The Mahindra XUV3XO is the latest evidence of the Indian giant’s hefty ambitions in Australia. This is a compact SUV with pricing that directly challenges the popular Chery Tiggo 4 at the very affordable end of the new vehicle market. It backs that up with lots of equipment and a strong warranty and service package, and it drives decently too. Powered by a tiny 1.2-litre turbo-petrol engine, it isn’t going to blow your socks off when it comes to performance, and the safety story is as yet incomplete. But at first taste there’s much here to like.
The two-model Mahindra XUV3XO range makes an immediate impact because of its attention-grabbing pricing. The angular exterior isn’t bad looking, either.
The AX5L kicks things off at $23,990 drive away, but an introductory offer valid till August 31 drops that by $500.
The AX7L’s regular price is $26,990 drive away, but until August 31 you can get a $500 discount on this model too.
The obvious competition for the 3XO is the popular Chery Tiggo 4, which kicks off at $23,990 drive away for the Urban and $26,990 for the Ultimate.
Other mini-me SUVs that are priced somewhere in the vicinity are the Hyundai Venue (starting at $22,750 plus on-road costs) and Kia Stonic (from $25,660 plus ORCs).
The biggest seller in this group, sized around 4.0 metres in length, is the Mazda CX-3, which starts a bit further north again at $27,070 plus ORCs.
Of course, at this price, the 3XO is also an alternative to a used car. That’s a key buying group Mahindra is targeting along with first-car buyers and retiree couples.
Standard exterior equipment on the 2025 Mahindra XUV3XO AX5L (long name, isn’t it?) includes LED headlights and taillights, a sunroof, roof rails, a rear spoiler and 16-inch alloy wheels.
Access to the interior is via passive (you have to press the button) keyless entry. There you will find black cloth seats, dual-zone climate control, a leather steering wheel and gear knob, pushbutton start, an electric parking brake and power windows (one touch for driver).
AX7L incentives to jump the extra $3000 include (same design) 17-inch alloy wheels, LED driving lights, leatherette trim for the seats, dashboard and doors, a panoramic sunroof and Harmon Kardon audio.
Both cars have the same powertrain, a 1.2-litre triple-cylinder turbo-petrol engine powering the front wheels via a six-speed automatic transmission.
Both cars come in four colours – not all the same – while the AX7L adds a black roof. Any colour other than white costs $495.
Both 3XOs have a space-saver spare tyre – yes!
They also come with a seven-year/150,000km warranty and up to seven years of roadside assist as per the larger Mahindra Scorpio and XUV 700 SUVs.
The first 3XO service comes after 10,000km and then every 15,000km after that. The first six services average $332.33 each.
At this stage the 2025 Mahindra XUV3XO is not expected to claim a maximum five-star safety rating.
This is because it’s missing a few key items such as a centre-front airbag, blind-spot warning and rear cross-traffic alert and braking.
Mahindra says it also has to make the strength of the steel in its body ‘softer’ to comply with upcoming 2026 ANCAP moving object testing.
The plan appears to be to tune the car and add the equipment to ensure it complies with ANCAP 2026 and test it then in search of a five-star rating.
So for now – and it looks like the next 12 months – the 3XO is not going to have an ANCAP rating.
Standard driver-assist systems the 3XO range does come with includes automatic emergency braking with pedestrian and cyclist detection, adaptive cruise control with stop and go, lane-departure warning and keeping and traffic-sign assist.
Both cars also get the latest generation Bosch stability control (with some tuning done in Australia), six airbags, reversing and 360-degree surround-view cameras, a blind view monitor activated in the cluster when the indicator is activated, high-beam assist and tyre pressure monitoring.
The AX7L upgrades to front parking assist.
Three child-seat top tethers and two ISOFIX mounts help secure young kids in the back seat.
The 2025 Mahindra XUV3XO lineup makes an immediate impact with 10.25-inch digital infotainment and instrument panels.
Both cars come with wireless Android Auto and Apple CarPlay connection, which proved hassle-free. That’s handy because there is no embedded satellite navigation.
