The 2025 Mahindra XUV 3XO arrives in Australia with significant expectations and an aggressive pricing strategy that immediately catches attention. Starting at $23,490 drive-away nationally, with its price from September 2025 increasing to $23,990, this compact SUV positions itself as a serious contender in the budget-conscious segment dominated by established players.
Engineering Excellence Meets Budget Reality
Our first impressions of the XUV 3XO in terms of its driving characteristics were very positive. Mahindra gave us no limitations on what we could do with their test vehicles in India, so we put them to some extreme tests, which makes us feel very comfortable to tell you it has been engineered with genuine capability rather than mere cost-cutting in mind.
The powertrain represents a thoughtful balance between performance and efficiency. 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 converter unit that prioritizes smoothness over ultimate efficiency.
Ride Quality and Practical Capabilities
Our drive was on a mostly smooth test track, but any bumps we managed to sniff out seemed to be dealt with admirably. The foundations appear there for decent ride quality. And if you’re one with some rutted roads or aggressive speed humps in your commute then the high ground clearance makes this small SUV surprisingly capable in challenging conditions.
The dimensions tell an interesting story about the XUV 3XO’s market positioning. The 3XO’s length/width/height/wheelbase of 3990mm/1821mm/1647mm/2600mm respectively, puts the 3XO on the stubbier side of the crossover brigade. Yet with more clearances than almost all alternatives. This is crying out for a rugged 4×4 ‘Outback’ treatment.
Technology and Features That Exceed Expectations
Standard equipment across the range includes alloy wheels, LED headlights and front fog lamps, sunroof, keyless entry and engine start, and a surround-view camera with rear parking sensors. Inside, there’s a leather-wrapped steering wheel, a 10.25-inch digital instrument cluster, and a 10.25-inch infotainment touchscreen with wireless Apple CarPlay and Android Auto compatibility. There are also 65W USB-C ports for fast charging, while standard dual-zone climate control ensures comfort across all seating positions.
The technology package represents exceptional value for money, with dual 10.25″ HD displays – high-resolution infotainment screen and digital instrument cluster providing a premium experience typically found in vehicles costing significantly more.
Character and Driving Experience
What we can say with some confidence is that the little Mahindra is a lively, user-friendly, comfort-biased and civilised small SUV. No glaring faults or anomalies appeared, just a cheerful, charming character. For what it represents, the 3XO seems to offer a genuinely engaging driving experience that goes beyond mere transportation.
The powertrain configuration reflects intelligent engineering choices. There’s only one powertrain available in Australia: a 1.2-litre three-cylinder turbo-petrol engine with a six-speed automatic transmission and front-wheel drive. This simplification allows Mahindra to focus on optimizing a single drivetrain rather than spreading development resources across multiple options.
Market Position and Competition
Both use the same 1.2-litre three-cylinder turbo-petrol engine and six-speed automatic transmission with front-wheel drive and claimed 6.5L/100km combined fuel economy. These efficiency figures position the XUV 3XO competitively against established rivals while maintaining the performance characteristics that buyers expect.
The launch timing reflects strategic market positioning. The Mahindra XUV 3XO has been launched in Australia with only a 112PS turbo-petrol engine mated to an automatic gearbox. It also gets an all-black cabin theme and a similar feature suite as the India-spec model.
Overall Assessment and Value Proposition
The Mahindra XUV 3XO offers a sorted ride and engaging drive, ample space, and modern-day equipment. While its boot space is limited, it isn’t a deal-breaker, especially considering the compact SUV’s attractive pricing. It is available with both petrol and diesel power.
The Australian market receives a focused approach with single powertrain availability, which should enhance reliability and service simplicity. The emphasis on technology and comfort features, combined with competitive pricing, creates a compelling proposition for buyers seeking maximum value without significant compromises.
The XUV 3XO represents Mahindra’s most serious attempt to establish a foothold in the Australian compact SUV market. The combination of proven engineering, comprehensive feature packages, and aggressive pricing creates a vehicle that deserves serious consideration from budget-conscious buyers who refuse to compromise on capability or technology.
Real-world performance will ultimately determine the XUV 3XO’s success in the Australian market, but initial impressions suggest that Mahindra has created a vehicle that competes on merit rather than price alone. The thoughtful engineering approach, combined with generous equipment levels, positions this compact SUV as a genuine alternative to established players in the segment.
Frequently Asked Questions
Q: What is the pricing for the 2025 Mahindra XUV 3XO in Australia? A: The 2025 Mahindra XUV 3XO starts at $23,490 drive-away nationally, with the price increasing to $23,990 from September 2025. This pricing makes it one of the most affordable compact SUVs with comprehensive feature packages in the Australian market.
Q: What engine powers the Australian XUV 3XO? A: The Australian XUV 3XO uses a single 1.2-litre three-cylinder turbo-petrol engine producing 82kW of power and 200Nm of torque, paired with a six-speed automatic transmission and front-wheel drive. Peak torque arrives at just 1500rpm for good low-end performance.
Q: What standard features are included with the XUV 3XO? A: Standard equipment includes alloy wheels, LED headlights and fog lamps, sunroof, keyless entry and start, surround-view camera, rear parking sensors, dual 10.25-inch displays, wireless Apple CarPlay and Android Auto, 65W USB-C ports, and dual-zone climate control.
Q: How does the XUV 3XO compare in size to other compact SUVs? A: The XUV 3XO measures 3990mm long, 1821mm wide, and 1647mm tall with a 2600mm wheelbase. While it’s on the smaller side compared to some competitors, it offers higher ground clearance than most alternatives, enhancing its capability on rough roads.
Q: What is the fuel economy of the XUV 3XO? A: Mahindra claims a combined fuel economy of 6.5L/100km for the XUV 3XO, which is competitive in the compact SUV segment while maintaining adequate performance for daily driving needs.
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