Under cost-of-living pressures, Australian families are looking for new cars offering safety, space and features – without the premium price tag. Less than $40,000 drive-away, here’s why the Mahindra XUV700, with seven seats and a full suite of safety as standard, is the SUV they’ve been looking for.
Sponsored by Mahindra
Despite the easing of interest rates in 2025, living costs keep rising for Australians. Data from the Australian Bureau of Statistics showed that for the March 2025 quarter, living costs increased between 0.6 and 1.6 per cent with health, housing, food, and non-alcoholic beverages the main drivers.
So when it comes to the cars they drive, budget-savvy mums and dads are hunting for value-packed SUVs in Australia, and they’re finding it with the $39,990 (drive-away) Mahindra XUV700 medium SUV. With a long list of standard features matching cars costing thousands of dollars more, the Mahindra XUV700 is also one of Australia’s most affordable seven-seaters.
Something of a quiet achiever, Mahindra has spent the last 80 years earning a reputation for ruggedness and reliability as the world’s top-selling tractor manufacturer. That makes its successful expansion into refined family SUVs, like the XUV700, all the more remarkable.
In this article, we answer the key questions about why more adventure-seeking Aussie families are switching to the Mahindra XUV700.
How much does the Mahindra XUV700 cost? What does it come with?
Two XUV700 variants are available – the $39,990 AX7, and the $42,990 AX7L – both prices drive-away, and both offer outstanding value for money.
In other medium SUVs, if you want the same features as the Mahindra XUV700, you often have to pay more. In some cases, a lot more.
Let’s break down the XUV700’s standard features. A true family bang-for-buck hero, the entry-level XUV700 AX7 comes with seven seats, a full Advanced Driver Assistance System (ADAS) with adaptive cruise control and autonomous emergency braking, Apple CarPlay and Android Auto, a powerful turbocharged engine, and dual 10.25-inch digital displays.
There’s also an electrically opening panoramic sunroof, 18-inch diamond-cut alloy wheels, electric driver’s seat, dual-zone climate control – and a lot more. All standard.
For just $3000 more, the top-spec AX7L adds ventilated front seats (a game-changer in hot climates), memory driver’s seat, electric parking brake, wireless Apple CarPlay and Android Auto, blind-spot camera view and a 12-speaker Sony stereo. It also adds stop-and-go for the adaptive cruise control – again, important for commutes involving heavy traffic.
All Mahindra vehicles come with a seven-year, 150,000km warranty and seven years of roadside assistance.
Does the Mahindra XUV700 come with ADAS (an Advanced Driver Assistance System)?
Yes, it does. For under $40,000, the Mahindra XUV700 comes standard with a full Advanced Driver Assistance System (ADAS) offering semi-autonomous driving capability, including adaptive cruise control, active lane-keeping and even stop-and-go capability in the top-spec AX7L.
Mahindra calls its ADAS suite “Smart Pilot Assist”. It can reduce fatigue on long journeys – and is a technology that feels like magic for those who’ve never experienced it before.
As an affordable SUV with ADAS, the Mahindra XUV700 is designed and engineered with the latest in automotive vehicle safety. Drive with peace of mind knowing you and your family are protected by a long list of standard safety features – from autonomous emergency braking, forward collision warning, traffic sign recognition to high beam assist.
Safety is a key importance for the XUV700, with the model rated to a five-star standard with Euro NCAP (ANCAP’s European counterpart). It comes fitted with six airbags as standard. Safety is elevated further with the AX7L which adds a knee airbag for front occupants, stop-and-go function for the adaptive cruise control, and a 360-degree surround-view parking camera.
Does the Mahindra XUV700 come with seven seats?
All XUV700 models come standard with seven seats. And once you’ve experienced the flexibility of a seven-seater in your daily life, especially if you have a family, there’s no going back.
As well as a huge boot, if it’s space you need, it’s space you get in the seven-seat XUV700. At 4695mm long, a generous 1890mm wide, 1755mm tall, and riding on a 2750mm wheelbase, space is plentiful in the XUV700’s cabin.
In the back seat, there is plenty of room for two child seats, with dual sets of ISOFIX mounting points and three top-tether anchorages. When in five-seater mode, the third row neatly folds flat into the boot for a large luggage zone that would easily accommodate a pram and plenty of groceries.
If you’ve got something larger to move, fold down the second and third rows – again, something easily completed in seconds by one person – and the XUV700 reveals an enormous, flat-floored cargo compartment. The second row also offers 60/40 split-fold versatility, while the third row is 50/50, giving you a six-seater with plenty of space leftover for luggage, if need be.
Does the Mahindra XUV700 have air vents in the third row?
The XUV700 has third-row air vents, and third-row occupants can even adjust the fan speed.
Here are just a few of Mahindra’s thoughtful touches.
There’s the front centre console with an air-conditioning vent to keep drinks cool on a hot day. The front door panel bins have dedicated storage slots for umbrellas. The centre infotainment screen can display your favourite family photos.
The Mahindra’s standard electric driver’s seat offers comfort entry and exit, automatically sliding back as you turn the car off, to make getting out a little easier. The reversing sensors display the distance to an obstacle in centimetres, making for precise manoeuvring in a tight garage.
Does the Mahindra XUV700 have Autonomous Emergency Braking (AEB)?
All XUV700 models come standard with autonomous emergency braking (AEB). This helps make the Mahindra a safe, easy and comfortable SUV to drive every day.
Light steering and great visibility make the XUV700 effortless to park, as does a standard reversing camera.
On the open road, the XUV700’s active lane-keeping works subtly and unobtrusively, helping you confidently keep the car in its lane. With its independent rear suspension and Frequency Selective Damping, the XUV700 rides comfortably over all Australian roads.
In his Mahindra XUV700 review, Drive’s own Kez Casey described the XUV700 as feeling “relaxed from behind the wheel” and “very easy to gel with”.
Where is my local Mahindra dealer?
Having been in Australia since 2007, Mahindra is constantly adding new dealers to its 70-strong dealer network across city and regional areas, giving Australians confidence that this much-loved Indian brand is here for the long haul.
And with up to $3000 cashback for XUV700 buyers in the run to the End of Financial Year (EOFY), there’s never been a better time to visit your Mahindra dealer for a test drive. But hurry, as this offer only applies to vehicles delivered before June 30, 2025. And only to the XUV700 AX7L. Contact your local Mahindra dealer and explore local availability now.
The post Why value-conscious families are switching to the Mahindra XUV700 appeared first on Drive.