Audi A1 vs Mahindra Xuv 3Xo

What's the difference?

If you’re eager for a sporty compact hatchback with premium design and luxury car badges, the Audi A1 40 TFSI is a very, very strong contender. It’s fast, fun, and functional for a little hatchback. It’s just very expensive, and for most people the $10K cheaper 35 TFSI model will tick most of the boxes. I’d recommend you drive it before signing on for the top-spec model.

The fact this is Australia’s cheapest SUV is a massive feat for the Indian brand. It also has so much standard kit so this is even more surprising.

In many ways the XUV 3XO is better to drive than its rivals. The three-cylinder turbo engine has plenty of charm and moves this car along with ease, the car feels confident and composed out on the open road, and there aren’t any bings and bongs from intrusive safety systems.

However, things aren’t perfect. I wish the steering column offered reach adjustment, the steering feel wasn’t so inconsistent and the lane-keep assist wasn’t so hands-on.

If you can overlook these quibbles, this tiny Mahindra is an outstanding value buy if you’re considering a first new car.

Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.

I don’t think I’ve seen a better transformation between generations than the current A1. In its previous guise it was bubbly and cute, but now it’s an angular brute.

This version’s S line sports body kit and funky 18-inch alloy wheels certainly help in that regard, but even the standard lighting signatures - LEDs front and rear - make it stand out as anything but a cutie pie city car.

The good news is that it hasn’t grown too much, either. Sure, it is a bit bigger, measuring 4029mm (on a 2563mm wheelbase), 1740mm wide and 1409mm tall. The last one was smaller (3973mm long on a 2469mm wheelbase, 1746mm wide and 1422mm tall), but this one isn’t elephantine in its proportions and so remains simple to park and squeezy enough to be considered a Light Car by industry standards.

And there are some really, really playful colours available. Like this Turbo Blue (which is only for this spec), and Python Yellow. There’s also black, green, red, three different greys, and two whites. The only issue is that flat white (Cortina White) is the only no-cost paint option. The rest will set out back $490 (for Tioman Green or the blue you see here) or $990 (for the rest). 

And then you can option the paint with a black roof, for $1380 combined with blue or green, or $1880 in all the other colours. The black exterior styling pack adds black highlights around the grille and on the front and rear bumpers. Those little Audi four-ring stickers on the rear doors are standard on this spec.

But to be honest, it stands out no matter what colour you choose, and that’s enough to get people’s heads turning on the street. And the interior design? Well, it has some good and bad points. See the interior pictures below to make up your own mind. 

From outside it’s surprising just how small this SUV is. At just under four metres long, the XUV 3XO is shorter than a Mazda2, for example.

The reason for this is because in India there are tax breaks for vehicles under four metres long. The Ford EcoSport, sans the tailgate-mounted spare wheel, was another SUV that met this requirement.

As a result of being so short, this has made the rear overhang virtually non-existent. It’s a strange look, especially because the bonnet is so much longer.

Even though the XUV 3XO is based on the KGM Tivoli (formerly SsangYong Tivoli), which was briefly sold in Australia, you’d be hard-pressed to find visual similarities. The former looks more modern from the outside and has more visual interest with the chunky wheel-arch cladding and diamond motifs.

At the front it’s hard to not see the face of a sad panda. The LED headlights are big and plunge down the front fascia, giving it a droopy and sleepy appearance. It’s not helped by the thick black bar connecting them.

Around the side the diamond-cut alloy wheels are a nice touch, along with the contrast black-painted roof on this AX7L tester.

The rear end is a little on the flat side, though the badging is tasteful. I’m not a fan of the full-width LED light bar, however, as it’s an overdone design cue now.

Inside I appreciate the mix of both old-school and new-school. There are dual 10.25-inch screens ahead of the driver for the digital instrument cluster and touchscreen multimedia system, as well as plenty of physical buttons and knobs for shortcuts and the climate controls.

For such an affordable car I’m surprised how many soft-touch finishes there are in this car. In the AX7L you get an extended use of synthetic leather on the door cards and dashboard, which helps make for a pseudo-premium look and feel.

However, one of my biggest gripes with the XUV 3XO interior is the amount of glossy piano black. It’s on the dashboard, centre console, door cards and even the steering wheel.

This may look cool and slick when you pick the car up from the dealer, but it shows up dust quickly and then gets scratched when you try to wipe it clean. Our tester had fewer than 1000km on the odometer and the centre console was already scratched to the wazoo.

There are elements of the A1’s cabin design that are tremendous. And other bits that are not so tremendous. 

The bad bits include the fact you’re paying about $50,000 on the road for a car that has hard plastic just about everywhere the eye can see.

