Audi SQ2 vs Mahindra XUV3XO

What's the difference?

The Q2 is good value and great to drive – especially the SQ2. The exterior looks new, but the cabin feels older than the larger Q3, and most other Audi models.

More standard advanced safety tech would make the Q2 even more appealing, as would a five-year, unlimited-kilometre warranty. While we’re at it, a hybrid variant would make enormous sense. 

So, a great car, but Audi could offer more to make it an even better proposition for buyers. 

So, what do we make of the Mahindra XUV 3X0?

After our first taster in India, we are pleased with its presentation inside and out, packaging, quality and equipment levels.

And while driving around a brand’s own proving ground cannot give a true indication of how a vehicle performs, steers, handles, rides and stops, our initial impression is that this is an easy, confident, responsive, agile and comfortable small SUV from behind the wheel. More or less.

Of course, not knowing pricing limits a definitive verdict, but the 3XO looks promising, and we’re keen to drive it on Australian roads very soon, so watch this space.

Better still, it is obvious that Mahindra is serious about cracking Australia’s small SUV market, since the 3XO ticks so many of the essential boxes.

In the face of largely cheap yet disappointing rivals out there, that’s a very good thing.

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

This updated Q2 looks almost identical to the previous one and really the only changes are subtle styling tweaks to the front and back of the car.

The front air vents (they aren’t real air vents on the Q2, but they are on the SQ2) are now larger and pointier and the top of the grille is lower. Around the back, the bumper now has a similar design to the front, with those pointy polygons set wide apart.

It’s an angular little SUV, full of sharp-edged shapes like some kind of acoustical wall in an auditorium.

The SQ2 just looks more aggro, with its metallic-trimmed air vents and beefy quad exhaust. 

The new colour is called Apple Green and it’s not really like any colour on the road – well not since 1951, anyway when this hue was hugely popular on everything from cars to telephones. It’s also very close to Disney’s “Go Away” green – look it up and then ask yourself if you should be driving a car that’s kind of invisible to the human eye.

I digress. Other colours in the range include Brilliant Black, Turbo Blue, Glacier White, Floret Silver, Tango Red, Manhattan Grey and Navarra Blue.

Inside, the cabins are the same as before, apart from the larger, sleeker media display, and there are some new trim materials, too. The 35 TFSI has silver inlays with a diamond paint finish, while the 40TFSI has aluminium door sills.

The Q2 has beautiful quilted Nappa leather upholstery, which goes beyond just covering the seats and to the centre console, doors and armrests.

All options offer well laid out and premium feeling cabins, but the disappointing part is that it's an older Audi design, which started out in the third-generation A3, launched in 2013, and still exists on the Q2, even though most Audi models, including the Q3, have the new interior design. This would bug me if I was thinking about buying a Q2. 

Have you thought about a Q3? It’s not that much more in price, and it’s a tad bigger, obviously. 

The Q2 is tiny, at 4208mm end to end, 1794mm wide and 1537mm tall. The SQ2 is longer at 4216mm long, 1802mm wide and 1524mm tall.  

The 3XO is not quite as new as it looks.

Although only on sale in India since last year, the newcomer is actually based on the decade-old SsangYong Tivoli, which was the first model under Mahindra’s brief ownership of the Korean brand (now under KGM control since 2023).

And, if you’ve visited India lately, you might have seen a substantially modified Mahindra version of the Tivoli, badged XUV300 and sold for five years there from 2019, and the actual basis for the 3XO.

Now, Mahindra says that the latter is around 80 per cent new, with fresh sheetmetal clothing the bones of its predecessor(s). And they’re quite contemporary threads, with crisp surfacing, striking LED lighting, clean grille finishes and a pert rear-end design.

Subaru would be proud of the squared-off wheel arches, lofty 201mm ground clearance and sub-four-metre length, while the latter helps keep the small SUV inside an Indian tax bracket. Fun fact: that’s why the old Ford EcoSport, also from Chennai, needed its spare wheel mounted on the tailgate.

