Audi RS7 vs Mahindra Xuv 3Xo

What's the difference?

The new-generation RS 7 Sportback heralds the further evolution of this large majestic beast, with more features, a beautifully finished cabin and with more grunt with the looks to match. You’d be hard-pressed to find a better combination of power, dynamics and comfort in the Audi range – apart from in the RS 6 Avant of course.

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.

The big news is the RS 7 Sportback now comes with five seats. The previous generation car had just two seats in the second row. I'll talk more on practicality below but for now let's examine the new styling.

This RS 7 Sportback has new broad, black mesh grille, flanked by gigantic side air intakes, narrow headlights, and a thin upper air inlet which is a hat tip to early racing Audis.

While that new angrier, more angular and menacing face is a showstopper, everything about the new RS 7 Sportback seems to be accentuated further.

Look at the wheels. The previous generation came with 21-inch rims, now the new normal for the RS 7 are 22-inches – they're huge. Those wheel guards also flare out 20mm more than a regular A7's and the rear haunches have bulked up massively.

Come to the back of the car and the diffuser and bumper have also been beefed up. Nobody sitting behind you in traffic is going to think this is just a regular A7.

Don't expect the RS 7 Sportback's insides to be just as hardcore as its exterior. The cabin is almost identical to a regular A7's. It's a stunning cockpit dominated by a dash which protrudes back towards the passengers and houses the media screen. Anther display for climate is set into the big centre console which divides the driver and co-pilot into almost cocooned cells.

The cabin isn't without its RS touches though – there's the sports seats with honeycomb stitching, fully digital instrument cluster with RS specific meters, the RS steering wheel, the Nappa leather on the dashboard and the doors, the aluminium inlays. The level of fit and finish is up there with the best that I've seen on any production car.

The RS 7 Avant is 5009mm long, 1424mm tall and 1950mm across for a wide planted stance.

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.

The previous RS 7 Sportback was a four-seater, now it has five seats. That's right, a middle seat has been added to the second row, but, as you'd expect, it's not the best place be in the RS 7 Sportback, straddling the large driveshaft and ducking under the low roof-line.

That fastback profile does mean headroom in the second row is nowhere near as good as the RS 6 Avant's, but legroom is the same and, at 191cm tall, I can just fit behind my driving position with about 10mm to spare.

Up front it's not as spacious as you might think. That stepped dash protrudes into the passenger's space, the door pockets are thin and the centre console storage under the armrest is small.

Sportbacks are more practical sedans thanks the large opening offered by the hatch. The boot's 535-litre cargo capacity is great and only about 30 litres less than what you have in the RS 6 Avant.

For phones there's a wireless charger and two USB ports in the centre console storage box, while back seat passengers have two USB ports and a 12V outlets. There's also directional air vents and dual-zone climate control in the rear, too.

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.

The RS 7 may look like a large, well-mannered business class car, but think of it as a thug in a suit because this thing is a monster with a 441kW/800Nm twin-turbo petrol 4.0-litre V8.

That's almost 600 horsepower and the supercar acceleration that goes with it is brutal: we're talking 0-100km/h coming in 3.6 seconds. That also matches the RS 6 Avant and it's a tenth of a second faster than the Audi R8 V10 RWD supercar, (and also the previous-gen RS 7 Sportback Performance) and this is a large, four-door, five-seater.

Compared to the previous generation RS 7 Sportback Performance the power is down by 4kW, but torque is up by a whopping 100Nm. Give me torque over power any day.

Shifting gears is an eight-speed automatic transmission, sending the drive to all four wheels.

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.

This is a large, all-wheel drive car with a 600 horsepower V8, but it also has a mild hybrid system in this new generation, which will switch the engine off at let the car coast down hills or at speeds under 22km/h.

Audi says this can save up to 0.8L/100km in real-life driving. That's great news, but consumption is still fairly high with Audi saying that after a combination of open and urban roads the RS 7 Sportback will have used 11.6L/100km.

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.

I've never met an RS model that hasn't been great to drive – these cars are way more than just tough body kits and big wheels. The engineering which separates the RS 7 Sportback from the A7 makes them more distant cousins than siblings.

As I mentioned before the RS 7 Sportback and RS 6 share more than the same twin-turbo V8, there are also the giant brakes in form of 420mm discs at the front with 10 piston calipers and 370mm discs at the rear.

The optional carbon ceramic brakes are the largest ever to be fitted to a production vehicle at 440mm at the front and 370mm at the rear, saving 34kg in mass over the steel brakes.

Now standard for the first time is Audi's Dynamic Package, which adds dynamic steering (a variable ratio) paired with all-wheel steering, a sport differential, and a 280km/h top speed.

Coming standard is adaptive air suspension and for $2850 you can option the Dynamic Ride Control suspension, which is a hydraulically activated adaptive damper system 

At the Australian launch, Audi supplied two RS 7 Sportbacks: one with the air suspension and the other with not only the Dynamic Ride Control system, but also the RS Dynamic Package Plus which adds the ceramic brakes and increases the top speed to 305km/h – this was the car I started off in.

I'm going to say right away that you don't need ceramic brakes for regular road use. Sure it means you can tell people that you have the biggest brakes in the world and they save you almost 35 kilos in weight, and, yes, they're resistant to fading, but they're expensive to replace and the steel ones are incredibly good.

I also feel the Dynamic Ride Control sports suspension isn't necessary in a car like the RS 7 Sportback. This is a Grand Tourer designed to eat up hundreds of miles at lightspeed in comfort.

So, while I found the first RS 7 Sportback with the big brakes and sports suspension sharper and firmer than the standard car, it didn't seem to fit with this vehicle's intent.

The regular RS 7 Sportback still accelerated with the same brutal force and roared at the scenery flashing past. It still handled through the tight corners superbly with excellent turn in, mind-boggling traction and grip, and excellent body control, but all in far more comfort.

This is the point – we covered hundreds of miles at the Australian launch of the RS 7 Sportback in a range of RS models, and sports suspension can go from great to gruelling on Aussie roads with their coarse-chip bitumen and potholes. The RS 7 Sportback, with its air suspension, not only made driving far more comfortable, but easier, too.

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.

The RS 7 Sportback is covered by Audi's three-year, unlimited kilometre warranty which not only falls behind in duration compared to mainstream brands but also its direct rival Mercedes-Benz which now has five-year, unlimited kilometre coverage. 

Service intervals are every 12 months or 15,000km with a three-year plan costing $2380 and a five-year plan for $3910.

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.