Review: Mahindra XUV 3XO

Australia’s cheapest SUV doesn’t come from China or Europe so, is it too good to be true?

In a market where cheap cars are hard to find, Mahindra’s XUV 3XO takes the title as Australia’s most affordable SUV at $23,490 drive-away.

With that price, you’d expect some major compromises.

But after a day behind the wheel, it turns out this Indian budget SUV offers great value.

It won’t knock your socks off, fly around corners like a hot hatch or impress you with the latest technology. But it doesn’t have to.

Instead, you get a surprisingly complete package with 55 safety features, twin 10.25-inch displays, a 360 degree camera, Level 2 ADAS and a 7-year warranty.

Driving the Mahindra 3XO through city traffic and torrential rain on Melbourne’s motorways, the SUV handles better than expected.

In pouring rain, the compact SUV felt stable, planted and safe.

Mahindra XUV 3XO. Picture: Daniel Snare

Visibility was great thanks to a high and commanding 1398mm drive eye point.

While its 1.2-litre turbo petrol engine (82kW/200Nm) felt sluggish off the mark, there’s enough punch when you get going.

Mahindra’s quirky drive modes - Zip, Zap and Zoom felt a bit gimmicky as there was barely a noticeable effect on throttle or gearbox behaviour.

Suspension felt firm but manageable.

In peak hour traffic, fuel consumption was high at 11.4L/100km far from the claimed combined 6.5L/100km - something to consider for urban buyers.

The XUV 3XO might be a budget buy but Mahindra has added plenty of kit to make it feel like a great package.

Both the AX5L and AX7L variants come standard with dual 10.25-inch HD displays, Wireless Apple CarPlay and Android Auto, Level 2 ADAS, 360 degree camera and even a sunroof.

The AX7L steps it up with a panoramic skyroof, 7-speaker Harman Kardon audio system, 17-inch diamond-cut alloys and LED fog lamps.

Mahindra XUV 3XO. Picture: Daniel Snare

The interior layout is smart and user friendly, with a mix of physical and screen buttons.

You’ve got two cupholders per front door, a cooled glovebox, wireless phone charger, and even rear seat air vents and phone storage. Comfort wise, the seats are very firm, within 30 minutes I found myself readjusting to get comfortable, however some drivers may prefer a firm seat.

The leatherette upholstery is OK but feels budget.

The infotainment system looks good but did have a few glitches when running Apple Car Play.

There’s a bit of an old-school charm about this car, a proper gear shifter, chunky A/C dials and an easy-to use interface, which may appeal to buyers who aren’t into tech-heavy vehicles.

The car does have some quirks though, the model I was driving kept making a clicking noise when the windscreen wipers were on.

Mahindra XUV 3XO. Picture: Daniel Snare

The indicator tone is also loud and annoying, a softer tone would enhance the driving experience.

The boot size is small with 364L capacity - not enough for big families.

In terms of safety, the 3XO comes packed with impressive driver-assist features including adaptive cruise control, lane departure warning, autonomous emergency braking and more.

But the 3XO hasn’t been tested by ANCAP yet.

Mahindra’s says it’s working on a revised version for 2026 to meet new, tougher crash ANCAP protocols.

The 3XO comes with 7-year/150,000km warranty, 7-year roadside assist and capped price servicing at $1,994 over 6 years, that’s approximately $0.02/km, 17 per cent below segment average.