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 4x4 ‘Outback’ treatment.

Overall, then, the smallest of Mahindras is an effectively chunky update, with a height and stance to handle the rough and tumble of urban driving.

The Q2 is basically a current model Audi A3, but more practical. I’ve lived with the A3 Sedan and Sportback and while rear legroom is just as confined in those as it is in the Q2 (I’m 191cm and need to squish my knees behind my driving position) getting in and out is easier in the SUV, with its elevated ride height and taller door apertures.

The easier access helps enormously when helping kids into their child seats. In an A3 I need to kneel on the footpath to be at the right level to put my son into the car, but not with the Q2.

The boot space of the Q2 is 405 litres (VDA) for the front-wheel-drive 35 TFSI and for the SQ2 it’s 355 litres. That not bad, and the large hatch makes for a big opening, which is more practical than a sedan’s boot.

Inside, the cabin isn’t enormous, but rear headroom is good, thanks to the fairly high roof.

Cabin storage isn’t terrific, although the front door pockets are big and there are two cupholders up front.

Only the SQ2 has USB ports in the back for rear passengers, but all Q2s have two USB ports up front for charging and media – plus all have wireless charging for phones.

Mahindra reckons that even though the 3XO is only four metres long, it's got the space and the practicality of some 4.7m SUVs.

Which sounds dubious, but first impressions inside reveal ample room for legs, shoulders and heads, even in the sunroof-specced AX7L. Sat high, vision is impressive too, aided by an excellent driving position on nicely-shaped seats, deep glass areas and handy 360-degree camera views.

Based on the old dashboard architecture but with a completely redesigned central touchscreen and electronic instrumentation pod (and both measuring in at 10.2 inches), the effect is modern enough, with a very welcome avoidance of screen-based buttons for actual switches that are incredibly easy to navigate.

In fact, the sheer user-friendliness of the 3XO’s interior is commendable, from the world’s deepest glovebox and chilled centre bin (in the AX7L only) to the various USB ports, cupholders and storage options. The climate control effectiveness is a given if any Indian vehicle is to succeed. And the material fit and finish seemed fine. About the only dislike is the lack of steering-wheel reach adjustment, betraying the Mahindra’s real age.

Moving to the row behind, there’s sufficient space for a pair of 180cm adults, on comfy cushions. Again, vision, storage and all amenities rate highly, with face-level vents especially appreciated at this price point. The 3XO is pitched as a sensible family-car proposition in India so the back-seat area is crucial.

Behind that is the boot, which is fairly large as well, aided by a low floor and a large hatch aperture, while a space-saver spare lurks underneath, so no stupid tyre-repair kit for this sensible small SUV.

There’s also a lot of room under the bonnet…

At the time of publishing, XUV 3XO (here-on in referred to as 3XO) pricing hadn’t been confirmed. But, we’re instructed that the entry-level AX5L will start from “about $25,000”, placing it right among the sharks.

But Mahindra is out for blood, so keyless entry/start, synthetic leather trim, a 10.2-inch touchscreen and 10.2-inch driver display, wireless Apple CarPlay/Android Auto, a surround-view camera, dual-zone climate control, electric folding mirrors, roof rails and 16-inch alloys – with a spare – are included.

From “well under $30K”, the AX7L ushers in 17-sized rims, a panoramic sunroof, Harman-Kardon audio, a chilled glovebox, fog lights, front parking sensors and a shockingly powerful (pun intended) 65W USB-C port to (more than) make up for a missing wireless charger pad.

Lined up against its Chinese and South Korean rivals, the 3XO’s specification is largely on the money. Largely.

However, no DAB+ digital radio is an oversight, and although the Mahindra includes must-have advanced driver-assist safety systems (ADAS) like autonomous emergency braking (AEB) and lane-support tech, it misses out on some secondary nice-to-have alerts optionally available on some rivals – more on them in the safety section later on.