The good bits are that the textured plastics on the dash are beautiful, and so are the designed elements on the doors. I love the door handles, I love the metallic finish, I love the layout and I love the way it makes you forget that you’re in a luxury-branded car with hard plastic all around you.

The media screen and digital dashboard help, too - it feels technical and premium in the driver’s seat as a result. The graphics are crisp and clear, the menus are mostly easy to navigate, but I had some issues getting Apple CarPlay to work. It has wireless CarPlay, and I had it plugged in, so perhaps that was confusing things.

But the Audi media system also includes Audi Connect in this spec, meaning there are realtime map, traffic and hazard updates, plus a Wi-Fi hotspot, fuel prices, parking, weather and Google maps and services. It’s high-tech, and if that’s what you like, this is definitely going to please you more than a Mini Cooper.

Practicality is good, with bottle holders in all four doors, cup holders between the front seats and a covered centre console and wireless charging bay in front of the shifter. In the back, storage is sparse: aside from the door pockets, there’s nothing - no cup holders, no map pockets. 

There is enough space for four adults in the A1, so if you plan to take your mates to brunch or if you’ve got young kids, you should be comfortable enough in here.

I had the driver’s seat set for my own height (182cm) and I was able to slide in to the rear seat without much fuss at all, with adequate knee and toe room, and decent headroom too. Try and fit three across the back and it’ll be uncomfortable, unless those three are very slim. 

There are dual ISOFIX child-seat anchor points and three top-tether points, and the seat structure is pretty flat, making fitment of these types of seats simple enough.

The boot capacity is good for a car of this size at 335 litres, which is a solid 20 per cent bigger than before. You won’t find a spare under the boot floor, though, as all A1s have an inflator kit. The back seats fold down to allow 1090L of cargo capacity, but there’s a ledge you have to contend with if you’re trying to load larger items in. Maybe skip the IKEA trips in this one, then. 

Given this SUV is tiny, I’m blown away at how much interior space it has.

Up front both the seats are manually adjustable, which is to be expected at this price point. Despite this, they’re still comfortable and offer an elevated driving position which is something SUV buyers seek.

In front of the driver is a leather-wrapped steering wheel which feels nice in the hand. While it offers tilt adjustment, it disappointingly doesn’t have reach adjustment. This is frustrating if you’ve got long legs and short arms, like myself.

The 10.25-inch digital instrument cluster has an overall dark and minimal look, but you can cycle through a range of informative views. There’s even one that allows you to display a full-width map.

Moving across, the 10.25-inch touchscreen multimedia system appears to be snappy enough. I’ve experienced fewer glitches in this car than in previous Mahindras I’ve driven.

I like the physical shortcut buttons underneath the touchscreen because it allows you to jump around to key sub-menus a lot easier.

As standard there’s both wired and wireless Apple CarPlay and Android Auto connectivity. With my iPhone 15 Pro Max the connection was flawless and only dropped out during known interference points.

This AX7L spec comes with a seven-speaker Harman Kardon sound system which gets this tiny car booming. The subwoofer in the boot is so powerful it almost feels like overkill.

In terms of storage up front there are two cupholders, big door pockets with two bottle holders, a centre armrest and a cooled glovebox. There’s also a USB-A port, 65W USB-C port and a wireless charger.

Moving to the second row there’s a decent amount of space for adults to sit behind adults. You could easily fit two adults along the rear bench, though pushing it to three would get a little too squishy.

Second-row amenities include rear air vents, a USB-C port with a phone slot, as well as a fold-down armrest with cupholders.

At the back there’s a manual tailgate, which is to be expected at this price point, but finding the trigger to open it is a little tricky. It’s a small button that’s hidden away.

Once the tailgate is open, the amount of boot space on offer is generous. Mahindra claims there’s 364 litres with the rear seats upright.

While the loading lip is high, the boot area is deep and wide. Unfortunately there’s no cargo cover available as standard, which means you’ll need to be careful what you boot back there.

Under the boot floor there’s a space-saver spare wheel, which is fantastic peace of mind if you travel long distances away from tyre repair shops.

The Mahindra XUV 3XO is currently Australia’s cheapest SUV.

There’s a caveat, however, because this is thanks to an introductory pricing offer that ends on August 31.

Currently though, the XUV 3XO line-up starts at $23,490 drive-away for the AX5L and extends to $26,490 drive-away for the AX7L, as tested here.

After August 31 the drive-away asking price of both of these XUV 3XO variants is set to go up by $500. This will see it share the title of Australia’s cheapest SUV with the Chery Tiggo 4.

Despite the affordable asking price, Mahindra has packed a lot of standard kit. This includes 16-inch diamond-cut alloy wheels, 10.25-inch digital instrument cluster, 10.25-inch touchscreen multimedia system, wireless Apple CarPlay and Android Auto, six-speaker sound system, dual-zone climate control, electric park brake with auto-hold, keyless entry and push-button start, leather steering wheel and gear selector and black cloth upholstery.

