be matched by any of its rivals.  

The sweet spot in the range is the entry grade Life. At $35K drive-away the value is best and with no difference in engines between the grades there are no huge reasons to step up higher in the range unless you have the money.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

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 T-Cross is Volkswagen’s smallest SUV at 4.1m long and even though it’s closely related to the little Polo hatchback it looks more like a mini version of the Tiguan.  

It might be tiny and relatively affordable but it has Volkswagen’s premium looks and sharp styling, with creases in the panels so crisp it looks like somebody just ironed it.

This update has brought new front and rear bumper designs, and new styling to the LED running lights and tail-lights. That’s typically how car companies do exterior design updates, inside the styling changes are pretty minimal, too.

There’s new dashboard design and new media screen, but again the design and quality feels refined and high quality, which I can't say goes for a lot of this car's rivals.

The entry-grade Life misses out on the cross design tail-lights of the Style and R-Line, and gets hubcaps rather than alloy wheels like the other two grades.

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. 

You really should take a look at my video to get an idea of how good space and storage is in the T-Cross. I’m tall at 189cm but I can drive with plenty of elbow room and legroom. The front seats also have really long bases which offer great under-thigh support, too.

Legroom in the back is great for the class and I can sit behind my driving position without my knees touching the seatback, while headroom is excellent, too. The second row also slides on rails to increase the boot side which is enormous for the class at 455L.

The second row doors also have large apertures making entry and exit easier.

Cabin storage is great with giant door pockets in the front and back, a wireless phone charger with four USB-C ports (two in the front and two in the second row).

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.

The Mahindra XUV700 is offered in two model grades, both powered by the same petrol engine. It all kicks off with the AX7 from an affordable $39,990, drive-away.

The focus of this review is the AX7L which tops the range at $42,990, drive-away, which is still great value.

At this price the Mahindra undercuts most mainstream medium SUVs like the Toyota RAV4 and Mazda CX-5 and lines up more closely with the GWM Haval H6 and MG HS from China.

But unlike most of the mid-size SUV set, the XUV700 has a third seating row. The only other offerings in this category to boast that option are the Honda CR-V, Mitsubishi Outlander and Nissan X-Trail, - all of which are more expensive for an equivalent seven-seat grade when factoring in on-road costs.

For the model year 2025 update, both Mahindra XUV700 grades gain all-black interior trim, while the AX7L updates to wireless Apple CarPlay and Android Auto, as well as ventilated front seats with memory settings for the power function.

Standard gear in the AX7L includes a panoramic sunroof, dual 10.25-inch screens, synthetic leather trim, keyless entry and start, a 12-speaker audio system, wireless charging and a leather steering wheel.

You also get a 360-degree surround-view monitor, Bluetooth, rain-sensing wipers, dual-zone climate control, 18-inch alloy wheels and an electronic park brake.

The only option available is premium paint at $495 extra, including the 'Midnight Black' shade on our test car.

This isn’t top-grade luxury car levels of standard gear, but there's very little that’s missing and for $43K, that’s impressive.

The T-Cross has a 1.0-litre three-cylinder engine which sounds tiny and it is, but it's turbo-charged and the 85kW/200Nm it produces is plenty of grunt to move this little SUV which at just under 1.3 tonnes is relatively light. 

All grades in the T-Cross line-up have this same engine and there’s no high-performance variant, although the R-Line has selectable drive modes. Every T-Cross is front-wheel drive with a seven-speed dual-clutch auto transmission. 

This three-cylinder is a mighty little beastie with a growly tone to it. There is some turbo lag during stop-start city driving, but it’s so eager to play that if it was a dog it’d be a Jack Russell with every intention to chase anything it sees but no idea how small it is.

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.

Smaller engines use less fuel than larger ones and the 1.0-litre three-cylinder in the T-Cross is little and Volkswagen says over a combination of open and urban roads it uses 5.6L/100km.

That’s fuel efficient but these days larger SUVs with hybrid systems are achieving the same low consumption. Toyota’s Yaris Cross is available with a hybrid system and will use about 3.8L/100km.

Volkswagen doesn’t have a hybrid version of the T-Cross, but it should, especially given these little cars will spend more time in urban environments where fuel consumption will generally be higher.

That said, most tiny SUVs don’t have hybrid systems so that makes the Yaris Cross exceptional while the T-Cross is about average.

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.

Quite possibly the best little SUV to drive for this price and size, the only drawback is that there’s a touch of lag in the time it takes the power to arrive at low speeds in stop-start traffic, but that can be remedied by putting the transmission in 'Sport' mode.

The steering is light and accurate, the visibility is excellent thanks to the big windows and raised ride height, the pedal feel under your feet is great and the brakes are responsive.

The car feels stable, planted and secure whether it's on a motorway, or a winding country road, while the little 1.0-litre engine is a champion that keeps punching with a throaty growl that matches its enthusiasm.

The seven-speed transmission is superb and changes gears fast, while the paddle shifter lets you take control to keep the revs high.

These little SUVs aren't sports cars but some are so underwhelming to drive it feels like performance was never thought about while developing the vehicle.

But the T-Cross made me grin until my face hurt on the steep winding hairpin filled roads we tested it on at its launch. 

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 XUV700 is yet to be assessed by ANCAP so it currently doesn’t have a score.

The standard safety list is solid without being exceptional, and it includes seven airbags in this grade, with the curtain airbags stretching all the way back to the third seating row. However, it misses out on a front centre bag.

In terms of driver aids and advanced driver assistance (ADAS) tech, it also comes with adaptive cruise with stop & go, auto emergency braking, lane keep assist, lane departure warning, traffic sign recognition, tyre pressure monitoring, blind spot monitor and a pilot assist function. It lacks a rear cross-traffic alert.

The reversing camera lags when you put the car in reverse, taking a couple of beats to kick in. Not great when you’re trying to park on a busy street.

The adaptive cruise needs further calibration. When the system detects a car in front, it slows the Mahindra down a little too dramatically and takes too long to respond.

The T-Cross is covered by Volkswagen’s five-year unlimited kilometre warranty.

Servicing is recommended every 15,000km or yearly and while there’s no capped price servicing you can buy a five-year plan for $2800, which equates to $560 per workshop visit.

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.