I have owned an XUV500 AWD since April 2013 and it is now close to the 130,000 kilometre service interval. The faults so far were disc brake pads grinding from new which were replaced at the first service. The second was gradual failure of the front door locking and unlocking mechanism which was rectified under warranty at the 110,000 Kilometre service. And at 120,000 Kms front shock absorbers were recommended for replacement and the rears were also changed too because of the continuing planned long distance travelling.
This excellent SUV has been driven in six States and has mostly towed a caravan, a large fibreglass boat including interstate trips and a box trailer. The diesel fuel average economy has been 6L/100Klm on highways and 9-10L/100Klm towing the heaviest boat trailer weighing 1,800 Kg fully laden and travelling at GPS speed averaging 85 KMH on highway.
It is very comfortable for long distance driving and for passengers. The build quality is excellent.
One mechanical change I would recommend is a lower first gear to make steeper hill starts with heavier trailers easier. The 6-speed gearbox is smooth and easy to use. The torque and power of the diesel engine is satisfactory for towing and the XUV500 is rated to 2,500 Kg with a maximum 160 Kg tow ball loading. Power and economy of operation is very good.
I do not use the third row seats and believe these should be optional which would make the cargo area floor flatter. But this is not a problem, just an observation.
I have used the AWD lock and hill descent off road on farms and climbing up from a river flat to higher ground on a very rough track was achieved with no drama in wet conditions.
On road dynamics/handling is very good and superior to my '99 build Mitsubishi Pajero which handles reasonably well at highway speeds.
The AWD Mahindra XUV500 is excellent value for money and although dealerships are few obtaining service parts is not difficult. I do carry basic spares such as oil filters when travelling into more remote areas.
I will definitely buy another XUV500.