What's the difference?
The Audi A5 has done something naughty. It’s replaced the Audi A4.
Or at least that’s the case for now after the Ingolstadt brand made a bit of a mess of its naming strategy.
Essentially, the Audi A5 is now available as a sedan or a wagon, and the next A4 coming soon will be electric. The previous A5 was a swoopier two-door coupe or four-door gran coupe style model. So the A5 is now effectively Audi’s main BMW 3 Series or Mercedes C-Class and CLA rival.
Plus, the Audi S5 is also here to cater to performance car fans.
Can a new platform, a sleek, fresh look and a techy interior do the job?
We’ve been pedalling around the Victorian countryside in the hopes of finding out.
Stick with me, and I reckon we’ll get to the bottom of it. The question about the car, that is, not the bottom of Victoria.
Mahindra has long been known as a tractor brand and a maker of rugged utes and SUVs, but it’s now dipping its toe into Australia's light SUV segment.
The XUV 3XO marks a further shift in the Indian brand’s local focus from rural and regional to metropolitan.
This tiny SUV goes up against some stiff competition including the Chery Tiggo 4, Hyundai Venue and Kia Stonic, among others. However, the Indian-made SUV holds a specific title that’ll make it stand out among the crowd.
The Audi A5 remains a convincing option in the premium mid-size sedan category, even with the near-$10K price increase over its equivalent grade A4 predecessor.
Even in its base spec, it’s a lovely thing to drive and adds enough new kit to be a reasonable option when it comes to value. In terms of tech usability, it stands out from rivals. Practicality is still king for Audi.
But for the heart-over-head types, the S5 is fast and fun while remaining a comfortable cruiser and the price is decent. On a personal note, a six-cylinder wagon? That's a big yes from me.
For the time it’s available, it’s hard to go past the value on offer in the S5 Edition One. Getting an AWD V6 with that kind of capability for under $100K is something that's sure to tempt buyers. If it doesn’t, we need to take a good look at ourselves.
Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.
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 A5 incorporates Audi’s new design language in a way that makes the 2026 model stand out from Audi’s older offerings, but we won’t know how well it works in the family until more new-gen Audi cars arrive.
For now, the A5 is a generally handsome car. It very much looks like an Audi from the front, even a recent A4 if you only very quickly glanced.
The aforementioned S line styling does plenty in making even the base Audi A5 look like a properly luxe thing. There were a few double-checks at the launch to make sure drivers were getting into the right cars.
Fortunately the new car’s designers refrained from busying up the car with trim, the only big features being the side vents at the front.
But even in Avant form the S5 looks athletic, quad-exhausts in the lower bar and the angular rear bodywork moving away from the previously softer, more rounded look Audi had gone with before.
Inside, the changes are arguably more obvious. The A5 is now much more ‘screeny’ than before, especially if optioned with the passenger-side touchscreen.
It’s still decidedly Audi in its layout and design, with geometric shapes on the steering wheel, screen housing, door cards and even on the gear shifter, which is no longer the more traditional handle-type.
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.
…and that gear selector is a bit indicative of the new A5’s interior. It’s now more of a switch that requires a little more attention than the traditional shifter, just like the way the more screen-focused interior requires a little more of your eyeball time than physical buttons.
Don’t get me wrong, as far as screens in modern cars go, Audi seems to have made it as easy as possible to use the new-gen software in the A5. The menus are clear, there are good shortcuts and there’s no lag… but buttons are always better when your focus needs to be on the road.
Fortunately the driver display is nice and clear, it’s a good update on Audi’s ‘Virtual Cockpit’ and you can set it to display important information without looking too busy.
Ergonomically, the way the central screen is angled towards the driver, the centre console layout and the small control panel on the door for lights, mirrors and the like all seem to be well considered and mean you don’t have to awkwardly reach for anything.
There are a few quirks specific to the A5 and S5, one being that if you opt for the panoramic sunroof, it comes with a transparency switch rather than a physical cover, so it doesn’t do much to keep the light out.
It’s also good to note that the passenger screen - again, if optioned - turns to privacy mode when playing media so as to not distract the driver. Pretty handy!
Behind the front row, a regular-sized adult should have enough room to sit comfortably for a decent amount of time without feeling cramped. The light through the sunroof comes in handy here.
Behind that is a 445L boot in Sedan form, or 1299L with the rear seats folded down. As an Avant, the space increases to 448L and 1396L respectively.
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 new Audi A5 range starts from $79,900 before on-road costs for the standard A5 Sedan, though the rest of the models available at launch are all S5 variants. A more powerful A5 with 200kW and quattro all-wheel drive will come later, as well as a 270kW plug-in hybrid A5 quattro variant.
For now, the sole A5 in the line-up is well equipped for the price, coming with standard 19-inch alloy wheels, matrix LED headlights with adjustable lighting signatures, keyless entry and digital key via Audi’s app, electric bootlid (or tailgate, given its liftback style) and S line styling as standard.
Interior features include sports seats in real and synthetic leather, heated and electrically adjustable up front, leather steering wheel, tri-zone climate control, a 14.5-inch OLED multimedia touchscreen and 11.9-inch driver display, wireless phone charging as well as wireless Android Auto and Apple CarPlay.
The A5 can be optioned with a Style pack for $3000 which adds 20-inch wheels, tinted glass and black exterior trim. There’s also a Premium pack for $3769 which adds a head-up display, high-power USB ports, a Bang & Olufsen sound system, ambient lighting and front door acoustic window glazing.
The other key variants in the line-up from launch are the S5 Sedan and S5 Avant, coming in at $114,900 and $117,900 respectively. Aside from the more advanced drivetrains, the S5s also gain plenty more features over the A5 including 20-inch Audi Sport alloy wheels, selectable OLED rear lights, tinted windows and more paint colour options.
