Mahindra XUV700 vs Honda CR-V

What's the difference?

We love a car which subverts expectations, and for the most part, the XUV700 has managed to. It feels like the brand has leapt over a few steps when it comes to design, quality, and particularly drivability, which bodes well when you combine it with a bargain price, a good equipment list and solid packaging.

The question is: Does the Australian market have room for yet another value player in a space already so well occupied by Chinese newcomers? Only time will tell.

The most-expensive version of the latest Honda CR-V is one of the most convincing family-orientated mid-sized SUVs in Australia, regardless of price and positioning.

For efficiency, economy, driveability, packaging, safety, quality, refinement and value-for-money, it is an outstanding value proposition. Don't buy a RAV4 or Forester hybrid before checking this one out.

We cannot wait for the e:HEV hybrid powertrain to filter down to cheaper grades, to make the best CR-V in decades even more accessible.

The XUV700 is a clean-sheet design on an all-new platform and it shows. There are still echoes of the past in this SUVs bodywork, with the raised rear haunches and traditional Mahindra-shaped grille, but it feels like it’s taken a massive leap into the 21st century this time around.

It has a strong modern flavour and presence on the road, which doesn’t feel more than a generation behind like previous Mahindra offerings. Gone are the awkward curves and frumpy edges of its predecessors, and instead we’re welcomed by a more refined face, nipped and tucked rear with sporty touches, tough haunches and a contemporary overall look.

Inside the most dramatic upgrades have been deployed, including the impressive digital suite, seemingly decent software with a quick, responsive, and customisable instrument cluster, a new more attractive steering wheel, and a much smoother flow and coherency to design which we haven’t seen before from the Indian giant.

There are only a handful of areas, like the dorky elongated shifter, some hard plastics in the doors and atop the shapely dash, and the manual handbrake in the base car to remind you of its bargain price-point and origins.

It’s nice these attributes unite for an uncontroversial and modern overall feel, and quality is feeling on-par, but it’s also hardly original.

The headlights and steering wheel look like they could be worn by any Renault, the tail-lights look like they belong on a Nissan, and the dual-screen dash and door-mounted electric seat controls are clearly meant to emulate Mercedes.

Actually, one for the switchgear nerds, the function stalks are from the SsangYong parts bin, a holdover from when Mahindra owned the Korean automaker. Still, if you’re going to take inspiration, I can think of worse places to take it from, and it’s frankly remarkable all these pieces of inspiration fall together so well.

Though considered handsome, the CR-V has never been a style leader. Function over form has always been its calling card, and Number Six is no exception.

Cleanly drawn, with boxy proportions and a blunter, squarer nose providing a contemporary if somewhat bland appearance, the Thai-built Honda lives on the larger end of the mid-sized SUV scale, resulting in lots of space and practicality.

Yet there are interesting and worthwhile details to explore, like narrower-than-usual windscreen pillars for exceptional forward vision.

The same applies to the considered positioning of the exterior mirrors, minimising blind spots, while deep glass areas allow light to flood in.

The stylish, Volvo-esque L-shaped tail-light graphic probably connects most clearly with past CR-Vs, giving the latest version an elegant overall presence.

Compared to the old model, the latest version's wheelbase has been stretched by 40mm to 2700mm, while front and rear tracks are 10mm wider, coming in at 1611mm and 1627mm, respectively.

Note that the front-drive models' ground clearance is 198mm – 10mm less than on the (non-hybrid-only) AWD grades.

Low-cost options in the mid-size SUV space usually get a bunch of basic stuff wrong. Laggy, ugly software, for example, is prevalent in the MG HS, while clumsy switchgear takes away from the Haval H6, and a particularly awkward driving position is notable in the LDV D90.

Mahindra’s XUV700 does not fall into these traps. The front seat feels spacious and airy, the seating position is high but not unsettling, and the thing which took me aback the most is the way everything works.