For an extra $3000 in the AX7L you get a black-painted contrast roof, 17-inch diamond-cut alloy wheels, LED front fog lights, panoramic glass sunroof, seven-speaker Harman Kardon sound system, 65W USB-C charger, cooled glovebox, black synthetic leather upholstery, and synthetic leather on dashboard and door trims.

This 40 TFSI model is the big humdinger in the range. It has the donk, right?

Yeah, it’s a 2.0-litre four-cylinder turbo-petrol engine, which is a full litre bigger in capacity than the base model car. And it’s the same engine fitted to the Polo GTI - a proper hot hatch!

It doesn’t quite have double the power and torque of the entry-level 30 TFSI model, but it does have solid outputs of 147kW (at 4400-6000rpm) and 320Nm (from 1500-4400rpm). That’s enough to slingshot this A1 from 0-100km/h in a hot-hatch-rivalling 6.5 seconds, according to Audi.

Unlike the lower grades, it runs a six-speed dual-clutch automatic, which it needs because it has so much torque. The 30 and 35 TFSI variants have a seven-speeder. All of them, including this one, are front-wheel drive.

There is no quattro/all-wheel drive A1 this time around, and there won’t be an S1, either. So this is it if you want your kicks in a compact car from the Ingolstadt-based brand.  

All variants are powered by a 1.2-litre turbocharged three-cylinder petrol engine that produces 82kW of power and 200Nm of torque.

This is mated to an Aisin-sourced six-speed torque-converter automatic transmission with drive sent to the front wheels only.

Claimed fuel consumption is rated at 6.4 litres per 100 kilometres. You might see close to that on a highway drive, but if you’re primarily city-dwelling like me, then expect higher.

I saw an average of 10.1L/100km during my urban review of the A1 40 TFSI. That was with stop-start engaged the whole time, and the occasional squeeze of the accelerator to test out the claimed acceleration.

Fuel tank size for the A1 is just 40 litres, so if you’re doing what I did with this grade of A1, you can expect to visit the servo every 400km or so.

Mahindra claims the XUV 3XO has a combined urban/extra-urban fuel consumption of 6.5L/100km.

During my testing, however, I achieved a real-world fuel consumption figure closer to 6.2L/100km, which is better than the claim.

All XUV 3XOs have a 42L fuel tank that Mahindra claims can take 91 RON regular unleaded petrol, but 95 RON premium unleaded petrol is recommended.

With my as-tested fuel consumption this means the theoretical driving range from a full tank of petrol is around 675km.

You shouldn’t be surprised to know that the A1 40 TFSI feels a lot like a Polo GTI to drive. It’s quick, it’s entertaining, it’s refined… it’s just about 50 per cent more expensive.

That mightn’t matter to you or factor into your considerations. I just want to point out that you can get a car that’s just as good to drive as this one, and still with a premium German brand attached to it, for a lot less.

The A1 does have it’s own spunk, though. It has a more masculine character, more aggressive styling, and more delightful interior design.

But it also has steering that is predictable and easy to judge, helping it feel nimble and grippy. From tight twisty roads to roundabouts, you’re going to be having fun in the A1 if you’re tooling around town. 

It feels planted and grippy - aside from some front-wheel spin during take-offs if the tyres are cold - and you might notice the suspension can be a touch noisy as it pitter-patters over inconsistencies in the road surface, but the ride is firm yet controlled, offering enough comfort over potholed city roads and speed humps for this tester. And there are several of each of those obstacles on my daily drive to work.

The engine is a sweetheart, offering brilliant linearity to its power delivery. It pulls hard from low in the rev range, meaning you’ll be able to zip through traffic without much hassle at all. The powertrain is super responsive to inputs at speed, especially if you put it in Dynamic mode, which also allows you to hear some pops and crackles from the exhaust system. 

That said, there is some vibration, shuddering and hesitation at low speeds, which is a combination of the stop-start system kicking in and out, a small amount of turbo-lag from the engine and some shuffling behind the scenes from the dual-clutch transmission. You might find the lurchy nature of the first-gear take-offs to be a bit hard to get used to, especially if you spend a lot of time in bumper-to-bumper traffic. 

While this is an Urban Guide review focused on city driving, I thoroughly recommend you find a quiet stretch of twisty road outside the city limits. You won't be disappointed.

Behind the wheel, the Mahindra XUV 3XO feels refreshingly old-school.

The 1.2-litre turbocharged petrol engine does seem like it would be underpowered, but in practice it’s completely adequate. Peak torque comes on tap from 1500rpm so it doesn’t have to work too hard at all.

