2025 Mahindra XUV700 AX7L vs Mitsubishi Outlander LS 2WD: Spec battle

The boundaries between compact soft-roaders or crossovers and full-size SUVs are becoming more blurry every day.

Mid-size SUVs – Australia’s most popular new vehicle type – were once exclusively suited to nuclear families, but there are now a raft of options that offer even more flexibility and seating capacity, like the Mitsubishi Outlander and Mahindra XUV700 that we’re pitting against each other here.

So if you need room for seven on the inside, but don’t have the car parking space for a larger SUV, then these two deliver where it counts.

But which delivers the most? Let’s find out…

How much?

The Mahindra XUV700 AX7L is the flagship variant in the two-variant lineup and has a regular drive-away price of $42,990.

But the Indian car maker is currently running an end-of-financial-year incentive that returns it to 2024 pricing and slashes $3000 off the sticker, which makes it remarkably good value.

In comparison, the Mitsubishi Outlander LS is the second step on a five-grade ladder but, more importantly, the most affordable one that can be had with the seven-seat option.

Unlike the front-drive-only Mahindra , buyers have the choice of either a front-wheel drive or all-wheel drive transmission, with a starting price of $41,240 plus on-roads or $43,740 plus on-roads respectively.

Mitsubishi also offers the Outlander with a plug-in hybrid powertrain, which Mahindra doesn’t, but the most affordable model commands a $20k premium over the entry-level 2WD ES, starting at $57,290 plus on-roads.

What do you get?

Both of these mid-size SUVs deliver a generous list of standard equipment that includes 18-inch alloy wheels, dual-zone climate control with rear air vents, push-button start and infotainment displays with Bluetooth connectivity and smartphone mirroring.

But the Mahindra goes the extra mile in terms of luxuries and conveniences. Where the Outlander has cloth trim, a conventional instrument cluster, a six-speaker audio system and an 8.0-inch colour touchscreen display with wired connections for Apple CarPlay and Android Auto, the flagship XUV700 has synthetic leather trim with ventilated front seats and electric adjustment for the driver, plus twin 10.25-inch displays with wireless smartphone connections, a wireless phone charger and a 3D sound system with 12 speakers, as well a panoramic glass sunroof.

Are they safe?

The Mitsubishi Outlander has a five-star ANCAP safety rating from 2021 with among the highest scores in its class for individual criteria including Adult Occupant Protection (83%), Child Occupant Protection (92%), Vulnerable Road Users (81%) and Safety Assist (83%).

The Mahindra XUV700 has yet to be assessed by the independent crash test body despite being on sale in Australia for more than two years.

However, both come equipped with an extensive array of essential safety features and advanced driver assist systems, including:

What are they like inside?

The Mahindra XUV700 and Mitsubishi Outlander are almost identical in terms of exterior dimensions, but the Mahindra rides on a slightly longer wheelbase which provides a bit more packaging flexibility for the interior.

The dashboard layout is relatively conservative in its overall design but looks more modern than the Outlander thanks to its twin digital displays and two-tone colour palette.

Its synthetic leather trim brings a sense of luxury and the large panoramic sunroof bathes the cabin in light to give it a more airy feeling, both of which make the XUV700 a pleasant place to sit in.

The front seats sit a little too high and restrict headroom for taller passengers, but the middle row is roomy enough for three with a commanding view ahead.

Access to the third row is easy via a one-touch lever that tumbles the 60/40-split middle row forward. But, while there are cupholders and air vents back there, they are really only suited to small kids or occasional use.

The Outlander is no different in that department, although its third row is even a little tighter, particularly in terms of headroom, and doesn’t have separate air vents. You also have to install the head restraint each time you use them.

With all three rows in use, neither the Mahindra or Mitsubishi have enough cargo capacity to cater for seven, but the XUV700’s boot is significantly larger as a five-seater.

The front seats in the Outlander do, however, have more adjustment and sit lower for a better driving position, and the middle row is big enough for three.

The Outlander’s darker trim on the lower half does make it feel smaller, and the overall design is pleasant and comprises good quality materials that feel robust enough to handle the rough and tumble of family life.

What’s under the bonnet?

Here’s where these two cars deviate the most.

Even though both are front-wheel drive and come with automatic transmissions as standard, the Mahindra has a 2.0-litre turbocharged four-cylinder petrol engine combined with a conventional six-speed auto, whereas the Mitsubishi has a 2.5-litre naturally aspirated petrol four-cylinder with a continuously variable automatic transmission (CVT).

Despite its smaller capacity, the XUV700 delivers healthy outputs of 149kW and 380Nm compared to the Outlander’s 135kW and 244Nm.

But it does require premium unleaded, and it does have to push an additional 200kg of mass, which gives the Outlander an slight advantage when it comes to fuel consumption (8.3L/100km versus 7.7L/100km).

Cost of ownership

Mitsubishi raised the bar for aftersales ownership provisions when it became the first automotive brand to offer a 10-year factory warranty.

However, it is conditional on the vehicle being maintained on schedule through its authorised dealer network and it’s limited to the first 200,000km of running.

Its capped price servicing scheme runs for the entire duration of the warranty period with an average annual cost of $434.

However, roadside assistance is only offered for the first four years.

Mahindra provides a seven-year, 150,000km warranty for the XUV700, with roadside assistance for the same length of time. But capped price servicing is only available for the first four years and costs fractionally more, at an average of service price of $445.50.

Interestingly, Mahindra recommends the XUV700 is serviced at 10,000km during the first year of ownership, which then extends to 15,000km each year after that, the same intervals as the Outlander.

CarExpert’s Pick

Both the Mahindra XUV700 and Mitsubishi Outlander deliver in spades if you’re in the market for a flexible, budget-friendly mid-size SUV.

But if you have a larger family and need seven seats more than just every now and then, we’d recommend moving up a size to dedicated three-row large SUV.

As for these two entry-level seven-seaters, the Outlander is the safe choice, and the 10-year warranty provides unparalleled long-term peace of mind.

But the Mahindra simply offers unparalleled value for money with more features – and a little more luxury – for a lot less.

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