It’s a little annoying the base car gets no telescopic adjust and misses out on a second bottle holder because of the manual handbrake, but other than this, the ergonomics in the cabin are solid. A centre dial, for example, can be switched from navigation controls to function as a volume dial if desired, and there are plenty of shortcut buttons for the multimedia and the dual-zone climate making it a breeze to adjust things on the move.

For storage there is a large bottle holder and map pocket in each door, a large bottle holder (two in the case of the AX7L) in the centre, a bay under the climate unit good for phones and wallets (it is a wireless charging pad in the AX7L), and there’s a deep armrest console box between the front occupants.

The second row is also airy and spacious, with a nearly flat floor making even the centre position seemingly suitable for an adult. Behind my own seating position I had plenty of space at 182cm tall, and there are a set of adjustable air vents plus a slot for a phone, a USB-C charging outlet, and large bottle holders in the doors.

The third row? It’s not bad, but I’ve sat in better. The left-hand side second-row seat folds up and rolls forward, making access better than some of its rivals, but behind the second row my knees are hard up against the seat in front, and my head is touching the roof. There’s decent amenity; a bottle holder on each side and an adjustable air vent with a fan controller, but this is a space best left for kids.

Mahindra doesn’t have an official boot capacity number to give us yet, but predicts it will be over 700 litres given the dimensions. With the third-row folded it looks cavernous, but with it deployed you’ll be lucky to get a day bag in behind.

For those interested in towing, the XUV700 can tow a 1500kg braked trailer (750kg unbraked) and there’s halfway decent ground clearance, at 196mm.

Little wonder the CR-V was the world's third most-bought SUV worldwide in 2023. It's big enough for most families' needs... and then some.

This is immediately apparent the moment the big doors are opened up nice and wide, revealing an airy, spacious and extremely user-friendly interior.

The Japanese brand has striven successfully for greater visual symmetry, harmony and operational simplicity in the dashboard's design and layout.

And, sure, the 9.0-inch touchscreen lacks the wow factor of vast buttonless displays as found in flashy alternatives such as the disappointing Chery Tiggo 7, but it works very effectively.

Hondas have always nailed the driving position bit down pat, and the RS is no exception, with ample seat and steering column adjustment, considered controls placements and unimpeded views of the instrumentation and road ahead due to the aforementioned thin pillars.

The instrumentation cluster is an electronic set-up offering the driver the choice of either super crisp and ultra-clear analogue dials, or somewhat fussier bar graphs, with a digital speedo augmenting both.

There's so much to enjoy and so little to criticise inside Honda's mid-sized SUV. Along with space to stretch, the front seats are notably comfortable and supportive, as several hundred kilometres sat ensconced in them proved. Both sides have electric adjustment at this price point, too.

Ventilation also rates highly, with the honeycomb full-dash-length grille and lovely toggle switches bringing aesthetic and tactile delight, respectively.

And, reflecting the CR-V's US focus, storage is on a large and helpful scale, offering bottle holders in the doors amongst other places to stash things in and on.

Moving to the rear seat area, entry/egress is ridiculously unimpeded, with a decently-shaped bench.

Families are also likely to appreciate series-best legroom, backed up by a handy amount of girth – always a good thing.

You're also met with occupant-facing air vents, overhead grab handles, even more door storage, the obligatory folding centre armrest with cupholders, front-seat-sited map pockets and a pair of USB-C outlets.

However, the standard sunroof does rob some headroom so people taller than about 180cm had better try before they ride, though the 60/40 backrest reclines to 16 positions and that's helpful here.

Being a hybrid, the RS e:HEV misses out on the sliding bench which adjusts by 190mm in other CR-Vs.

Vision out is exemplary back there, enhancing an already spacious and airy ambience. But if the front seat area majors on Japanese quality, the rear is hardly premium, with plenty of dreary cheap plastic trim, betraying the Honda SUV's focus on the price-driven American market. But nothing squeaked, rattled or broke, thankfully.

