Will this all-new compact SUV be the best-selling Mahindra in Australia? The Indian industrial giant thinks so, and there are plenty of reasons to suggest the Mahindra XUV 3XO will be a game-changer for the Indian auto brand in this country.
The XUV 3XO might be a small SUV but it’s a seriously big deal for Mahindra as it looks to grow beyond its traditional agricultural niche and hit the mainstream.
Mahinda’s smallest and cheapest model so far enters as a wannabe disruptor in one of the largest, most competitive new-vehicle segments in Australia.
The 3XO landed its first blow even before it went on sale today (July 4), with an introductory price of $23,490 drive-away for the entry-level variant, knocking off the Chery Tiggo 4 as Australia’s cheapest SUV.
The move may raise eyebrows and kick off the 3XO’s Australian story strongly, but it’s up against stiff competition and has a mixed bag of tricks to win over a new legion of buyers for Mahindra.
Small SUVs accounted for 17.9 per cent of all SUVs sold in Australia in the first six months of 2025, with more than 100,000 sold, led by the Hyundai Kona, MG ZS and GWM Haval Jolion.
Mahindra company says the 3XO will bring first-time buyers to the brand, and that’s also the story behind the tongue-twisting name that replaces that of its predecessor, which was sold overseas with XUV 300 badging to sit more neatly with its larger XUV 700 mid-size SUV sibling.
According to Mahindra, the name change for the new model represents an aspiration to become a ‘CXO’ – customers on their ‘upgrade journey’ as professionals who wish to become a ‘chief-x-officer’ of some kind. No, we don’t quite understand it either.
Key customers the automaker is targeting with the 3XO include young women, older empty-nesters (our words, not Mahindra’s) and used car shoppers who might be won over by the low price and seven-year warranty.
There’s a capped price servicing package too, but set the numbers aside: is the 3XO a convincing enough entrant into the small SUV segment to truly shake up the established order?
How much does the Mahindra XUV 3XO cost?
The XUV 3XO is offered in two model grades, with the AX5L priced at $23,490 drive-away nationally until September 1, 2025, when it will revert to $23,990 drive-away, the same price as the Chery Tiggo 4.
| Model | Drive-away price |
|---|---|
| 2025 Mahindra XUV 3XO AX5L | $23,490 drive-away ($23,990 after August 31, 2025) |
| 2025 Mahindra XUV 3XO AX7L | $26,490 drive-away ($26,990 after August 31, 2025) |
There are no equipment options for the entry-level grade, with the higher-spec AX7L commanding a $3000 premium at $26,490 drive-away, and $26,990 drive-away from September 2025.
Everest White is the only standard exterior paint colour, and all other finishes cost an extra $495, with the AX7L distinguished by a black roof regardless of colour choice.
The eye-catching Citrine Yellow is exclusive to the AXL7, on which it replaces the Stealth Black hue offered for the entry-level AX5L.
To see how the Mahindra XUV 3XO lines up against the competition, check out our comparison tool
What is the Mahindra XUV 3XO like on the inside?
Roomy and well-equipped. The 3XO is just under four metres long to avoid a higher tax rate in India, but its wheels are stretched to each corner of the vehicle to maximise its unusually long 2600mm wheelbase.
For comparison, the Hyundai Kona has the same 2600mm wheelbase, but at 4350mm overall it’s 360mm longer than the 3XO.
Between the two trim levels, the key differences inside are the leatherette upholstery and larger ‘sky roof’ sunroof for the AXL7, while the base variant has black cloth and a traditional-size sunroof covering just the front seats.
It’s also worth mentioning for a vehicle at this price that there are power windows front and rear, plus power-folding exterior mirrors on the AX7L.
Both model grades have a leather-wrapped steering wheel and gear lever, as well as the same generous headroom up front, with a manual-adjust driver’s seat and steering column which could do with more reach adjustment for taller drivers to find a more comfortable driving position.
The seats in the AX7L we tested were firm and comfortable but couldn’t be described as soft or plush, although the small side bolsters do more than expected to keep you in position around corners.
