Peugeot 2008 vs Mahindra XUV700

What's the difference?

The 2008's score is slightly hurt by the price and the lack of advanced safety features (mostly reverse cross-traffic alert) but is boosted by the fantastic looks, great dynamics and avant-garde interior. While it certainly isn't the cheapest compact SUV, it certainly is one of the most stylish and, in some ways, innovative. 

Peugeot has a mountain to climb in Australia, a hangover from more than a decade of indifferent or oddball cars. The 2008 is a key plank of its premium strategy and that will become more important when it throws the full EV e-2008 at us later this year, or early next. This 2008 is the car to grab those younger buyers, I just wonder if they're keen enough to stump up the cash.

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 2008 is a cracking looking machine, with  a lot of what looks like Audi Q2 in profile (and detailing). It fooled a few passers-by, including the regular, "What have you got this week?" crew of neighbours. It's a brilliant design, sporting the 508's big light-up fangs and the cat's claw segmented taillights. Chunky but not self-conscious, it's great to look at.

Peugeot cabins are brilliant these days, with clever, interesting designs that I think are really challenging the way other carmakers think about what to put in front of the people in the front seat. The i-Cockpit works well in the SUVs (m'colleague Richard Berry will likely disagree), but the excessively cool 3D dashboard - with a screen that looks like it's floating in front of you like a hologram - really helps push the idea that the price being asked is actually quite reasonable. Lovely materials throughout, cool detailing, lots of thought and even usable cupholders. It's mad in all the right ways.

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.

Starting with the bad stuff, what is it with carmakers - and fellow French carmaker Renault was front and centre in my head here - not putting a rear armrest and cupholders in SUVs? These are cars that can fit families, so neglecting the rear  passengers seems weird and sloppy. You can kind of forgive a $25,000 Kona Go (RIP), but not a $35,000 premium product. A small but irritating detail.

Up front, you do get useful cupholders, a small centre console bin and glove box and the doors will hold bottles. There's a dedicated spot for your phone, too, which is nice.

The boot is a gigantic 434 litres, beating pretty much every other car in the space that's not from France, and with the 60/40 split-fold out of the way, you have 1467 litres at your disposal. There's also a false floor on the boot that you can either remove or use to separate valuables or muddy/stinky/sandy outdoorsy stuff.

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.

This car has its work cut out for it because the precedent for Mahindra SUVs in Australia isn’t great.

Back in 2018, this car’s predecessor, the XUV500 arrived to lacklustre reviews despite its similar market positioning. Back then, low-cost alone wasn’t enough to crack Australia’s heated mid-size SUV market, but now Mahindra is promising its all-new generation product is different and ready for a more global audience.

The pricing for the XUV700 is immediately impressive. Starting at $36,990 drive-away for the entry-point AX7, this car is now officially Australia’s cheapest seven-seat SUV, and this hasn’t come at the expense of standard equipment.

The price includes 18-inch alloy wheels, LED headlights, dual 10.25-inch screens for the multimedia and digital instruments, wired Apple CarPlay and Android Auto connectivity, synthetic leather interior trim, a six-way power adjustable driver’s seat, dual-zone climate control, push-start ignition, and even a panoramic sunroof.

Stepping up to the top-spec AX7L which commands a $3000 premium ($39,990 drive-away) adds some missing safety equipment like a blind spot view monitor, a more advanced adaptive cruise system (able to come to a full stop and re-start), as well as a 360-degree parking camera.

This version also scores electronically retracting door handles, a premium audio system, and a wireless phone charger.

Bizarrely, it also adds a seventh airbag for the driver’s knee and a telescopically adjustable steering column, and swaps out the manual lever handbrake for a digital switch.

These are things which would normally be expected as standard on many of its rivals, and it’s a shame to see safety items, particularly airbags, behind a paywall.

Regardless, the fact this car manages to significantly undercut established rivals like the entry-level seven-seat Nissan X-Trail, Mitsubishi Outlander, Honda CR-V and even the cut-price LDV D90, while providing similar equipment levels is pretty impressive.

There are no options for now bar several accessories. All five colour options are free, and Mahindra says there’s more to come in terms of spec levels and interior options if all goes well.

The Puretech 1.2-litre three-cylinder is a cracker of an engine and I won't hear a bad word against it. Partly because nobody ever says bad things about it. In the Allure, it's in 130 specification, which means 96kW and 230Nm of torque. The power figure is in line with almost everything in the class and the torque figure is good for the segment, especially considering the 1267kg kerb weight.

Driving the front wheels via a six-speed Aisin-supplied automatic, the Allure will complete the sprint to 100km/h in under 10 seconds. It feels quick enough, but that might be the torque curve filling in after a tardy start. If you're willing to drop another nine grand, you can have 114kW, eight gears and a slightly quicker 0-100km/h time.

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.

Peugeot says the Allure completed its government-mandated testing with a 6.5L/100km combined cycle figure while huffing out 148g/km of carbon dioxide.

I managed 6.8L/100km driving as I normally would around the suburbs and with some fast roads in the mix. That's an impressively close number to the official figures and lines up well with the more accurate WLTP findings.

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.

My first experience with the 2008 was in tipping rain on the same day I drove the 5008, so it was nice for the sun to shine during the time I had it. Dry roads and Peugeots are way more fun, although it was uncommonly wet on my first attempt.

What struck me about the 2008 is how sure-footed it is, even on the cheap-ish tyres fitted. It has that lovely, pointy Peugeot feel of the other cars in the range, which is partly to do with the hilariously small steering wheel but mostly because they're just so well set up.

The 2008 handles all the nastiness of suburban streets, even with torsion beams at the rear, something European cars somehow make work with almost magical effect. It's also very quiet inside, whether it's wind, tyre or engine noise, none of which make much impact on the occupants.

The transmission and engine work extremely well together, so well I don't think I resorted to the paddles even once to hurry things along. Quite a few cars in this class either have a whining continuously variable transmission or a sometimes-clunky twin-clutch auto. The smoothness of the Aisin six-speeder is excellent and it seems to know where the turbo lag is, and shifts accordingly. It also picks up when you want it to, wringing every last drop of torque out of the engine when you need it most. The car does slow noticeably when loaded up, but you'll get that in every other car in the class, too.

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.

At least on paper, the XUV700 does well. Standard active equipment includes auto emergency braking (a first for the brand, which we were given the opportunity to test on a dummy - it definitely works), lane keep assist with lane departure warning, adaptive cruise control, and traffic sign recognition.

Only the top-spec AX7L gets stop and go function for the adaptive cruise, a 360-degree parking camera suite, and a laggy low-framerate blind spot camera in place of an actual blind spot sensor system, the latter being the standard throughout the industry.

The side curtains extend all the way to the third row, although, oddly, the AX7L is the only one to get a seventh airbag (for the driver’s knee).

The verdict is out on this car’s actual crash performance until it secures an ANCAP rating, which it is yet to do.

Peugeot's five-year warranty, five-year capped-price servicing and five years of roadside assist is a solid, if unspectacular offering. Which is a bit rude, because three years ago we'd have been bowing at Peugeot's feet for such generosity. It's a thankless business.

Servicing comes around every 12 months/15,000km, which is pretty good going for a turbo engine in this class (except, of course, Renaults, which go for 30,000km) and you'll pay, on average, $447 per service, which isn't awful, but is not cheap either.

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.