The 2025 Mahindra XUV 3XO has arrived in Australia, positioning itself as the country’s most affordable SUV and a compelling option in the fiercely competitive light SUV segment. Launched on July 4, 2025, this subcompact crossover from Indian automaker Mahindra & Mahindra is designed to challenge rivals like the Chery Tiggo 4, Mazda CX-3, Hyundai Venue, and Toyota Yaris Cross. With a starting price of $23,490 drive-away and a feature-packed cabin, the XUV 3XO aims to attract budget-conscious buyers seeking value, technology, and practicality. This article dives into the pricing, specifications, features, and competitive positioning of the Mahindra XUV 3XO for the Australian market, providing a comprehensive overview for potential buyers.
Overview of the Mahindra XUV 3XO
The Mahindra XUV 3XO is a heavily updated version of the XUV300, a model sold in India but new to Australia. Built on the X100 platform, which shares roots with the SsangYong Tivoli, the XUV 3XO measures 3,990 mm in length, 1,821 mm in width, and 1,647 mm in height, with a 2,600 mm wheelbase. Its compact dimensions make it one of the smallest SUVs on the Australian market, yet its generous wheelbase maximizes cabin space, offering a practical and spacious interior for a vehicle of its size. The XUV 3XO’s boot capacity is 364 liters with the rear seats upright, surpassing the Mazda CX-3’s 264 liters, making it a strong contender for urban families and young buyers.
Mahindra has positioned the XUV 3XO as a budget-friendly alternative to Chinese SUVs like the Chery Omoda 5, GWM Haval Jolion, and MG ZS, as well as established Japanese and Korean models such as the Kia Stonic and Hyundai Venue. With a sharp focus on value, the XUV 3XO combines modern design, advanced technology, and competitive pricing to carve out a niche in Australia’s crowded small SUV market.
Pricing and Variants
The 2025 Mahindra XUV 3XO is available in two trim levels in Australia: the entry-level AX5L and the top-spec AX7L (L for Luxury). Both trims are powered by the same 1.2-liter three-cylinder turbo-petrol engine paired with a six-speed automatic transmission and front-wheel drive. The introductory pricing, valid until August 31, 2025, is as follows:
-
XUV 3XO AX5L: $23,490 drive-away (rising to $23,990 from September 1, 2025)
-
XUV 3XO AX7L: $26,490 drive-away (rising to $26,990 from September 1, 2025)
These prices make the XUV 3XO Australia’s cheapest SUV, undercutting the Chery Tiggo 4 ($23,990 drive-away) and MG ZS ($26,990 drive-away). Compared to mainstream rivals like the Kia Stonic ($28,290 drive-away) and Hyundai Venue ($27,990 drive-away), the XUV 3XO offers significant savings, appealing to buyers prioritizing affordability without sacrificing features.
|
Variant |
Introductory Price (Drive-Away, Until Aug 31, 2025) |
Price (From Sep 1, 2025) |
Key Features |
|---|---|---|---|
|
AX5L |
$23,490 | $23,990 |
10.25-inch touchscreen, digital cluster, dual-zone climate control, single-pane sunroof, 16-inch alloy wheels |
|
AX7L |
$26,490 | $26,990 |
Panoramic sunroof, Harman Kardon audio, leatherette upholstery, 17-inch alloy wheels, front parking sensors |
Engine and Performance
In Australia, the XUV 3XO is offered with a single powertrain: a 1.2-liter three-cylinder turbo-petrol engine (mStallion TCMPFi) producing 82 kW (110 hp) and 200 Nm of torque. This engine is paired exclusively with a six-speed automatic transmission, delivering power to the front wheels. Mahindra has opted not to bring the more powerful 96 kW/230 Nm petrol or the 85.8 kW/300 Nm diesel engines available overseas, likely to streamline offerings and keep costs low. The claimed fuel economy is 6.5 L/100 km on the combined cycle, with CO2 emissions of 137 g/km, making it a frugal option for city driving.
The XUV 3XO features three selectable drive modes—Zip, Zap, and Zoom—which adjust engine mapping for economical, normal, or sporty driving styles. During test drives in India, reviewers noted smooth gearshifts and minimal torque steer, though some turbo lag was observed when accelerating aggressively. The engine’s performance is described as adequate for urban environments, with a 0-60 km/h time of approximately 4.6 seconds, though it may feel less responsive compared to rivals with larger engines.
The suspension setup includes a MacPherson strut front suspension with an anti-roll bar and a torsion beam rear suspension with coil springs, offering a balance of comfort and stability. With a ground clearance of 201 mm and a wading depth of 350 mm, the XUV 3XO is well-suited for light off-road duties, such as gravel roads or mild urban obstacles.
Design and Styling
The XUV 3XO’s exterior design is bold and aggressive, aiming to stand out in a segment dominated by sleek, minimalist aesthetics. Its front fascia features a prominent grille with chrome accents, C-shaped LED daytime running lights, and bi-halogen projector headlamps (LED on AX7L). The side profile showcases muscular styling with chunky cladding and 16-inch (AX5L) or 17-inch (AX7L) alloy wheels. The rear is particularly striking, with connected LED taillights and a robust bumper that enhances its rugged appeal. However, some design elements, such as the wheel arch cuts, have been criticized for looking awkward.
