Volkswagen Golf vs Mahindra XUV700

What's the difference?

The Volkswagen Golf GTI is still a standard-setter when it comes to the “do it all” style of sporty hatch.

I wish the media screen was simpler, and that it wasn’t so loud inside on rougher road surfaces that are so common around Australia, and I wish it was cheaper, too. 

But if you can justify the cost, and you want a five-door hatch with plenty of power and presence, then the Golf GTI could well be the go. But I’d also personally be checking out the Cupra Leon, which I think looks better and has a bit more individual appeal.

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.

You can tell it’s a GTI at a glance, and that means it’s off to a good start. There’s the telltale red grille strip, sitting proud above a very aggressive lower bumper with chequered-flag style daytime running lights. 

In profile there’s a GTI badge on the front fender, and I think the 19s on this particular car sit a lot nicer than the ‘Richmond’ 18-inch rims on the standard car. There are red calipers, too, and tinted rear glass.

At the rear there is a minimalist approach to the badging - just the three important letters ‘GTI’ below the VW emblem, which doubles as the boot opening handle. The lower bumper features a pair of round exhaust tips, which poke out a bit more than you might expect.

The inside has the iconic - but not identical between generations - tartan seat trim, and I love it. Got a few really nice compliments on the design, which is called ‘Scale Paper’, in this gen and spec.

Otherwise, it’s a pared back affair, and you could be sitting in any other high-grade Golf.

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.

You’ll fit more in the Golf hatch than you might expect. I took myself, my daughter and both my parents for a few-hour drive in it, and there were no complaints about comfort or space.

The 374-litre (VDA) boot space was large enough to fit the pram, a few shopping bags and a baby backpack, though for families with a baby or toddler, longer trips with more baggage might prove a squeeze. If you need more space and don’t have a child-seat in the back, you’ll get 1230L (VDA) with the back seat folded down. And there’s a space-saver spare under the floor.

The back seat is easily roomy enough for smaller adults and kids, and I could even slot in behind my own driving position (I’m 182cm/6’0” tall) with enough room. Three across will be a squishy, but it is possible.

There are dual ISOFIX and three top-tether points for kid seats, plus there’s a fold-down armrest with cup holders, big door pockets for a bottle or loose items, and a few pockets on the front seat-backs, too. There are USB-C ports (x2), and directional air-vents.

Up front you’ll find similar storage - cup holders between the seats, a pair of big cubbies in the doors, and additional holsters for a phone (with wireless charging) and 2x USB-C ports, a centre console bin, and reasonable glovebox.

The usability of the media system is not terrific. There are menus upon menus, and nothing as intuitive as it could be because so much of it is touchscreen-based. There are only a few hard buttons below, and then you still need to use the screen to get where you need.

I also think the much-criticised lack of knobs and buttons for volume and temperature control is an issue. There are controls below the screen, but they aren’t illuminated, and they aren’t always the most receptive. 

I also didn’t love the haptic touch buttons on the steering wheel. I kept bumping buttons inadvertently when driving enthusiastically.  

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.

You know the VW Golf GTI formula. Punchy engine, front-wheel drive.

In this iteration, the engine is a 2.0-litre four-cylinder turbo-petrol with 180kW of power (from 5000-6200rpm) and 370Nm of torque (from 1600-4300rpm).

This generation doesn’t come with the option of a six-speed manual transmission like GTI models before it - instead, you get a seven-speed dual-clutch automatic transmission as standard.

The 0-100km/h claim is 6.4 seconds. But in some situations it feels faster than that.

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 official combined cycle fuel consumption figure is 7.0 litres per 100 kilometres. That’s what you should be able to achieve across a mix of driving.

During my time in the Golf GTI, I did a few hundred kilometres of mixed driving, and saw a real-world return of 8.1L/100km. Respectable, I think. Undoubtedly it would be higher if all you do is drive hard - but this test was about how usable the car is in normal life.

It has a 50-litre fuel tank that needs to be filled with 95RON premium unleaded at a minimum.

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.

This was an urban test first and foremost, and the Golf GTI still is one of the most liveable sporty hatchbacks on the market.

There are things you will need to contend with - the amount of coarse-chip road road that intrudes into the cabin is downright nasty at times, and even in the most comfortable drive mode it’s quite firm over Sydney’s pockmarked city roads - but otherwise, this thing is great.

The steering has heaps of weight to it, and is super direct. The heftiness of it might take some getting used to, especially when negotiating tight parking spaces, but there’s always the auto-parking function if you’re nervous. 

Now, the adaptive chassis control dampers will be stiffer or softer depending on the drive mode you choose. There are Eco, Comfort, Sport and the configurable Individual setting, and when my family was on board I had the car in Comfort mode. Again, no complaints about ride comfort.

In Sport mode, it is sharper and lumpier, but never lacking in control or refinement. Yes, you do feel sharp edges, and it might be too edgy for full-time use, but it really does help the car feel more confident and planted.

The engine is terrific. It has more than enough grunt to make easy work of daily duties, and you needn’t fear about whether you’ll have enough squirt to make it for overtaking moves. It has an abundance of torque and the linear way in which it builds power from low in the rev range is superb.

I also had no complaints about the dual-clutch auto transmission. The action of it can take some getting used to at lower speeds, where it can feel like it’s slurring a bit, but it really is a super gearbox, with snappy shifts at speed and smooth changes when you want them.

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.

Buying a VW? You’ll score a five-year/unlimited kilometre warranty. That’s good, but not as good as Skoda, MG, GWM Haval or Kia. But none of those brands have a real hot-hatch like this.

Servicing is every 12 months/15,000km. There’s a capped-price plan or “Care Plan” prepay packs for three years/45,000km ($1600) or five years/75,000km ($2800). Choose the latter and you’re saving heaps over pay-as-you-go ($786, to be precise).

You get a year of roadside assistance included, but that renews each time you service your car with VW.

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.