The AX7L upgrades with wireless phone charging and from six-speaker audio to a seven-speaker Harmon Kardon system with amplifier and sub-woofer.
AM and FM radio bands are standard and the sound isn’t too bad at all out of the HK system.
As mentioned already, the 2025 Mahindra XUV3XO line-up employs a 1.2-litre triple-cylinder turbo-petrol engine that makes 82kW and 200Nm.
It feeds that to the front wheels via a six-speed automatic transmission made by the highly reputable Japanese firm, Aisin.
There are three drive modes that affect powertrain, steering and stability control performance that are amusingly titled Zip, Zap and Zoom.
That’s eco, normal and sport in everyday auto language.
In Australia we get the lesser of two petrol engine specs that are offered in India with the 3XO.
The higher tune with direct rather than port injection and an intercooler makes 96kW and 230Nm.
Mahindra opted for the lower tune here to ensure compliance with the newly introduced CO2-reduction scheme NVES (New Vehicle Efficiency Standard).
A diesel is also offered in India, but there was never any prospect for that coming in here; too expensive and little buyer interest.
The official combined fuel consumption claim for the 2025 Mahindra XUV3XO is 6.5L/100km across the range.
Urban consumption is rated at 7.6L/100km and extra urban at 5.87L/100km. An engine stop-start system is employed to aid economy. It’s not seamless but not so annoying you instantly want to turn it off.
On test on a predominantly country road and highway test route, the 3XO AX7L returned an average 7.14L/100km average (according to the onboard computer).
In hilly country where full throttle was required more often, the trip computer was showing 9.1L/100km, but it settled down as the country got flatter.
The 3XO can run on the cheapest 91 RON fuel but prefers 95 RON. It has a 42-litre tank, so you should get 400 to 500km in the real world between trips to the bowser.
The 2025 Mahindra XUV3XO is a very orthodox little vehicle in terms of mechanical specification.
It’s based on a car-type monocoque chassis and uses simple MacPherson strut front and torsion beam rear suspension. Mahindra does make a bit of a song and dance about the tuning of the valves with the shock absorbers.
The brake system employs discs all round (ventilated front and solid rear) and the steering system is electric-assist.
It’s a very small car measuring up at just 3990mm – this ensures it gains a tax concession in India – and the AX7L we tested weighs in at just 1410kg.
As is typical of Indian vehicles, the 3XO isn’t shy when it comes to ride height. Roads in India are really bad – worse than here! – and that’s why there’s more than 200mm of ground clearance.
It’s also worth noting the 3XO isn’t a clean sheet design but an overhaul of a vehicle called the XUV 300 that has been on sale in India since 2019. Much has been updated, but the core platform remains the same.
Add all that up and the 3XO drives better than you might expect.
Certainly better than I expected, as my previous Mahindra experience was limited to the ancient and now departed Pik-Up.
As lovable as the Pik-Up is, it makes a LandCruiser 70 Series feel like a Rolls-Royce.
And the 3XO feels pretty good in comparison, too. It drives with no really noticeable foibles. It’s … pleasant.
Let’s start with the engine. There’s not much here to work with but what there is gives its all. The key attribute is less its 82kW and more the 200Nm of pulling power that chimes in from 1500rpm.
Flatten the throttle from a standing start and the 3XO picks up pace steadily. There’s no surge or particular hurry. It just keeps collecting speed. It’s not ambling, but it’s not hurrying either.
It’s better with a few revs and a bit of throttle percentage onboard, responding promptly to calls for acceleration.
Look, it survives okay out on the open road, but urban duties are surely going to be its calling.
All this effort is accompanied by a thrummy triple-cylinder beat. Zip, Zap and Zoom – amusing as they are – don’t seem to change much of anything.
The auto couldn’t shield its many changes entirely but was still smooth enough. I didn’t feel the need to resort to manual changes at the gearshifter too often. But it’s agreeable enough when employed.
And what of the dynamics? Again, very much acceptable.
The 3XO rode comfortably across all manner of surfaces without ever producing a wincing level of intrusion. A period spent riding in the back seat proved comfortable too.