The fit and finish is good, with stitching across the seats, dash and all four doors, pleasant leatherette dash coverings and speaker mesh for the AX7L’s Harman Kardon audio system hiding the 3XO’s price.
Nowhere does the cabin come across as overly cheap or cost-focused, and there’s a piano black applique – patterned above the chilled glovebox – on the doors and on the centre stack.
The stack’s array of physical buttons for the standard climate control is welcome, and although the button fonts and design do look a little dated that’s a win for many buyers and a conscious effort not to bury vehicle controls in a touchscreen menu.
The 10.25-inch central infotainment touchscreen is identical in size to the full-colour digital instrument cluster, while the steering wheel has buttons which are again a tad dated and require small finger work, but work well nonetheless.
The indicator and wiper stalks feel better than the 3XO’s price point, so does the textured material on the steering wheel itself.
All grades have a wireless smartphone charger, wireless Apple CarPlay and Android Auto smartphone connectivity, and a space under the centre stack for your handset.
There’s also a small centre console bin, which also provides rear passengers with air vents, a 12V outlet and a USB port.
The second row is also roomy, although rear headroom in the AX7L is reduced by the larger ‘sky roof’ fitted as standard in the top-spec 3XO.
The 60:40-split rear bench also has a centre armrest with two cupholders, and there are three top-tether mounts and four ISOFIX anchors for child seats, plus a space-saver spare wheel in the 364-litre boot.
| Dimensions | Mahindra XUV 3XO |
|---|---|
| Length | 3990mm |
| Width | 1821mm |
| Height | 1647mm |
| Wheelbase | 2600mm |
| Cargo capacity | 364L |
To see how the Mahindra XUV 3XO lines up against the competition, check out our comparison tool
What’s under the bonnet?
There’s only one powertrain available in Australia: a 1.2-litre three-cylinder petrol engine with a six-speed automatic transmission and front-wheel drive.
| Specifications | Mahindra XUV 3XO |
|---|---|
| Engine | 1.2L 3cyl turbo-petrol |
| Power | 82kW @ 5000rpm |
| Torque | 200Nm @ 1500-3550rpm |
| Transmission | 6-speed auto |
| Drive type | Front-wheel drive |
| Weight | 1392kg (AX5L) 1410kg (AX7L) |
| Fuel economy (combined, claimed) | 6.5L/100km |
| Fuel economy (as tested) | N/A |
| Fuel tank capacity | 42L |
| Fuel requirement | 91 octane regular unleaded |
| CO2 emissions | 137g/km |
It delivers 82kW of power and 200Nm of torque, which are not massive numbers, but peak torque – which is more important for driveability – comes in at a low 1500rpm, while the six-speed automatic isn’t a jerky dual-clutch or a fuel-saving CVT (continuously variable transmission), but a conventional torque-convertor auto.
Combined fuel consumption is 6.5L/100km, which is fairly commendable give the 1392-1410kg weight of each variant, but not fantastically frugal given the low cylinder count and meagre outputs.
Simplicity is often key for automakers to keep prices low, but in the case of the 3XO the more powerful petrol and diesel engines offered overseas were ruled out due to the New Vehicle Efficiency Standard (NVES) emissions legislation introduced in Australia in 2025.
To see how the Mahindra XUV 3XO lines up against the competition, check out our comparison tool
How does the Mahindra XUV 3XO drive?
The 3XO is a competent, well-sorted small SUV that belies its price from behind the wheel, but is not without a few shortcomings.
Pictured: Overseas model shwon
Its underpinnings aren’t as fresh as the name, dating back to 2015 when the X100 platform was first employed under the SsangYong Tivoli small SUV.
The view from the driver’s seat is a little different to typical small SUVs, with unconventional proportions including a short, wide bonnet offering a good view from the high driving position.
There are clear digital instruments, with several layouts to choose from, with the multimedia screen’s wireless Apple CarPlay and Android Auto make for seamless phone mirroring.
A key feature includes the ability to transfer the navigation display to take up the full 10.25-inch instrument cluster.
