BMW 218i vs Mahindra XUV3XO

What's the difference?

The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.

More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.

A true BMW in name and nature, then..

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

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.

BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.

But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.

That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.

Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.

There’s a higher level of newness to be found inside.

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.

During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.

Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.

The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.

The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.

Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.

Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.

Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.

Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.

But, you know what is good enough? The engines BMW builds, that’s what.

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.

Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.

The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).

With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.

Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.

Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.

As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.

If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.

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.

OK, so is the 2 Series Gran Coupe cheap to run?

BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.

Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.

Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.

Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.

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.

Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.

And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.

Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.

For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.

Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.

Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.

To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.

What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.

It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.

As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.

So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.

For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.

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.

Here, however, is where BMW can do a bit better.

While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.

Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.

BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.

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.