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Australia’s new cheapest SUV comes from an unexpected brand

ahmadchaudari@gmail.com July 3, 2025

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The 2025 Mahindra XUV 3XO will start at $23,490 drive-away nationally, undercutting the Chery Tiggo 4 SUV’s $23,990 drive-away price by $500 to become Australia’s cheapest SUV. 

The new benchmark price is for the entry-level 3XO AX5L, with the higher-spec 3XO AX7L priced at $26,490 drive-away. 

The price advantage is temporary, though, with Mahindra confirming this ‘introductory’ pricing for the 3XO will run only until August 31, 2025.

On September 1, Mahindra will apply the standard drive-away prices of $23,990 to the AX5L and $26,990 to the AX7L.

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Even then, the Mahindra XUV 3XO will match the Chery Tiggo 4 – if its Chinese rival remains at today’s prices – as Australia’s cheapest SUV. 

It’s backed by a seven-year/150,000km warranty including roadside assistance, and Mahindra has also announced an additional capped-price servicing package for 3XO customers. 

It says the servicing price is 17 per cent lower than the average cost for the small SUV segment in Australia, costing a total of $1994 for six years/85,000km of scheduled services. 

This means an entry-level 3XO AX5L without metallic paint could be purchased, registered and serviced for six years from $25,484.