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The Aussie obsession with mid-size SUVs continues unabated and shows no signs of slowing, at the expense of sedans, station wagons, and even the humble hatchback.
Medium SUVs remained the nation’s most popular new vehicle type bar none in 2024, when once again more than a quarter of a million examples were sold – up nearly 4.0 per cent in a year when almost all other sales segments declined.
Right now, there are more than 25 separate models competing from over 20 individual brands – and that’s just those priced under $60,000. The competition is just as fierce in the mid-size luxury ($60K-plus) SUV category.
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But fully loaded, seven-seat mid-size SUVs priced from under $40,000 drive-away are few and far between, and one that may not be on your radar is the 2025 Mahindra XUV700, which comes complete with a long list of standard features, robust engineering and design, and a comprehensive seven-year warranty.
Available in three trim levels, the MY25 Mahindra XUV700 range kicks off with the AX7 priced from $39,990 drive-away, while buyers looking for even more creature comforts and a few more safety features can step up to the mid-spec AX7L for $42,990 drive-away.
Topping the lineup is the XUV700 Black Edition, which adds a black-themed aesthetics package and unique features for $43,990 drive-away.
And for customers who purchase and take delivery of any new MY25 XUV700 vehicle by the end of this financial year (June 30), there is a $3000 EOFY offer applicable to the AX7L variant, making it effectively $39,990 drive-away).
Headlining the recent updates to the Indian carmaker’s mid-size SUV, which was only launched in Australia in mid-2023, is far more family-friendly black faux-leather interior trim, which is now standard across the range and replaces the conspicuous white upholstery fitted previously.
What’s more, the AX7L shares a few key features with the more expensive Black Edition first released in October 2024, including ventilated front seats, mirror memory function, and wireless Apple CarPlay and Android Auto connectivity.
While the Black Edition goes one step further cosmetically, with a more menacing blackops look, all XUV700s offer a rugged, if not handsome, exterior design highlighted by distinctive LED lighting signatures at both ends, and flush-fitting smart door handles from mid-range level.
I particularly like the rear-end treatment – it is cutting-edge, contemporary, utilitarian, and robust all at the same time.
And while the value-for-money pick is undoubtedly the entry-level AX7 priced under $40k, it’s far from a stripped-out, cut-price offering. In fact, it’s quite the opposite.
Instead, the base XUV700 serves up a full suite of luxury features, including highlights such as auto LED headlights with auto high-beam and cornering lights, a panoramic sunroof, and a leather-wrapped steering wheel and gear shifter.
There’s also dual-zone climate control, rear air vents and a dedicated blower for third-row occupants (who also score cupholders), dual high-resolution 10.25-inch digital screens (infotainment and instrument cluster), tyre pressure monitoring, and rain-sensing wipers.
Step up a notch and the AX7L adds a quality 12-speaker Sony 3D audio system, ventilated front seats, wireless Apple CarPlay and Android Auto, and a wireless phone charger.
The Black Edition effectively adds a comprehensive black exterior pack, including the grille and wheels, while dark chrome highlights feature inside.
The XUV700 cabin has a handsome design with nicely bolstered front seats perched relatively high for a commanding view all around, but with plenty of adjustability, too.
One CarExpert reviewer called the interior ‘Benz-like’ and cited the powered-seat controls mounted on the door cards. They do look familiar.
It’s a smart look, with tasteful brightwork and ample piano black surfacing adding a touch of class, but remember to put a microfibre cloth in the glovebox to erase the finger marks.
Mahindra also strikes a good balance between physical dials and on-screen menus, unlike many of the latest auto brands arriving in Australia, which place far too much reliance on the latter, making it challenging to adjust key functions while on the move.
The XUV700 offers knobs for both audio volume and climate controls, prioritising practicality above all else.
There are also plenty of storage spaces for keys, wallets, phones and cups, while charging ports are plentiful across all three seat rows.
Stretching to just under 4.7m overall, the XUV700 is much longer than the most popular medium SUVs and almost as long as many large SUVs. It provides ample space for passengers in all three rows and plenty of cargo capacity, especially with the third row folded.
In an age when space-saver spare wheels are a treat and tyre-inflation kits are the norm, there’s also the peace of mind that comes with the full-size spare that comes standard in the XUV700.
On the safety front, there are up to seven airbags (six in the entry-level AX7) and a comprehensive suite of Advanced Driver Assistance Systems
(ADAS), including autonomous emergency braking (AEB), adaptive cruise control, lane-keep assist, post-collision braking and a reversing camera.
The AX7L gains additional safety features including blind-spot monitoring, a surround-view camera, driver’s knee airbag, and adaptive cruise control with stop/go.
Under the bonnet is a 2.0-litre turbocharged four-cylinder petrol engine which produces 149kW of power and 380Nm of torque. This all-aluminium unit dubbed mStallion was developed and built in-house by Mahindra and has been noted for its refinement and smooth power delivery.
Power is delivered to the front wheels exclusively via an Aisin six-speed automatic transmission.
CarExpert reviewers praised the XUV700’s ability to accelerate confidently with relatively few revs on board, citing that it felt more like a turbo-diesel than a small-displacement turbo-petrol engine.
“This makes for a comfortable, effortless and stress-free driving experience,” said one.
High-speed touring is also a breeze in Mahindra. At around 95km/h, the transmission kicks into top gear while maintaining revs just below 2000rpm, and that’s great for overall cabin ambience.
Fuel-efficiency is another welcome benefit of this 2.0-litre turbo engine. While Mahindra claims an average fuel economy of 8.3L/100km, we saw a figure as low as 7.7L/100km over a test distance of 1840km.
That’s good news for families travelling longer distances interstate or for weekend getaways, as the XUV700 only requires 91-octane standard unleaded with a 60-litre fuel tank capacity.
Ride compliance is another strong attribute of this mid-size SUV, particularly over pockmarked suburban roads.
There’s MacPherson strut front and multi-link rear suspension systems, and Mahindra’s proprietary Frequency Selective Dampers. The result is high damping force over speed bumps to provide solid composure, while still allowing for good ride comfort on bumpier roads thanks to low damping force.
Not only will budget-conscious buyers find the XUV700’s price points particularly appealing, given the vehicle’s seven-seat capacity, fully loaded cabin, and all-around competency, but Mahindra’s standard seven-year/150,000km warranty, seven years of roadside assistance and low ownership costs also make it a bang-for-buck winner.
The 2025 Mahindra XUV700 should stand out in the mid-size SUV category for budget-conscious families requiring seven-seat capacity, because it also offers all the bells and whistles of more expensive makes and models.
Mind you, it’s not just the unbeatable drive-away pricing that demands consideration; it’s also the combination of a refined powertrain, generous standard equipment, and generous aftersales provisions.
Head to your nearest Mahindra dealership to take a test drive and be as surprised as we were at CarExpert, or jump online at mahindra.com.au/special-offers.