The negative here is the amount of exhaust and road noise the 3XO generates. A security blind or parcel shelf shielding the boot might help a bit, so - we suspect - would some more noise dampening material in the body. There were also a couple of rattles reported from different test cars on the launch including ours, coming from the rear-end somewhere.
But something’s gotta give at this price, I guess.
The 3XO steers with a surprising amount of aplomb. It’s quick, accurate and offers some feel. It complements a tidy handling tune that never gave cause for concern on some rough, winding and very wet roads during the launch drive.
The lane-keep aids are not too intrusive and not too hard to switch off.
The 3XO has a small 10.6m turning circle and good vision out of big windows. Again, urban duties are calling.
The 2025 Mahindra XUV3XO AX7L makes a good first impression when you step inside.
The big screens are a step beyond what you would expect in such a small car and so is the stitched soft-touch materials in the dash and door and the piano black spread through the centre console, centre stack, dashboard and doors.
The faux leather seats also have that stitched look and present well.
On top of that they’re not excruciatingly small. Not big, not supportively bolstered, but still able to accommodate a sizable bottom.
The driver can make height as well as the usual fore-aft and backrest adjustments, but there’s no power assist.
The dimpled steering wheel adjusts for height but not reach.
The soft trims are replaced by hard plastics the further down the cabin you descend, but that’s no issue considering the price.
The 3XO avoids the trend that has predominantly emerged from China that banished dials and buttons from the dashboard.
There are proper physical controls for both the audio system and the climate control, while USB-A and USB-C charge points are also offered up-front.
Get into the screens and there’s a surprising amount of adjustability on offer, especially the instrument cluster. Press a button on the steering wheel for three seconds and it swaps to full-screen satellite navigation. Cop that, Audi!
There is a bit of stuffing about here and there with the screens. For instance, cycling through Zip, Zap and Zoom requires the system to have a think about it all. And it stays stuck on that screen rather than returning to the CarPlay screen.
Storage is pretty basic up front; there are long, skinny door bins that will hold a take-away coffee cup, a moderately sized centre lidded bin, a modest glovebox (it is cooled in both 3XOs and illuminated in the AX7L) and dual cup holders in the centre console.
Impressively, the rear seat offers enough leg, elbow and head space to fit two adults quite comfortably. The backrest is comfortably reclined.
Rear seat amenities include adjustable air-con vents, phone storage adjacent to a USB-C outlet, a 12-volt plug, generous door pockets, individual outboard lights, overhead grips (also for the front passenger) and a centre fold-down armrest with dual cup holders.
Big rear windows ensure you’re going to see out okay, which is great news for kids especially (hey, get your nose out of that screen!).
The boot is a deep narrow cavern with a flimsy floor and quite a high lip to negotiate. The tailgate is unsurprisingly unpowered. There’s not much in the way of features. All that makes it feel a bit unfinished.
Claimed storage space is a decent 364 litres, expanding significantly with the rear-seat split-folded. However, there is a sizable ledge rather than a flat floor when you do so, which is inconvenient.
If you’re thinking the Mahindra XUV3XO made a positive impression, you’re right.
Expectations were perhaps a tad low entering this experience. But the more time I spent with the AX7L (it is a silly name, really) the more I came to respect it.
The price and service package, the equipment, much of the cabin ambience and the surprisingly cohesive drive experience were all positives. The negatives were few by comparison.
Then there are the unknowns. Most importantly, just how well will it hang together and for how long?
At first taste though, it’s undoubtedly another viable contender in the tiddler SUV segment and an obvious direct rival for the Chery Tiggo 4.
Roll on the comparo!
2025 Mahindra XUV3XO AX7Lat a glance:
Price: $26,490 (drive away) introductory offer; $26,990 drive away from September 1
Available: Now
Engine: 1.2-litre triple-cylinder turbo-petrol
Output: 82kW/200Nm
Transmission: Six-speed automatic
Fuel: 6.5L/100km (ADR Combined)
CO2: 136.55g/km (ADR Combined)
Safety rating: Not tested