The engine is quiet with a pleasing thrum on start-up, followed by a smooth idle, and despite the relatively low 82kW power output, all 200Nm of torque comes on from just 1500rpm and gives the 3XO enough acceleration around town.
You can get caught out momentarily by the idle stop/start system, and our test vehicle seemed reluctant to move itself off the mark initially, as if the brakes were binding – even with the auto-hold function off.
But the 3XO is stable and sure-footed on the road, while its overall refinement is commendable for the price point. So too is its switchgear, with the indicator and windscreen wiper stalks feeling sturdy enough for a city-centric commuter.
There are three driving modes, mischievously named ‘Zip’, ‘Zap’ and ‘Zoom’, selectable via a centre-stack button.
Mahindra says they change the engine map – so they should alter throttle response – but on our drive there was no discernible difference between the modes, which said to be for economy (Zip), normal (Zap) and more spirted driving (Zoom).
On hilly roads, the six-speed Aisin automatic can take too long to change down a gear, so you often find the engine labouring at below 2000rpm and a decent push of the throttle required can be required to get it back into its sweet spot.
Rearward vision is good, with decent-size mirrors aided by side-view cameras mounted in them, instilling the confidence to help make snappy lane changes easy.
That’s helped by the steering, which has decent weighting – although not a lot of feedback – but a heavy, sticky on-centre feel at speed.
Here, though, the lane-keeping system is far too intrusive, making for more work on the highway and becoming a serious pest on winding rural roads as it grabs the wheel from you.
The traffic sign recognition system also couldn’t always keep up with the ever-changing speed limits and random speed sign positions on our test route.
Ride quality on the AX7L’s 17-inch 215-section Goodyear tyres is on the firmer side, with the 3XO transmitting everything on the road surface through to the steering wheel, but it was also able to settle reasonably quickly after skipping over bumps, while also taking the edge of larger potholes.
The ride may still be a little crashy for some, but the tilt towards a more sporting drive also means the 3XO has reasonably good body control, too.
The 3XO is more at home around town – where its target customer is most likely to live – and it’s in city driving where the engine has adequate if not judicious power.
The parking sensors – which include front as well as rear sensors in the AX7L – going off randomly did take the shine off its otherwise commendable driving experience, however.
Parking is a breeze with the 360-degree camera standard in both models, and the light steering – which loses the stickiness mentioned earlier at low speeds – makes it easy to position the vehicle.
The adaptive cruise control is easily set using the steering wheel controls, but it’s not so smooth in keeping to the speed limit, with a 40km/h inner-city meander seeing it on and off the throttle instead of keeping a smooth pace.
To see how the Mahindra XUV 3XO lines up against the competition, check out our comparison tool
What do you get?
Two trim levels are available in Australia.
2025 Mahindra 3XO AX5L equipment highlights:
- 16-inch alloy wheels
- Space-saver spare
- Automatic LED headlights with LED daytime running lights
- Automatic high-beam
- Rear LED light bar
- Fixed roof rails
- Sunroof
- Keyless entry and push-button engine start
- Black cloth upholstery
- Power windows with one-touch auto up/down for driver
- Leather-wrapped steering wheel and shifter
- Height and reach adjustable steering wheel
- Electric parking brake with auto hold
- Cooled glovebox
- Rain-sensing wipers
- 10.25-inch digital instrument cluster
- 10.25-inch touchscreen infotainment system
- Wireless and wired Apple CarPlay and Android Auto
- DAB digital radio
- 2 x front USB outlets
- 1 x rear USB outlet
- 1 x rear 12V outlet
- 6-speaker sound system
The AX7L adds:
- 17-inch alloy wheels
- Contrasting black exterior roof
- Front LED fog lights
- Front parking sensors
- Black leatherette upholstery
- Leatherette dash and door trim
- Larger ‘Sky roof’ sunroof
- Auto dimming rear-view mirror
- 1 x front 65W USB-C outlet
- 1 x front USB outlet
- Harman Kardon premium audio with amplifier and sub-woofer
- Cooled glovebox with illumination
To see how the Mahindra XUV 3XO lines up against the competition, check out our comparison tool
Colours
Everest White exterior paint is standard, with metallic and premium finishes costing an extra $495.
