The light SUV segment is one of the most competitive in the Australian market.
It was once the domain of the Japanese and Korean manufacturers, but in recent years the Chinese have brought better and more advanced compact SUVs to market for under $30,000 drive-away.
Within a short few months, Australia’s affordable, light-size, city-friendly SUV sector will gain another new member, this time from India in the form of the all-new Mahindra XUV 3XO. The name might be a mouthful, but the offering is serious, and it takes on the likes of the Chery Tiggo 4, Hyundai Venue, Kia Stonic, Mazda CX-3, Toyota Yaris Cross, Nissan Juke and Volkswagen T-Cross.
In this segment Australian buyers are extremely price- and feature-conscious, which has seen the likes of the Tiggo 4 excel, while buyers preferring traditional brands at a more premium price have the option of household names like the Yaris Cross and Juke.
Needless to say, Mahindra enters a very competitive market with its new XUV 3X0, but if it can get the price and the positioning right, its fourth model line in Australia brings the biggest opportunity yet for the Indian brand to increase its local sales volume.
Ahead of its Australia launch in the coming weeks, and to determine if the Mahindra XUV 3XO is any good, we visited the company’s test track located about two hours from Chennai in India.
First things first, we were pleasantly surprised by the extent and scale of the brand’s research and development centre. Mahindra has what can only be described as a world-class facility at its disposal to not only develop cars but to also thoroughly test them.
The Mahindra XUV 3XO is already on sale in the Indian domestic market, where it has been met with extreme demand, but vehicles headed to Australia are still undergoing final preparations including tuning.
Unlike Chinese manufacturers, which bring media to their facilities and then put limits on how we can drive the vehicles in terms of speed and testing, the Indians basically handed us the keys at a high-speed test track and said ‘have fun’.
Hence we tested numerous XUV 3XO vehicles at speeds in excess of 175km/h on banked turns, and we put the cars through a series of slalom tests and performed high-speed direction changes and other extreme tests that no buyer would ever put their car through.
First impressions? If Mahindra can get the price right, XUV 3XO is going to be an extremely competitive offering in the Australian market. But let’s take a deeper look.
How much does the Mahindra XUV 3XO cost?
Pricing and final local specification for the XUV 3XO are not finalised for Australia yet. Nonetheless, we are led to believe that Mahindra’s first light SUV will very much compete with the Chery Tiggo 4 Pro in terms of price.
The new pint-size SUV will be offered in two trims, including the entry-level Mahindra XUV 3XO A5XL and the top-spec Mahindra XUV 3XO A5XL.
If the Indians want to be competitive, this will likely mean a starting price of around $26,000 for the base variant and under $30,000 for the flagship, drive-away.
Pricing and final Australian specification data should be available in the next few weeks.
What is the Mahindra XUV 3XO like on the inside?
Despite being a Chery Tiggo 4 competitor, the Mahindra XUV 3XO feels a little bit larger inside. That’s despite the vehicle’s length of 3990mm and width of 1821mm both being smaller than those of the Chery.
While we don’t yet have exact measurements, the second row of the Mahindra XUV 3XO seemed more accommodating for larger adults than the Tiggo 4 Pro, but we are eager to put these two to the test when the opportunity arises.
Boot space measures 364 litres, which is down a little from the Chery’s 380L, but you will be hard pressed to tell the difference. The main thing you may notice is the small button to open the boot (which is easy to get used to), but also the height of the lip of the boot itself.
The seats were comfortable and supportive in both the front and second rows. You can indeed fit five occupants in the car, and as long as the three in the back are not large adults it should not be a big issue. Ultimately, though, and this is no different to its direct rivals, the 3XO is better suited to four than five occupants.
The centre stack panel has access to the air-con controls with physical buttons, which is something the Chinese seem allergic to.
This makes basic changes to the temperature, fan speed, audio volume and even audio source readily accessible. Call us old-fashioned, but this is a much better and safer way to change your driving environment than having to climb through a digital menu on a screen.
We only drove the top-spec A7XL, but from a technology perspective even the base grade gets a 10.2-inch central infotainment screen as well as a 10.2-inch digital instrument cluster. We found both screens to be sharp and responsive, though the screen lamination did allow for a little bit of sun glare in Chennai.
Wireless Android Auto and Apple CarPlay are both standard across the range and, during our quick test, CarPlay seemed to work seamlessly. The top-spec variant also comes with a rapid-charging 65W USB-C charger (as well as a USB-A port) while also offering wireless charging. To be frank, the latter was a little bit useless, given how much our mobile phone moves around in the charging compartment.
All versions get a standard reversing camera, but going to the top-spec brings a 360-degree surround view. In addition, the extra few thousand for the flagship will also get you a pretty decent Harmon Kardon sound system with amplifier and sub-woofer.
This is the same high-end audio brand that has been making stereos for BMWs for the last 30 or so years, and we can assure you the cost of getting any Harmon Kardon sound system in a BMW is significantly more than what Mahindra is charging here.
There is also a giant sunroof in the top-spec model, which is a nice thing to have, but Mahindra could probably save you some money and make that an option, because while we would definitely recommend the top-shelf variant for its extra features, we’d leave the sunroof to personal choice.
Overall, we found the interior of the Mahindra XUV 3XO to be a pleasant place to be, and the quality of the fit and finishes on the doors and dashboard are on par with what the Chinese and Koreans are offering in this segment.