It’s fun hearing the noise the three-banger makes when under the boil. You don’t hear it much though because the revs are typically kept down low to minimise fuel consumption.

The key reason why this car feels old-school is the six-speed torque-converter automatic transmission. It’s nice to not drive an affordable everyday car that doesn’t have a continuously variable transmission (CVT) or dual-clutch automatic transmission as these can suck the life out of a car or be jerky.

The gear shifts in the Mahindra are sometimes docile, but are smooth and measured. It just operates like a regular car that doesn’t require you to rewire your brain to drive.

There are three drive modes to choose from. They’re hilariously called ‘Zip’, ‘Zap’ and ‘Zoom’. These correspond to Eco, Normal and Sport, respectively.

While I did eventually get used to driving in the ‘Zap’ mode, it felt a little snoozy at points, taking a beat or two to get the car accelerating with traffic. You can sidestep this with ‘Zoom’ which feels much more lively. If you activate cruise control or restart the car, though, it defaults back to ‘Zap’.

The XUV 3XO makes the most sense in the city where you’re able to use its tiny exterior dimensions to navigate tight urban carparks and narrow laneways with ease.

It almost became a challenge for myself to find the smallest parking spot I could slot this car into. As standard on this AX7L there are front and rear parking sensors, as well as a surround-view camera system.

Where this car is let down, however, is the steering feel. It’s incredibly light at low speeds and then as the speed builds it gets very heavy. So much so it feels like I’m getting an arm workout.

Unlike some of its rivals, there is still a semblance of feel through the steering wheel, but this drastic change from light to heavy steering weight is too stark. Somewhere in the middle would be nice please.

Something Mahindra is very good at is developing a comfortable suspension tune and this car is no different. It can tackle pimply urban road imperfections and speed bumps with no problems whatsoever.

Out on the open road this car surprised me. It feels like a much larger car than it actually is and doesn’t get blown around in the lane like small cars can.

The three-cylinder turbo-petrol engine remains confident at higher speeds, though if you frequently travel up hills the fuel consumption will skyrocket. There’s also a bit of road noise, which is to be expected when a car is this small.

For the most part the suspension does a fantastic job at rounding out road imperfections, but bigger bumps or potholes can unsettle the car. It’s not helped by the larger 17-inch alloy wheels.

Out in the twisties this tiny SUV is fairly agile. It’s not the sportiest thing out there by a vast degree, but it remains planted and solid even when pushed into harder corners.

Lastly, another point that makes this car feel old-school is the lack of obtrusive bings and bongs from the safety systems.

Sure the parking sensors can be a little over-the-top and the traffic sign recognition takes over the entire digital instrument cluster when it picks up a new speed limit, but having no driver attention monitor and intelligent speed limit assist is refreshing.

It’s not all perfect however as the lane-keep assist is too hands on for my liking. It activates from 60km/h and is quite overt in how it directs the car through bends.

The Mahindra XUV 3XO hasn’t been crash-tested by ANCAP just yet.

It was, however, tested by India’s less stringent Bharat NCAP testing authority in 2024 and received a five-star rating.

Standard safety equipment includes autonomous emergency braking (AEB), lane departure warning, lane-keep assist, lane centring, adaptive cruise control, traffic sign recognition, rear parking sensors and a reversing camera.

Stepping up to the AX7L gets you a surround-view camera, blind-spot view camera, and front parking sensors.

Notably absent from the entire range is rear cross-traffic alert, as well as a traditional blind-spot monitor that alerts you when a car is in your blind-spot.

There are two ISOFIX points on the two outboard rear seats, as well as three top-tether child seat anchorages across the rear bench.

While the VW Polo GTI that this spec of A1 shares plenty with is backed by a five-year/unlimited kilometre warranty plan, the Audi-badged compact hatch still has a lesser three-year/unlimited kay cover. 

The A1 requires servicing every 12 months or 15,000km (just like a Polo), and there’s a pre-pay service pack you can roll into your finance if you so choose.

That service plan covers either three years/45,000km of driving ($1480) or five years/75,000km ($1990). In the case of the five-year plan, Audi is actually better value than the Polo GTI (which costs $2200 for pre-pay). 

Where is the Audi A1 built? You might be surprised to learn the answer is Spain.

Concerned about reliability? Got questions over resale, problems, issues, faults, recalls or something else? Check out our Audi A1 problems page. 

Like other current Mahindra models, the XUV 3XO is covered by a seven-year, 150,000km warranty with seven years of roadside assistance.

Logbook servicing is required every 12 months or 15,000km, whichever comes first, though the first service is required after 12 months or 10,000km.

The first seven services are capped-price and total $1994. This averages out to $284.85 per service.