Further back, the tailgate rises remotely quickly enough, and there's quite a wide and long area to store things, but the electrification elements make for quite a high and uneven floor – though a deep bin area is also provided to hide stuff in.

There's also just a can of goo in lieu of a spare wheel.

Cargo capacity rises compared to the previous CR-V, ranging from 589 litres with the rear seats up, to 1636L, or 1072L if measured only to the window line.

At the time of writing, choosing the hybrid version over the regular petrol-turbo CR-V means forking out for the top-of-the-line RS. Less expensive (and luxurious) hybrid grades are expected soon.

Starting from $59,900 drive-away, it isn't cheap, especially as its two closest rivals – the RAV4 Cruiser Hybrid and Nissan X-Trail Ti e-Power e4orce – offer all-wheel drive (AWD) for around the same price, while the Honda is front-wheel drive only.

At least the RS e:HEV isn't short on equipment, especially safety, with 11 airbags, Autonomous Emergency Braking (AEB), blind-spot alert, lane-keep assist, rear cross-traffic alert and adaptive cruise control included. Check out our safety section below for more details.

Being the CR-V flagship, you'll also find adaptive LED headlights, a panoramic sunroof, dual-zone climate control, leather upholstery, powered and heated front seats, a 9.0-inch touchscreen, sat-nav, wireless Apple CarPlay/wired Android Auto, Bose premium audio with 12 speakers, digital radio, a wireless charger, privacy glass, hands-free powered tailgate, roof rails, front and rear parking sensors and 19-inch alloys.

Note, however, there is no spare wheel, just a tyre-repair kit. Not good enough. For why, please see the Cost of Ownership/Warranty section.

There's also five years' free subscription to 'Honda Connect', bringing remote-control operation for climate control, lights and locking/unlocking, trip log data, location status, geo-fencing and emergency callout.

What's missing? Along with the aforementioned AWD, some rivals at this price point include larger alloy wheels if that's your thing.

Otherwise, the RS e:HEV brings plenty of features to the table. Sadly, not of the picnic variety, however, unlike in the first two generations of CR-V (1997 and 2001).

There’s just one engine for the XUV700 for now, a 2.0-litre turbocharged four-cylinder designed in-house at Mahindra.

Power outputs are comparatively impressive at 147kW/380Nm, especially when lined up against the old 2.5-litre non-turbo units powering some rivals.

The power is channelled to the front wheels via a six-speed Aisin-sourced traditional torque converter automatic. For a keen driver this is preferable to a CVT or a dual-clutch, so this sits well with us.

Overseas there is also the option of a 2.2-litre turbo-diesel (136kW/450Nm) with all-wheel drive, but this is yet to materialise for the Australian market.

The CR-V hybrid is powered by a 2.0-litre four-cylinder direct-injection Atkinson Cycle petrol engine.

Married to a pair of electric motors that make a combined power output of 152kW, it delivers a system total of 135kW at between 5000rpm and 8000rpm, as well as an impressive 335Nm of torque from 0-2000rpm.

It sends drive to the front wheels via a single-speed electric continuously variable transmission (e-CVT), featuring deceleration paddles that help redirect regenerative braking energy back into the battery.

Tipping the scales at 1771kg (kerb), the power-to-weight ratio is 76.2kW/tonne. Not great, but the e:HEV's brawn lies in its hefty torque output.

Efficiency is officially rated at 8.3L/100km for both XUV700 grades, which is not bad but not great. Understandable for an SUV which weighs in excess of 1800kg powered by a 2.0-litre turbocharged engine.

We didn’t pull an as-tested fuel number this time around as we were hopping in and out of different vehicles, so standby for a more detailed analysis when we have one for a week-long follow-up test.

The fuel tank comes in at 60 litres, for a theoretical range of roughly 723km.

Hoping to hold out for a hybrid? Don’t. Mahindra isn’t working on one. Look to its incoming fully-electric BE sub-brand instead.