Find out more
Find out more about the car
Colours available on the AX5L:
- Everest White (standard)
- Tango Red
- Galaxy Grey
- Stealth Black
The AX5L has black cloth upholstery.
Colours available on AX7L:
- Everest White with Stealth Black roof (standard)
- Tango Red with Stealth Black roof
- Galaxy Grey with Stealth Black roof
- Citrine Yellow with Stealth Black roof
The AX7L has black leatherette upholstery.
To see how the Mahindra XUV 3XO lines up against the competition, check out our comparison tool
Is the Mahindra XUV 3XO safe?
The Mahindra XUV 3XO has not been rated by ANCAP and does not have an official independent safety rating.
Standard safety features include:
- 6 airbags incl. side curtains
- Autonomous emergency braking
- Adaptive cruise control with stop/go
- Blind-spot monitoring
- Lane-keep assist
- Lane departure warning
- Rear parking sensors
- Surround-view cameras
- Traffic sign recognition
- Tyre pressure monitoring
Upgrades are on the way in 2026 when new ANCAP test protocols are scheduled for introduction, which Mahindra Australia has confirmed it plans to meet by adding extra equipment which may push the XUV 3XO price up.
To see how the Mahindra XUV 3XO lines up against the competition, check out our comparison tool
How much does the Mahindra XUV 3XO cost to run?
The XUV 3XO is backed by Mahindra Australia’s seven-year, 150,000km warranty, including seven years of roadside assistance.
| Servicing and Warranty | Mahindra XUV 3XO |
|---|---|
| Warranty | 7 years or 150,000km |
| Roadside assistance | 7 years |
| Service intervals | 12 months or 15,000km |
| Capped-price servicing | 6 years or 85,000km |
| Total capped-price service cost | $1994 – 6 years or 85,000km |
There is also a six-year/85,000km capped price service package for $1994, covering each 15,000km service interval in that period, with an initial service due at 12 months/10,000km.
Mahindra claims those service costs are 17 per cent below average for the small SUV segment.
To see how the Mahindra XUV 3XO lines up against the competition, check out our comparison tool
CarExpert’s Take on the Mahindra XUV 3XO
The 2025 Mahindra XUV 3XO could be a genuine game-changer for the Indian automaker in Australia.
Despite its older underpinnings, it’s a clear statement from Mahindra and welcome competition for Chinese brands.
The aggressively low pricing shows the company is serious about attracting new buyers and it’s backed by generous aftersales backup and similarly low servicing costs.
Yet none of this is reflected in the solid overall execution of its design, or the quality of its interior fit and finish.
No, the 3XO doesn’t set new benchmarks in the way it goes about its business, but despite its budget focus it doesn’t skimp on features or driving dynamics like some more expensive SUVs do.
It’s clear Mahindra could have cut more corners on equipment levels, but instead it made smart spec decisions to avoid creating a superficial price-leader, and ended up with a genuinely strong value proposition.
There are drawbacks including its unknown safety credentials, and the fact the 3XO will score equipment updates in 2026 to ensure it achieves a five-star ANCAP rating, potentially making 2025 vehicles less desirable in future.
That may not bother many buyers who may be keen to take advantage of rock-bottom introductory pricing that ends on August 31, 2025.
But some may find the engine in Australia’s XUV 3XO merely adequate – both in terms of performance and economy – and it’s certainly not a standout powertrain, even if its Toyota-sourced six-speed auto is a welcome addition.
Does a car this cheap have to excel anywhere? Perhaps not, and the 3XO is an otherwise commendable vehicle that will be easy to drive, own and live with for any new-car buyer on a budget.
Interested in buying a Mahindra XUV 3XO? Let CarExpert find you the best deal here
Click the images for the full gallery
MORE: Explore the Mahindra XUV 3XO showroom