Now, if you’re thinking that the 3XO might look a bit familiar, your eyes aren’t deceiving you. And there’s a very solid reason for that.

There are three grades and each has a different engine. 

The 35 TFSI has a new 1.5-litre four-cylinder turbo-petrol engine making 110kW and 250Nm; the 40 TFSI has a 2.0-litre turbo-petrol four making 140kW and 320 Nm; and the SQ2 has a 2.0-litre turbo-petrol as well, but it puts out a very impressive 221kW and 400Nm.

The 35 TFSI is front-wheel drive, while the 45 TFSI quattro S line and SQ2 are both all-wheel drive.

All have a seven-speed dual clutch automatic transmission – nope you can’t get a manual. There are also no diesel engines in the line-up.

I drove all three cars and, from an engine perspective, it’s like turning the ‘Smile Dial’ up from Mona Lisa in the 35 TFSI, to Jim Carrey in the SQ2, with Chrissy Teigen in between.

It might be tiny and a cylinder down compared to almost all of its Asian rivals, but Mahindra’s in-house 1.2-litre three-cylinder turbo-petrol engine follows European downsizing convention.

This means it relies on advanced technologies to produce comparatively healthy power and torque outputs, being 82kW at 5000rpm and 200Nm between 1500rpm and 3500rpm respectively.

Coming in at around 1400kg, the result is a power-to-weight ratio of about 59kW per tonne, which is modest against the slightly heavier Tiggo 4’s 76kW/tonne, for instance.

Driving the front wheels is a Toyota-made six-speed torque-converter automatic, so no droney CVTs or laggy dual-clutch transmissions here. But we’re disappointed the six-speed manual gearbox offered elsewhere isn’t even an option in Australia, especially after driving the Mahindra.

Audi engines are superbly modern and efficient – even its monster V10 can shut down cylinders to save fuel, and so can the new 1.5-litre four-cylinder engine in the 35 TFSI. Audi says that over a combination of urban and open roads, the 35 TFSI should use 5.2L/100km.

The 40 TFSI is thirstier at 7L/100km, but the SQ2 demands a bit more at 7.7L/100km. Still, not bad. 

What’s not good is the lack of a hybrid, PHEV or EV variant of the Q2. I mean the car is small and ideal for the city, and therefore a perfect candidate for an electric version. Not having a hybrid or EV is why the Q2 model range doesn’t score well for its overall fuel economy.

The official Australian combined fuel consumption average is 6.5 litres per 100km, which translates to 137g/km of carbon dioxide emissions. With a 42L tank, should equate to about 640km per refill.

Urban and Extra Urban numbers are 7.6L/100km and 5.9L/100km respectively.  

Just keep in mind that the 3XO is recommended to drink from the 95 RON premium unleaded petrol bowser.

When it comes to the driving part, Audi can almost do no wrong – everything the company makes, whether it’s low powered or rip-your-face-off fast, has all the ingredients for engaging driving.

The Q2 range is no different. The entry-grade 35 TFSI has the least grunt and, with its front wheels pulling the car along, it’s the only one in the family that’s not blessed with all-wheel drive, but unless you’re doing laps at a track you’re not going to be wanting more power. 

I drove the 35 TFSI for more than 100km on the launch, through the country and into the city, and in all situations, from overtaking on highways to merging and slow traffic, the most affordable Q2 performed well. That 1.5-litre engine is responsive enough and the dual-clutch transmission changes swiftly and smoothly. 

Superb steering and good visibility (although that rear three-quarter view is slightly obstructed by the back pillar) makes the 35 TFSI easy to drive.

The 45 TFSI is a good mid-point between the 35 TFSI and the SQ2 and comes with a very noticeable bump in oomph, while the extra traction from the all-wheel drive is a reassuring addition. 

