Audi SQ8 vs Mahindra Xuv 3Xo

What's the difference?

The Audi SQ8 isn’t your typical performance SUV. It’s more refined and less flashy. The tech can be more complicated than it needs to be and if you’re wanting that V8 soundscape, you won’t find it here.

However, the handling and on road experience are superb plus you can comfortably haul the family around and look good doing it.

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 SQ8 is a gorgeous coupe-style SUV that looks purposeful and poised with its balanced proportions and wide stance. It’s stands apart from its siblings thanks to the S-styled nose treatment and our test model's black accent package makes the honeycomb grille look even sportier. 

The update sees new air intake vents at the front, matrix LED headlights and new chrome exhaust tailpipes.

The upgraded 23-inch alloys with red calipers behind them hint at what’s under the bonnet, as does the Sakhir (sack-heer) Gold paintwork which is aptly named after the one-off Grand Prix race circuit.

The interior looks luxuriously appointed with the black Valcona leather upholstery and the dash is headlined by three high-end technology screens. The SQ8 also gets sport seats featuring a quilted design and 'S' badging but there’s not much else separating it from its siblings.

Audi fans will love the the SQ8's more understated interior but newcomers might be surprised it's not as flashy as some of its rivals.

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 upper large SUV tag certainly makes sense when it comes to cabin space because there's a lot of it. Both rows enjoy ample head- and legroom and access is great thanks to wide door apertures and high ground clearance.

Comfort is high with well-padded seats and thanks to the Sensory Package all but the middle back seater get some luxury extras.

The centre rear position has compromised legroom courtesy of the transmission tunnel, so it's best for a kid. However, the front seats take the cake with their massage, heat and cooling functions and adjustable supports.

Amenities are great throughout the car and the extendable sun visors, rear electric sunshades, soft-close doors and four-zone climate control clinch the practicality deal.

Individual storage is a bit sparse up front with two cupholders, a drink bottle holder in each door and a shallow middle console that realistically only fits a phone.

The glove box is a great size. I can fit my handbag in it, but there are not a lot of areas to pop your smaller items in.

Individual storage is a bit better in the rear as you get two big map pockets, a drink bottle holder in each door, plus two cupholders in the fold-down armrest - so it feels like you have more places for your bits and pieces.

Technology looks amazing but overwhelming to use until you wrap your head around it all. The haptic feedback also gets tired fast. The built-in satellite navigation is super simple while the head-up display and digital instrument cluster feature pull through directions, which is handy.

Charging options are good with each row getting two USB-C ports and a 12-volt socket but the front also enjoys a wireless charging pad. The pad is slow to charge, though, and left my iPhone feeling super hot whenever it was used.

The boot is a good size at 605L and easy to access, too. The sloping roof means larger items have to sit flush with the seats but you shouldn’t have to worry for road trips. 

The back seat has a 40/20/40 split which opens up storage options and this model has a powered tailgate.

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.

Our test vehicle has a 4.0-litre, twin-turbo petrol V8 engine that produces 373kW and 770Nm. That means it sits in the middle of its rivals in terms of outputs with the Mercedes being top-dog with its 450kW/850Nm combo.

Still... the SQ8 is no dainty flower when it comes to power delivery and has an impressive 0-100km/h sprint time of just 4.1 seconds. 

The SQ8 is a full-time all-wheel drive with an eight-speed auto transmission and the whole engine combo delivers a powerful but elegant on-road experience.

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.

The official combined (urban/extra-urban) fuel cycle figure is 11.9L/100km, which is lower than its rivals.

My real world usage sits at 12.3L/100km after a mix of open-road and urban driving.

This result is decent for a performance SUV but expect it to be thirsty in an urban environment as the on-board gauge hit the mid-20s in the city.

Based on the large 85L fuel tank theoretical driving range is 714km and around 690 using our real-world result. Respectable for a performance SUV but not as good as some family SUVs.

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.

The SQ8 delivers on power because it’s effortless to get up to speed and the pick up is super responsive when the start/stop function is turned off (otherwise there can be some lag).

The engine doesn’t sound like a big and grumbly V8, though. There are some growls but it’s mainly when you turn the engine on and not to be obnoxious about it but if you're in a V8, you want to hear it as it’s part of the fun of having a big bruiser engine like this!

What doesn’t help the V8 soundscape is the fact the cabin sounds like a noise-cancelling headphone inside. There is a small hum from road noise but it’s pretty darn quiet. Almost EV quiet at times but that means the driving experience leans more towards refined and elegant rather than sporty and fun. 

The SQ8's handling is great - super direct steering, stable in corners and well-rounded passenger comfort when it comes to suspension.

You still get road feedback, which I like as a driver, but it’s not too stiff thanks to the adaptive suspension.

The SQ8 is a large car but you wouldn’t know it when it comes to parking. The 360-degree view camera is clear and the dynamic guidelines help you to position this big unit even the smallest of car parks.

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 SQ8 comes with a five-year/unlimited km warranty, which is a normal term for the class.

It also comes with capped servicing for five years or up to 75,000km and averages $920 per service, which is very good for the segment.

Servicing intervals are reasonable at every 12-months or 15,000km, whichever occurs first.

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.