Mahindra XUV 3XO takes aim at small SUV market with aggressive pricing

The Mahindra XUV 3XO has landed with a drive-away price of $23,490, substantially undercutting established players like the Hyundai Venue and Kia Stonic.

• Power and torque: 82 kW, 200 Nm, 0-60 km/h in 4.6 seconds

• Fuel consumption: 6.5 L/100 km combined

• Standout features: panoramic Skyroof and twin 10.25-inch displays

• Safety: Level 2 ADAS, six airbags (ANCAP rating pending)

• Fleet consideration: fuel cost approximately $11.8/100 km; EV equivalent approximately $2.7/100 km

What makes this particularly interesting is how Mahindra has approached the spec sheet. While many manufacturers strip features to hit lower price points, the XUV 3XO comes loaded with technology typically reserved for vehicles costing several thousand dollars more. The 1.2-litre turbocharged engine delivers respectable performance, hitting 60 km/h in just 4.6 seconds, while Level 2 driver assistance and dual 10.25-inch screens are standard across the range.

Two variants will be available from 4 July: the AX5L and AX7L. Both come with Mahindra's comprehensive seven-year warranty and capped-price servicing program, which should help address any lingering concerns about long-term ownership costs.

Variant Comparison

*Mahindra quotes 0-60 km/h in 4.6 s.

Performance & Drivability

The three-cylinder turbo engine feels more capable than its modest displacement suggests. There's decent pull from low revs, making city driving relaxed, and it settles into a comfortable rhythm on the highway. Mahindra has fitted three drive modes called Zip, Zap and Zoom, which adjust throttle response and steering weight depending on whether you're dealing with stop-start traffic or tackling some twisty back roads.

The Aisin six-speed automatic transmission does its job without fuss, and the 5.3-metre turning circle makes parking in tight spaces less stressful than you'd expect from an SUV.

Ride quality has clearly been a focus area. Mahindra has developed what they call MTV-CL dampers specifically for Australian road conditions, and the high-strength steel construction helps keep body roll in check despite the relatively tall stance. It's a sensible compromise between comfort and control.

Design & Cabin Tech

The exterior styling follows current small SUV trends with chunky wheel arches and a full-width LED tail-light treatment. The AX7L gets 17-inch diamond-cut alloy wheels that add some visual punch. Inside, the twin-screen setup dominates the dashboard and gives the cabin a more premium feel than the price point would suggest.

The optional panoramic sunroof transforms the interior space, flooding it with natural light. Technology highlights include wireless Apple CarPlay and Android Auto, a 360-degree camera system, and a 65W USB-C charging port. For a vehicle at this price point, the tech offering is genuinely impressive.

The flagship AX7L adds soft-touch materials and a Harman Kardon audio system that elevates the overall ambience. Practical touches haven't been overlooked either - there's a chilled glovebox, 364-litre boot space, and split-folding rear seats for versatility.

Safety & Ownership

ANCAP testing hasn't been completed yet, but the standard Level 2 ADAS package suggests Mahindra is taking safety seriously. The seven-year, 150,000km factory warranty provides peace of mind that's becoming increasingly important in this competitive segment.

Service intervals are set at 10,000km or 12 months, with capped-price servicing totaling $1,994 over six years. Seven-year roadside assistance is included in the package.

Fleet Insights

From a fleet perspective, the numbers are compelling. Fuel costs work out to approximately $11.80 per 100km, while a comparable EV would cost around $2.70 per 100km (roughly 23% of the petrol spend).

Mahindra's dealer network has expanded to over 70 locations nationally, which should help with uptime and service accessibility. The capped servicing program averages two cents per kilometre, sitting about 17% below typical segment averages.

Market Insights

The pricing strategy is clearly aggressive. At $23,490, the XUV 3XO undercuts the Chery Tiggo 4 by $500 and sits thousands below the Hyundai Venue ($27,990) and Kia Stonic ($28,290). While some rivals offer more power, none match the XUV 3XO's combination of panoramic sunroof, dual screens, and Level 2 ADAS at the entry-level price point.

Sustainability Snapshot

The relatively small 1.2-litre engine keeps CO2 emissions to 137g/km, which is respectable for the segment. The body structure incorporates 45% ultra-high-strength steel, which reduces material usage while improving crash energy absorption.

Low rolling resistance tyres on both 16-inch and 17-inch wheel options help with fuel economy, though this remains a petrol-only proposition at launch.

Verdict

For budget-conscious buyers who don't want to compromise on technology and warranty coverage, the Mahindra XUV 3XO deserves serious consideration. The base AX5L offers excellent value for money, while the AX7L adds premium touches for a relatively small premium.

Before making a decision, it's worth comparing against the Chery Tiggo 4, Hyundai Venue, and Kia Stonic to see which package best suits your priorities. The XUV 3XO's combination of aggressive pricing and generous specification could shake up this competitive segment considerably.