Like Toyota's hybrids, Honda's do not need to be plugged in; the small 1.06kWh lithium-ion battery fitted is charged by either the engine or via regenerative braking energy.

Honda says the e:HEV RS on the Urban, Extra Urban and Combined cycles should average 4.9, 5.8 and 5.5 litres per 100km, respectively. The latter figure equates to a carbon dioxide emissions rating average of 125 grams/km.

Fitted with a 57L fuel tank, that means the driver can expect to achieve about 1035km between refills – and on 91 RON regular unleaded petrol at that.

Out in the real world, we managed a still-laudable 6.5L/100km during our time with the RS e:HEV, achieved through a mixture of inner-urban and open-road driving.

It’s good. Surprised? Me too.

The XUV700 is good to drive in a fundamental way which is not the case for its Chinese rivals. There’s no impending feel of understeer or clumsy dynamics on show. The XUV700 is controlled and solid on the road, with a surprising level of refinement in the cabin.

Visibility is plentiful, and while power from the turbo engine isn’t quite as urgent as the figures initially suggest, it’s more than enough for a family commuter. Even the six-speed transmission is smooth and unobtrusive, unlike many dual-clutch or CVT options in this space. There isn’t even any noisy engine surging, with the unit here feeling refined and distant.

It’s almost ready to duke it out with more established rivals, but there are still flaws. The steering, for example, is very light. This will make it easy to control in low-speed parking situations, but it lacks any kind of feel or feedback at speed.

The ride is comfortable, perfect for its family intentions. Mahindra utilises a multi-chamber system here to achieve unusually competent response over a host of different surfaces, especially rare for a vehicle at this price or in this category. Everything comes at a cost, though, and the cost of this system is a fair bit of body roll in the corners, and a bouncy nature over undulations. 

Fundamentally, though, this car is solid. Nothing proved this more than the brand letting us drive its family SUV on a track at speed. What seems like a silly stunt is an important vote of confidence in the way this car handles, because it’s at track speeds and conditions where all the ugly characteristics will come to the fore.

While it’s certainly no track hero, what was most impressive is despite its rolly suspension and ultra-light steering, there were no major red flags about this car which stood out. It’s solid, and Mahindra knows it. I’d dare MG or GWM to do the same with the HS or H6.

What does all this mean for you? The car has safe road holding and confident dynamics, as well as the comfort for your family. It’s not as razor-sharp as the Japanese or Korean competition, but it’s better than all of its low-cost rivals.

If the good-looking e:HEV RS's compelling value and great interior don't convince, then the driving experience might.

Building on five generations of gradual evolution, the latest CR-V uses an updated version of the previous model's all-new architecture – a very solid foundation to build an SUV upon.

Pairing that with Honda's latest hybrid electrification tech is the automotive equivalent of putting together peaches and cream. Even to a vegan.

From the first push of the starter button, the driving experience is seamless, elevating the e:HEV to the premium realm.

As it's in EV mode for much of the time at lower speeds, the SUV powers forward quickly and effortlessly, gliding along with a determined hum.

When the petrol engine eventually engages, it does so smoothly and quietly, yet the electric motor's influence and effects are far from done; the driver can sense all that torque (335Nm, remember) just from the immediacy of the throttle response.

Result? The CR-V's mid-range thrust makes it a deceptively rapid vehicle, accelerating instantly and surging strongly in almost no time at all. Keep an eye on that speedo, too, because the powertrain delivery is silken.

Furthermore, and going against type, the brakes thankfully avoid the wooden feel of many rival hybrids, and instead pull up immediately and with normal and natural pedal pressure.

Additionally, the paddle shifters provide variable off-throttle braking, though not quite down to a full stop.

Honda's chassis engineers have earned their keep when it comes to the CR-V's dynamics, too.

Light and easy around town for painless parking, the steering weights up nicely at higher speeds, allowing the driver to get into a linear rhythm with the machine, and without it feeling nervous or top-heavy when corners get tight – a rarity in an electrified SUV of this size.

