Mahindra XUV3XO targets Chery Tiggo 4 head-on

The Indian auto giant Mahindra has revealed China-fighting rock-bottom pricing for its new XUV3XO compact SUV, as it pushes to become a major sales player in Australia.

The two-model 3XO ranges lines up directly against the popular Chery Tiggo 4 priced at $23,990 drive away for the A5XL grade before stepping up to $26,990 drive away for the AX7L.

And orders placed on either model out to August 31 collect a $500 discount, reducing the price to $23,490 and $26,490 drive away, respectively.

The 3XO’s pricing undercuts all other relevant competition including the Hyundai Venue, Kia Stonic, MG ZS and the biggest-selling Light SUV, the Mazda CX-3.

While Mahindra has been in Australia for 20 years and has recently started showing some mainstream form with the Scorpio and XUV700 SUVs, the 3XO is the first in a new generation of models designed to energise Aussie new car buyer interest.

It has set the XUV3XO the goal of becoming a top five seller in the light SUV segment, which equates to about 6000 sales a year. By comparison, the Tiggo 4 has already sold nearly 8000 examples in the first six months of 2025.

Mahindra is also aiming to become a top 15 sales player in Australia by 2030, which in current terms equates to more than 20,000 sales per year.

Right now, however, it says it is hovering around 4000 sales per annum in Australia, which equates to 30th in the sales charts. Its numbers are not publicly available because it does not publish via VFACTS.

Essentially, the pricing of the 3XO is a realistic assessment of the gulf between where Mahindra wants its public perception to be in Australia as a sophisticated, modern auto maker, and where it currently sits based on its tractor-making history and agricultural models like the now departed Pik-Up.

“For us with the Australian industry and this particular segment being where it is it’s very important to be able to cut through the noise … and get people to try out our car,” said Sachin Arolkar, Head of International Operations at Mahindra & Mahindra.

“We seriously believe if you try out the car you will go and buy … That’s the confidence we have.

“It’s very important for Mahindra to have people driving the car and that’s the reason for the pricing being what it is.”

The fundamental 3XO mechanical package is identical across both models, combining an 82kW/200Nm 1.2-litre triple-cylinder turbo-petrol engine with an Aisin six-speed automatic transmission to power the front wheels.

A 6.5L/100km combination fuel claim is made, while Mahindra emphasises the performance focus of the 3XO by issuing a 4.6 sec 0-60km/h claim. It doesn’t mention 0-100km/h.

In India a higher tune with direct rather than port injection and an intercooler makes 96kW and 230Nm. But that was ruled out here because of our newly introduced CO2-reduction scheme NVES (New Vehicle Efficiency Standard).

Other mechanical aspects of the 3XO include a monocoque platform carried over from its XUV 300 predecessor never sold in Australia, Macpherson strut front and Torsion beam rear suspension, electric-assist steering and four-wheel disc brakes.

Equipment levels separate the two models. The AX5L includes LED headlights and taillights, a sunroof, roof rails, a rear spoiler, 16-inch alloy wheels, keyless entry, 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 the driver).

AX7L additions include 17-inch alloy wheels, LED driving lights, leatherette trim for the seats, dashboard and doors, a panoramic sunroof, wireless phone charging and an upgrade from six-speaker no-name audio to a seven-speaker Harmon Kardon system.

Both cars come with 10.25-inch digital infotainment and instrument panels, wireless Android Auto and Apple CarPlay connectivity.

AM and FM radio bands are standard, but there is no embedded satellite navigation.

Both cars include a space saver spare tyre, while all colours bar white add an extra $495. The A7XL includes a black roof.

Mahindra is holding off testing the 3XO for ANCAP until tougher 2026 protocols come into effect. Currently, its key safety gear includes automatic emergency braking with pedestrian and cyclist detection, adaptive cruise control with stop and go, lane-departure warning and keeping, traffic-sign assist,  six airbags, reversing and 360 surround-view cameras, a blind view monitor activated in the cluster when the indicator is activated, high-beam assist and tyre pressure monitoring. It misses out on a front-centre airbag, rear cross-traffic braking and blind-spot warning.

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