The SQ2 isn’t the hardcore beast you might think it is – this thing would be super easy to live with daily. Yes, it has firm sports suspension, but it’s not overly hard, and that engine, which nudges almost 300 horsepower, doesn’t feel like a Rottweiler on the end of a leash. If anything, it’s a Blue Heeler that loves to run and run, but is happy to take it easy and get fat.  

The SQ2 is my pick of the bunch, and not just because it’s quick, agile, and has an intimidating growl. It’s also comfortable and luxurious, with sumptuous leather seats.  

There’s much made about how strong and rigid the 3XO’s platform is, and it’s not just for better crash protection.

Aided by a typical MacPherson-style strut front and twist-beam rear suspension set-up, Mahindra reckons it has dialled in just the right amount of dynamic finesse to make this small SUV the keen driver’s choice.

To find out if that’s the case, we spent a couple of hours behind the wheel of one at Mahindra’s vast proving ground near Chennai. A 180km/h high-speed loop. A set of chicanes. And a few rough surfaces where we could find them. Just a taster, really.

The overall impression is that nothing betrays the 3XO’s ageing platform from behind the wheel.

Torquey and smooth, the 1.2-litre three-cylinder turbo petrol engine is punchy off the line, possessing a sporty, peppy nature as well as an endearing willingness. Adding to this is the six-speed auto, as it’s also pleasingly responsive, with no lag or jolts. This is how small turbos should behave.

We managed to max it out at almost 170km/h (indicated) on the speed bowl, where it felt dead-set stable and secure. Impressive, given the 3XO’s height and ground clearance.

But the steering seems too light and a little disconnected during low-speed manoeuvres, at least for keener drivers, but once velocities climb, it seems to weigh up with sufficient heft. This is reminiscent of the way that Volkswagens used to tune its steering some 25 years ago. Maybe that’s the biggest sign of the Tivoli’s bones lurking underneath.

What this means is that the Mahindra is not the sort of SUV you buy if you absolutely relish driving, in the way the Mazda CX-3 or the very sadly-missed Ford Puma are. Hopefully, we’ll be pleasantly surprised on Australian roads.

We never got a chance to test the suspension’s ride quality, but over the couple of bumps that we did traverse, it seemed to soak them up well enough. And even though our test 3XO lacked the (optional) rear parcel shelf, road and tyre noise seemed sufficiently contained. Again, Australian roads will reveal all.

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 properly engineered and tuned.

Perhaps all those years ironing out the bugs in the preceding XUV300 and Tivoli are paying dividends for today’s buyers.

We weren’t expecting that.

No Australian or European NCAP crash-test rating exists for the 3XO.

But it does include AEB with cyclist/pedestrian detection, forward collision warning, lane keep assist, traffic sign recognition, lane departure warning, high beam assist and adaptive cruise control with Smart Pilot Assist, as well as six airbags.

Plus, ISOFIX fixings are fitted to the rear seats, along with a trio of child-seat anchorage points.

However, neither grade offers rear cross-traffic alert and a blind-spot monitor, meaning the XUV 3XO may struggle to achieve a five-star ANCAP crash-test rating at this time.

That said, it recently scored five stars in India’s new (but less-stringent) Bharat NCAP test, aided by extensive body strengthening and crash-force mitigation engineering development at Mahindra’s world-class research and development centres in India.

And there’s still more safety development underway, ahead of next year’s planned ANCAP test.

The pressure for Audi to move to a five-year warranty must be hugely intense, with Mercedes-Benz offering one, along with pretty much every other mainstream brand. But for now, Audi will only cover the Q2 for three years/unlimited kilometres.

As for servicing, Audi offers a five-year plan for the Q2 costing $2280 and covering every 12-month/15000km service over that time. For the SQ2, the cost is only a fraction higher at $2540.  

Mahindra offers a seven-year warranty with roadside assistance, and that is excellent news for most buyers. But the 150,000km cap when most other brands have unlimited mileage might fall a bit short for some prospective buyers’ requirements.

At the time of publishing, no service scheduling and capped-price servicing pricing information was available, but expect these to be announced after early July 2025.