Volkswagen Tiguan vs Mahindra XUV700

What's the difference?

If there is a catch to the discounted price of the Tiguan R Grid Edition it's that you'll have to live without leather seats and a head-up display, which is fine in my books as long as the dynamics and engine are the same, which they are in this special SUV.

What isn't ideal is the Tiguan R Grid Edition not having blind-spot warning or rear cross-traffic alert, which are standard on the regular Tiguan R.

Volkswagen had to make a hard decision there, and to be fair, the lack of availability of semiconductors is the reason behind this, not cost reduction.

If you are able to accept this, you'll have a relatively affordable SUV that can do both beast mode and family mode with impressive skill.

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

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.

Some carmakers would go overboard in coming up with the styling of a 300+ horsepower mid-sized SUV, but not Volkswagen which is the master of understated, yet cool, design.

Any model wearing that R badge is special. On first glance the Tiguan R Grid Edition looks ready for a boardroom meeting but look closer and you'll see it's ready for battle.

Check out the Tiguan R Grid Edition's quad exhaust, its aggro R front bumper, the 21-inch 'Estoril' alloy wheels and the blacked-out grille.

The cabin is a premium looking place but like the insides of all Volkswagens it seems very business class, functional but not too fancy.

Thankfully the sports seats, while not Nappa leather as in the Tiguan R, stop it from all being a bit serious and grown up in here.

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.

The Tiguan R Grid Edition is a five-seater, mid-sized SUV, it's not a seven-seater like the Tiguan AllSpace and there isn't an R version of that larger Tiguan. There is an R-Line Allspace, however.

Still, the Tiguan R Grid Edition is spacious with excellent headroom and even at 191cm tall I could sit comfortably in the second row behind my driving position.

This sounds really nerdy, but I love the way Volkswagen does door pockets - they're gigantic and I tend to throw my wallet, house keys and the mobile clutter from the rest of my life in there.

There are four cupholders on board, too (two up front and two in the second row).

The cargo capacity of the boot is big for the class at 616 litres. There are two levels to the boot floor, along with cargo hooks.

You'd expect a $64K SUV to have a power tailgate but the Grid Edition doesn't have one and this is down to the global semiconductor shortage.

The manual tailgate is fine, just remember to close it yourself - embarrassingly, on the launch I pressed the 'blank' panel where the button should be only to almost drive off with it open.

Also missing is wireless phone charging, but there are three USB ports (two up front and one in the rear).

Dark tinted side windows in the rear and climate control with directional air vents in the second row are big ticks on my own checklist for a good family car - the kids will be protected from the Aussie sun and travelling in a comfortable temperature. Never had these luxuries in my day...

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.

In that nose is 2.0-litre turbo-petrol four-cylinder engine making 235kW and 400Nm, and it's driving all four wheels through a seven-speed dual-clutch automatic.

A superb engine, a great transmission with lighting quick changes and brilliant traction from the all-wheel drive system.

And exactly the same as found in a regular Tiguan R. Volkswagen hasn't taken anything out here.

That makes the Tiguan R Grid Edition a 235kW family SUV with a 0-100km/h time of 5.1 seconds. That is quick.

How much fuel does it use? Less than you probably think.

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.

You'll need to feed your Tiguan R Grid Edition premium unleaded petrol and Volkswagen says that over a combination of open and urban roads you'll use 8.8L/100km.

That's not overly high considering this SUV isn't small, but how much fuel you use will really depend on how you drive it and no there isn't a hybrid or electric version.

A 58-litre tank means the official consumption figure translates to a driving range of around 660km.

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.

If it's possible to drive in every condition over the space of eight hours then you can do it in Victoria. From grid-locked Melbourne CBD traffic in the hot morning sun to an awesome mountain run with the temperature dropping and mist rolling in.

So, in the space of that day the Tiguan R Grid Edition showed what it could do in pretty much every situation you'll be in.

Traffic is traffic, no matter what car you're sitting in but the Tiguan R Grid Edition is a comfortable place to be with those supportive sports seats, good visibility and light steering.

So, a normal Tiguan in everyday driving, right down to the comfortable and composed ride, even if this Grid Edition rolls on impossibly thin 255/35 R21 Hankook Ventus Evo S1 tyres.

But as we left the suburbs behind and pushed into the countryside towards Lake Mountain in Victoria's Alpine region, the 235kW turbo-petrol engine cleared its throat and made itself known.

Overtaking proved to be quick and simple on the highway, and hills were squashed easily by the grunt of that engine.

There's a little blue 'R' button on the steering wheel which puts the Tiguan R Grid Edition into 'Race' mode - more like Beast mode. The dampers firm up for flatter handling and the exhaust note changes to a deep rumble.

The Tiguan R Grid Edition isn't just powerful, it turns into corners beautifully, the transmission downshifting like a pro, the grip from the tyres impressive and the traction from all-wheel drive reassuring.

That same day I drove the T-Roc R Grid Edition as well, the little brother of the Tiguan R Grid Edition. I found the mini-monster T-Roc to be more fun and agile, but it is smaller and lighter with only a fraction less grunt.

Still there are not many mid-sized family SUVs that could outperform the Tiguan R Grid Edition at this price.

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.

The Tiguan Grid Edition is covered by Volkswagen's five-year, unlimited kilometre warranty.

A five-year servicing plan costs $3200 (annual average $640) and you'll need to get the car serviced every 12 months or 15,000km.

Expensive servicing and no standard capped prices lowers the score here.

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.