Inside, Nappa leather-upholstered seats gain cooling and massage functions up front, the steering wheel is heated, and there’s ambient lighting with a ‘dynamic interaction light strip’ that changes colour based on vehicle functions like indicating or changing temperatures.
There’s also a head-up display, high-power USB outlets, a Bang & Olufsen sound system and, perhaps most notably, a 10.9-inch touchscreen for the front passenger as standard. It’s a $1500 option in the A5.
Audi also has a launch variant of the S5, the Edition One, which comes at a lower price and a trim spec closer to the A5, but with the S5’s performance. It has non-adjustable sport suspension, for example, and to score much of the main S5’s kit requires cost-options or option packs.
But the prices are tempting, just $99,900 for the S5 Edition One Sedan or $102,900 for the Avant, $15,000 less than their same-power siblings. For an extra $6000, you can add a head-up display, high-power USB ports and the Bang & Olufsen sound system to the Edition One.
Comparing the entry A5 to the recent entry-level A4, the new A5 wears a price increase of $8000 (the ageing A4 is $71,900), but has more power and a much more modern interior. On price alone it seems a steep jump, but the value is still there compared to rivals. A Mercedes C200 currently starts from $89,900, while a BMW 330i is $92,900.
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 Audi A5 is powered by a four-cylinder turbo-petrol engine which powers the front wheels via a seven-speed dual-clutch automatic transmission. It makes 150kW of power and 340Nm of torque, and should, Audi says, propel the A5 to 100km/h in 7.8 seconds before (eventually) reaching a top speed of 248km/h.
The S5, in all its variants, is powered by a 3.0-litre turbo-petrol V6 which is assisted by a mild hybrid system. It produces 270kW and 550Nm, sending that to all four wheels via a similar seven-speed dual-clutch.
The S5 is much quicker as a result - 100km/h comes along in just 4.5 seconds according to Audi, before reaching a 250km/h top speed.
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.
Audi claims the A5 uses 6.9 litres of fuel per 100km, which should theoretically deplete the 56-litre fuel tank after 811km of driving. We couldn’t test this on the launch, but reaching claimed fuel efficiency figures remains an elusive challenge.
The S5, according to Audi, comes with an impressive 7.1L/100km figure in Sedan form, or 7.2L/100km as an Avant. That’s 788km and 777km of theoretical driving range if you’re up for a challenge.
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.
One of the first press cars I ever drove as an even younger lad than I am now was the circa-2017 Audi S4.
Without the perspective of all the many, many cars I've since driven, that S4 blew my mind a little bit with its combination of capability and refinement.
Now, with the context of most of the cars available to the Australian buyer in mind, it’s reassuring to get into this new generation and find that the mid-size Audi torch has been gracefully passed on.
Audi says the new generation, sitting on its new platform, has more focus on balanced driving dynamics, steering precision and steering feel. Without sacrificing comfort, Audi wants the A5 to be a sharper driver’s car.
It might not gel with the Euro tradition of a rear-drive executive sedan given the base A5 is front-wheel drive - the brand of course focusing on its quattro all-wheel drive system - but the A5 is decidedly agile for its size.
Compared to the S5 especially, as the A5’S 1770kg plays the S5’s 2025kg in Sedan form (2040kg as an Avant). It’s a noticeable weight difference, and it makes the A5 more playful without getting properly ragged.
It also rides on smaller 19-inch wheels and would overall probably make for the better daily driver. Even without the all-wheel-drive traction and extra power the S5 offers, the A5 makes a good case for properly plush commuting. Its 150kW isn’t lacking by any means, and that 340Nm does plenty to help when overtaking.
Its suspension feels well damped, keeping the road’s imperfections out of the cabin without numbing the ride and leaving you without feedback. The steering is similarly direct without being too heavy, making the A5 feel athletic for its size.
But for all the A5’s strengths, there is something undeniable about a six-cylinder European sedan (or wagon). The S5 is heavier, sure, and therefore not as naturally nimble, but it makes up for it. And it’s not just the extra power and mild-hybrid assistance.
It’s a great highway cruiser for a start, but it also adds the confidence of all-wheel drive to a trip, which proved extremely useful on the very rainy winter day we tested it. It holds up well on rough surfaces despite the bigger wheels and extra heft, plus it doesn’t feel out of hand when cornering fast, rolling into a predictable understeer rather than quickly losing traction.
But if you’re in any way conscious of your budget, consider the Edition One. It doesn’t lack any of the key things that make the S5 great, and you get to pocket enough money to buy a second used car.
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 A5 and its S5 variants share the same safety features, with the full suite of Audi’s more-than 30 safety and driver assistance systems standard across the line-up.
Physically, the A5 has nine airbags and has been crash-tested by Euro NCAP, the firm awarding it five stars. There's no local ANCAP score as yet.
Some of the key safety features in the A5 and S5 models include a driver attention alert, seatbelt reminders, tyre pressure indicator, adaptive cruise control, lane departure warnings and lane assist, front braking assist, front and rear cross-traffic alert, speed limit sign recognition, surround view cameras and park assist with front and rear parking sensors.
There are also ISOFIX points for fitting child seats to the rear outboard seats.
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.
Audi’s five-year/unlimited kilometre warranty is starting to fall behind the industry standard, though is about normal for a premium brand. On top of this, customers can opt to purchase extra years of warranty up to a maximum nine years which costs $3590.
Audi does also offer 12 years of bodywork manufacturing warranty against corrosion or perforation. There’s also five years of Audi roadside assistance.
Servicing intervals for the A5 come in at every 15,000km or 12 months, with customers able to purchase fixed-price servicing plans at a discount compared to paying per service.
A five-year servicing pack for the A5 Sedan is $3360, and for the S5 it’s priced at $3540.
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.