What’s under the bonnet?
The Mahindra XUV 3XO is powered by a 1.2-litre three-cylinder turbocharged petrol engine that produces 82kW of power and 200Nm of torque. In other markets, a higher-spec version of that engine is available with 96kW/230Nm.
The power unit is coupled to a smooth-shifting six-speed automatic transmission, and the powertrain has a combined city/highway fuel economy figure of 6.5L/100km. However, it will require 95-octane premium unleaded fuel.
How does the Mahindra XUV 3XO drive?
Our first impressions of the XUV 3XO in terms of its driving characteristics were very positive.
Mahindra gave us no limitations on what we could do with their test vehicles in India, so we put them to some extreme tests, which makes us feel very comfortable to tell you it has been engineered to easily handle anything that everyday Australians will throw at it.
It’s fast enough for you not to care what engine sits under the bonnet, while also being frugal enough to save you money on running costs amid rising fuel prices.
The transmission and engine combination work really well together and at no point did we experience any jerkiness in the gearshifts, which were extremely smooth.
The front-wheel drive nature of the 3XO is also well contained, with no noticeable torque steer or the like.
Perhaps the only thing you will notice is occasional turbo lag if you plant the right foot all the way to the floor, as the 3XO takes a good second or two to get its power down.
But again, these are edge-case scenarios and, for everyday smooth driving, the car provides more than adequate performance.
The XUV 3XO makes use of a MacPherson strut suspension system up front (with anti-roll bar) and a twist-beam setup with coil springs at the rear.
Given just how bad India’s roads are, we can assure you the 3XO’s ride is tuned to meet Australian conditions, but we look forward to driving the vehicle on local roads in the coming weeks.
What do you get?
There will be two variants of the Mahindra XUV 3XO for Australia.
2025 Mahindra XUV 3XO AX5L equipment highlights:
- Level 2 Advanced Driver Assistance Systems
- 10.2-inch infotainment touch-screen
- 10.2-inch digital instrument cluster
- Wireless Android Auto and Apple CarPlay
- 16-inch diamond-cut alloy wheels
- Dual-zone climate control
- Reversing camera
- Passive keyless entry
- Push-button start
- Leather steering wheel and gearshift trim
- Tyre pressure monitoring system
- Electric foldable ORVM
- Height-adjustable driver’s seat
- Rear armrest with cupholder
- Auto headlights and wipers
- Rear wiper and washer
- Roof rails and rear spoiler
- Rear defogger
- 6-speaker audio
- Driver’s single-touch-up power window
- Electric parking brake with Auto Hold
XUV 3XO AX7L adds:
- Skyroof
- Harmon Kardon Premium Audio with amplifier and sub-woofer
- Soft-touch leatherette on dashboard and door trims
- 17-inch diamond-cut alloys
- Auto-dimming rear-view mirror
- LED front fog lights
- Front parking sensors
- Cooled glove box with Illumination
- 65W USB-C port
- 360-degree surround-view system with Blind View Monitor
Is the Mahindra XUV 3XO safe?
Short answer is yes – you can read our full article on the safety of the 3XO here.
Mahindra says its imminent new light SUV will meet all of the crash requirements to keep its occupants safe in the real world, but it has not been tuned to ANCAP’s specific requirements.
With the XUV 3XO already having scored 29.36 out of 32 for adult occupant protection and 43 out of 49 for child occupant protection in local NCAP testing, and the fact Mahindra expects it to achieve similar results in Global NCAP testing, the Indian automaker is no doubt looking to establish the small SUV’s real-world safety credentials regardless of whether it falls short of ANCAP’s box-ticking requirements.
While CarExpert was at the brand’s R&D centre, Mahindra demonstrated a crash test of the 3XO to showcase the vehicle’s structural rigidity and real-world crashworthiness. This test was conducted to 2026 ANCAP protocols with a moving barrier.
According to the company, the 3XO is composed of 30 per cent high-strength steel, 10 per cent ultra-high-strength steel and 5.0 per cent advanced high-strength steel. The rest of the vehicle is cast in mild steel. By comparison, the current Nissan X-Trail is made up of around 35 per cent high-strength steel.
While the 3XO is not going to score five stars against ANCAP’s protocols, when it comes to saving your life in an actual crash, it comes with top-notch credentials.
How much does the Mahindra XUV 3XO cost to run?
Servicing and maintenance costs for the 3XO are still to be confirmed for the Australian market.
However, we anticipate that the XUV 3XO will be offered with the same standard seven-year, 150,000km warranty as other Mahindra vehicles.
CarExpert’s Take on the Mahindra XUV 3XO
The Mahindra XUV 3XO will be an excellent option for Australian families seeking a safe, city-friendly compact SUV equipped with the latest technologies and features.
It has the power and performance to deliver in Australia’s demanding suburban environments while also being frugal in terms of fuel economy and running costs.
Yes, it will have some incredibly stiff competition in the form of excellent competitors like the Chery Tiggo 4 Pro, so the real question for the XUV 3XO will be price.
If the Indians can bring it to market at or ideally below what Chery offers the Tiggo 4, then we’re likely to soon see a lot more Mahindras on Australian roads.
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MORE: Explore the Mahindra showroom