24k SUV lands but there’s a catch

A jaw-dropping affordable SUV has just hit Australian roads but before buyers get swept up in the low price and long feature list, there is something they should know.

Mahindra’s newest compact SUV, XUV 3XO, has just launched in Australia with a jaw-dropping price of $23,490k (introductory offer) for the base model and flashy features like a panoramic sunroof, surround-view cameras and level 2 ADAS.

It’s a zippy, family-friendly SUV that’s hard to ignore.

But while it may look like the ultimate bargain, it comes with a catch.

Mahindra isn’t submitting it for ANCAP testing, as it’s not mandatory in Australia.

Instead, the automaker is working on tuning the vehicle to meet Australia’s upcoming 2026 ANCAP protocols which include new benchmarks for post-crash safety, driver monitoring and advanced autonomous braking.

That doesn’t mean the car won’t be tested at all.

It’s likely ANCAP will independently test the vehicle.

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Mahindra XUV 3XO. Picture: Daniel Snare

A social media clip recently revealed ANCAP conducted a test on this model; however, its rating has not yet been released.

ANCAP CEO Carla Hoorweg said consumers shouldn’t overlook the importance of a verified rating.

“It is positive to hear Mahindra are working to bring safety improvements to their future model line-up, but consumers should be aware that – until independent safety testing is undertaken – the safety performance of any new model arriving in our market is unknown,” she said.

Hoorweg emphasised that safety is critical in the compact SUV category.

“The Mahindra 3XO is entering a very competitive segment with a competitive price-tag, and while some may suggest safety isn’t important for the smaller end of the market, in fact the opposite is true,” she said.

“Smaller vehicles, by physical size, are at a disadvantage out on the road. We all drive within a mixed fleet of larger cars, utes, vans, and trucks, so having a high level of structural safety, on-board safety features, and best ability to avoid a crash is critical for those looking to purchase a smaller vehicle.”

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Interior of Mahindra XUV 3XO. Picture: Daniel Snare

Budget-friendly cars like the XUV-3XO often appeal to younger, more inexperienced drivers or older Australians, who may be more vulnerable in crashes, Hoorweg said.

“We also need to think about the consumer cohorts that are likely to buy these vehicles. They’re generally some of the most at-risk – younger, more inexperienced drivers and older drivers who are physically more vulnerable.”

Despite the lack of ANCAP testing, Mahindra insists the car is built to high safety standard and has been tested in India.

According to the brand, the XUV 3XO features 55 safety features, including six airbags, level 2 ADAS, Bosch electronic stability program and 360 degree camera system.

The 3XO on sale today is based on the heavily modified platform originally used by SsangYong’s Tivoli, first released here in 2018.

The price is right but buyers have to be mindful. Picture: Daniel Snare

Mahindra says it has made major structural improvements but admits the car isn’t currently tuned to meet ANCAP’s stricter rules coming in 2026.

A revised model will be submitted for future testing which could result in a higher price.

With a current entry price below many hatchbacks and a lengthy 7-year warranty, the XUV 3XO offers strong bang for buck.

The base model AX5L offers a sunroof, wireless Apple CarPlay and Android Auto, a 6 speaker system for $23,490 drive away (July-August introductory offer).

The top spec AX7L adds a panoramic sunroof, leatherette interior and cabin, and a 360-degree camera for $26,490 drive away (July-August introductory offer).

But with the current model not built to ANCAP’s future crash standards, and a revised version already in the pipeline, buyers need to weigh up whether to buy now or wait.

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