Color options include eight single-tone choices—Dune Beige, Everest White, Stealth Black, Nebula Blue, Galaxy Grey, Tango Red, Deep Forest, and Citrine Yellow—along with eight dual-tone combinations paired with Galvano Grey or Stealth Black. These vibrant options allow buyers to personalize their XUV 3XO, catering to younger, urban audiences.
Interior and Features
Inside, the XUV 3XO offers a modern, spacious cabin that belies its compact exterior. The 2,600 mm wheelbase provides ample legroom for front and rear passengers, though the narrow cabin makes seating three adults in the back a challenge. The AX5L features black cloth upholstery, while the AX7L upgrades to black leatherette. Soft-touch materials on the dashboard and door pads, combined with a redesigned center console, create a premium feel, though some lower-grade plastics reflect its budget positioning.
The standout feature is the dual 10.25-inch screen setup, comprising a digital instrument cluster and a touchscreen infotainment system with wireless Apple CarPlay and Android Auto. The AX7L adds a seven-speaker Harman Kardon audio system with a nine-band equalizer, a panoramic sunroof (the largest in its segment), and a 360-degree camera. Other features across both trims include dual-zone climate control with rear vents, a wireless charger, keyless entry, and a cooled glovebox. The AdrenoX operating system enhances connectivity, offering intuitive tech interfaces.
Safety and Driver Assistance
Safety is a strong suit for the XUV 3XO, which earned a 5-star rating from Bharat NCAP in 2024 for adult and child occupant protection. Standard safety features across both trims include six airbags, ABS with EBD, electronic stability control, and Level 2 ADAS with adaptive cruise control, lane-keeping assist, and autonomous emergency braking (AEB) with pedestrian and cyclist detection. However, the absence of a center airbag, rear cross-traffic alert, and blind-spot monitoring may hinder its chances of a 5-star ANCAP rating under Australia’s stricter 2026 protocols.
The AX7L adds front parking sensors to the standard rear sensors and surround-view camera, enhancing parking ease in urban settings. Mahindra has emphasized real-world safety, with crash tests demonstrating structural rigidity, but the lack of tuning for ANCAP-specific requirements could be a drawback for safety-conscious buyers.
Warranty and Servicing
The XUV 3XO is backed by a seven-year, 150,000 km warranty with seven years of 24/7 roadside assistance, offering peace of mind for Australian buyers. Servicing is required every 12 months or 10,000 km for the first service, then every 12 months or 15,000 km thereafter. A capped-price servicing plan costs $1,994 for up to six years or 85,000 km, making maintenance costs predictable and affordable.
Competitive Positioning
The XUV 3XO enters a highly competitive segment, challenging both budget-oriented Chinese SUVs and established players. Its closest rival, the Chery Tiggo 4, offers similar pricing but lacks the XUV 3XO’s panoramic sunroof and Harman Kardon audio. The Mazda CX-3, despite its strong sales, is aging and has a smaller boot, while the Toyota Yaris Cross and Hyundai Venue are pricier but offer hybrid options or more refined engines. The XUV 3XO’s combination of price, features, and warranty makes it a strong value proposition, though its untested brand reputation in Australia’s urban SUV market may pose a challenge.
Driving Experience and Practicality
Test drives in India revealed a smooth and composed ride, with the XUV 3XO handling urban conditions and light off-road scenarios well. The suspension absorbs bumps effectively, and the steering offers three modes—Comfort, Normal, and Sport—for tailored dynamics. While the 1.2-liter engine is sufficient for city driving, it may feel underpowered on highways compared to rivals with larger engines. The 364-liter boot and flexible interior make it practical for small families, though the lack of a hybrid option may deter eco-conscious buyers.
Market Impact and Mahindra’s Strategy
Mahindra’s entry into Australia’s light SUV segment with the XUV 3XO is part of a broader transformation from agricultural vehicles to lifestyle-focused SUVs. The brand’s larger XUV700 and Scorpio models have gained traction, and the XUV 3XO aims to broaden Mahindra’s appeal to urban buyers. With a competitive price, generous features, and a long warranty, Mahindra is betting on value to capture market share. The company’s focus on Australia as a strategic market, alongside South Africa, underscores its global ambitions.
Looking Forward
The 2025 Mahindra XUV 3XO is a game-changer in Australia’s light SUV market, offering unmatched affordability, a feature-rich cabin, and robust safety credentials. Starting at $23,490 drive-away, it undercuts rivals while delivering modern tech and a spacious interior. While its engine may lack the punch of some competitors, and its ANCAP rating remains unconfirmed, the XUV 3XO’s value proposition is undeniable. For budget-conscious buyers seeking a stylish, practical, and well-equipped SUV, the Mahindra XUV 3XO is a compelling choice. Register your interest at Mahindra Australia’s website or visit a dealership like Tynan Mahindra Kirrawee to explore this exciting newcomer.