And while it lacks the intimate connection of sportier SUVs like the Mazda CX-5 (given the RS badges), most people will appreciate the Honda's calm and controlled handling and road holding.

For the record, suspension in the CR-V consists of MacPherson-style struts up front and a multi-link rear end. However, a bit more suppleness would transform the e:HEV.

Wearing 235/55 R19 tyres, its ride around town is fine over larger bumps, absorbing them smoothly and without fuss, while overall tyre/road noise intrusion is pretty good, too.

Yet smaller-frequency surface irregularities, like joins and rail tracks, are not so easily dealt with, resulting in some sudden harshness.

Driven over exactly the same roads as the ZR-V e:HEV equivalent, it's clear there isn't quite the polish or sophistication that makes the smaller Honda SUV a highly-convincing dynamic and refined alternative to luxury German alternatives.

Other than the occasionally fidgety suspension, the CR-V hybrid makes for a dynamically impressive family SUV.

Honda has yet to publish ANCAP crash-test results for the latest CR-V. For what it's worth, the previous two generation models achieved a maximum five-star assessment.

Today's CR-V comes with 11 airbags, including two dual front, dual side, dual front knee, front-centre, dual rear side and full-length curtains.

On the active-safety front, there is AEB with pedestrian and cyclist detection, low-speed braking control front and rear, road departure mitigation (RDM), forward-collision warning, blind-spot alert, lane-departure warning/keep, rear cross-traffic alert, adaptive cruise control (with full stop-go), low-speed follow and traffic-jam assist, traffic-sign recognition, driver-fatigue warning, adaptive driving beam and auto high beams.

You'll also find front/rear parking sensors, anti-lock braking with brake assist, 'Electronic Brake-force Distribution', hill-start assist, stability control, traction control, an intelligent speed limiter, trailer stability assist, tyre-pressure monitors and something called 'Straight Driving Steering Assist'.

An ISOFIX child-seat latch is fitted to each outboard rear seat position, while a trio of anchorage points for straps are included either on or behind, as well.

Honda says its AEB system is operational from 5.0km/h, the RDM from 30km/h, the lane support systems from 72km/h and the traffic-jam assist tech works between 0-72km/h. Top speed is 186km/h.

Seven years of warranty is a good start, and has Mahindra joining an increasingly large club of challenger brands which are following in the footsteps of Kia by offering above-average coverage in this department. Mahindra’s version only covers the first 150,000km of distance, but there’s seven-years of roadside assist, too.

At the time of writing, Mahindra was yet to land on service pricing. This could be the last piece of the puzzle for some buyers. The XUV700 needs to be serviced once every 12 months or 10,000km.

Honda offers a five-year/unlimited kilometre warranty that also includes roadside assistance.

At the time of publication until the end of March, there is a special offer that extends those to seven years.

Additionally, there is a six-year rust perforation warranty and an eight-year hybrid-battery module warranty.

There's also five years' free subscription to 'Honda Connect', bringing remote-control operation for climate control, lights and locking/unlocking, as well as trip log data, location status, geo-fencing and emergency callout access.

The CR-V's servicing intervals are every 12 months or 10,000km or when the engine oil monitor light illuminates, with capped price servicing pegged at an annual flat fee of $199 for the first five years.

That's under $1000 over that period of time. Nothing extraordinary here unless you remember the old days of how expensive it was to service new Hondas.

Note, however, that the e:HEV's lack of a spare wheel does bring additional costs – namely in the cost of replacing the expensive tyre-repair kit, as well as the substantial time, inconvenience and flow-on issues of a more-severe puncture that can render the CR-V undriveable if the tyre-repair kit is unable to plug the hole.

Honda is not alone in not offering a spare wheel in its hybrid SUV range, but there are real consequences in being stranded with an unfixable flat tyre that needs to be factored in. Family holidays can be made or ruined in such circumstances.