BMW Z4 vs Mahindra XUV 3XO

What's the difference?

The Z4 didn’t make me feel like Peirce Brosnan’s 007. It’s way too serious – a proper gritty reboot. Maybe it’s meant for Daniel Craig. Either way, its brave design makes it one of the best-looking BMWs of recent memory, and it’s a tech- and comfort-fest that the Bavarian automaker should be proud of. I just wish it was a smidge more fun behind the wheel.

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 Z4 is a sight to behold. It’s brave, especially for a BMW, it even betrays the brand’s strongest styling pillars, making its own way with its more horizontal grille design, flat body and curved out rear.

It’s more than that, though. In black, this car looks sinister, brooding. The more you look at it, the more you notice tiny details - the scooped-out sides, or the way the entire rear seems to flick up into the integrated spoiler. I couldn’t get enough of staring at it – it manages to look even better with the roof down.

That’s probably when it hit me. To my eyes, at least, this is the most stunning BMW in years. Sure, the X7 is a sight to behold due to its sheer dimensions and borderline offensive grille, but the Z4 is the opposite. It’s subtle, it hides its details away in its silhouette.

It’s designer, Calvin Luk (an Australian no less), was inspired at least in part by the Z8 – another Brosnan bond car – and you can see the Fisker design reflected in the Z4’s low, flat grille and almost bulbous rear.

Inside, sadly, the Z4’s strong design doesn’t quite play out. There’s no wily Fisker touches here, just a standard set of BMW switchgear. While it all works well, it just dumbs down the Z4’s character.

The big, chunky steering wheel in particular is a let-down. It’s the same wheel that sits in the brand’s X5 SUV, and it feels right there, but not here in a convertible where you’re so close to the ground. A smaller wheel would not only suit this car better, it would make it feel just a smidge more alive. I miss the three-spoke M sport wheel from previous-generation BMW cars.

I do like the dash, which is seemly carved from rhomboid shapes - a theme that rolls into the doors, screens, and vents elegantly. I’m normally not a fan of gloss plastics and chrome touches, but in the Z4 they’re all tastefully applied.

The seats, too, are lovely. I’m not sure about the contrast bright-red leather our car came with, but they’re nice and close to the ground and have excellent trim that you seem to sink into just enough to be comfortable and sporty all at once.

It’s a slick place to be, I just wish it felt less like you were at the helm of an SUV and more like you were driving something that looks this damn good.

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 Z4 is a convertible, so it’s naturally compromised on space. As far as convertibles go though, you’ll be hard pressed to find one you can fit more stuff into.

The Z4 is wide - the same width, in fact, as a 5 Series - and this carries into the cabin. There are only two seats, but those seats are wide, and occupants will find themselves with luxurious amounts of airspace for their arms, as well as excellent leather-trimmed and padded surfaces for landing elbows on.

Legroom is also great, as the seats have a surprising amount of rail-travel on them, so that even taller folk won’t struggle to fit their limbs in.

A genuinely impressive characteristic of the Z4 is much head room there it is. Despite its low-slung looks from the outside, the roof towers over my 182cm tall head when I’m inside, so this isn’t one of those convertibles that feels like braking too hard might simply decapitate those above six-foot tall.

In terms of storage areas you get some long but shallow trenches in the doors, a bay with connection ports and a Qi wireless charging pad under the air-conditioning controls, a glovebox (hey, not all convertibles have them) and a trick centre console that houses two deep cupholders inside.

There’s also a netted shelf behind the seats that could fit small bags, and given the length of the cabin, you could even fit laptops and the like behind the seats provided you haven’t used the full extent of the seat’s rearward movement.

The boot is deep, wide and long for a drop-top, and offers a total of 281-litres which is more than some popular hatchbacks. It even offers tie-down points and netting either side. To top it off, the fabric roof folds away into its own compartment, so the boot space is unaffected if you choose to drop the lid.

For a convertible – the Z4 is a practicality wizard.

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.

Welcome to the age of ridiculously powered four-cylinder turbo engines. Despite a capacity of just 2.0-litres, the engine in the Z4 30i produces a whopping 190kW/400Nm.

That’s probably enough for a car this size. I’m keen to drive the six-cylinder, but surprisingly it seems to offer diminishing returns for extra cylinders offering a 60kW/100Nm power boost for an extra $20,000. Perhaps a six-cylinder is the way to go in a BMW, and given this car’s other seriously sporty attributes, it might be the only way to make it a bit more… fun. More on that in the driving section.

All Z4s are rear-wheel drive, using an eight-speed torque converter automatic. Sorry, no option for a manual this time around.

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.

It’s claimed that the Z4 will drink just 6.5 litres per 100 kilometres on the official combined cycle test, but I found that sticking my foot in occasionally resulted in a slightly more realistic sounding figure of 8.4L/100km.

That’s still a great fuel consumption number for a car like this, and perhaps one of the strongest benefits of having just four cylinders.

A discerning vehicle, the Z4 will drink nothing less than the best-quality 98RON unleaded to fill its 52-litre tank.

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.

A car that looks this good better live up to the promise behind the wheel, right?

For the most part, the 30i does, but it’s a victim of its own performance credentials and luxuriousness.

See, a drop-top should be fun-packed, you should feel close to the road, connected. Sadly, a combination Z4’s excellent suspension and not-so-excellent SUV-like interior separates you too much from the surface below.

An advantage, of course, is the refinement on offer. The Z4 is easily one of the quietest, most refined convertibles I’ve ever driven, but it’s a little too insulated.

I can’t help but feel like it’s all business and no pleasure. It feels a little more like I should be cruising to work on the autobahn and a little less like I should be flinging it around corners on a tight B-road.

It feels almost wrong to drive it in a T-shirt. It’s serious and doesn’t want you to mess around, it wants you to wear a suit and tie.

This grand-tourer style feel is one that will keep a lot of buyers in the premium space happy, but I’m of the opinion that BMW will have that segment well and truly covered by the new 8 Series. If the budget allows.

Regardless, the 30i’s four-cyl engine feels like any six-cylinder would have a few years ago. It’s got a surge to it in the straights that’s quite satisfying, and it responds via the exhaust with an angry tone that makes it feel a little more alive, especially with the roof down.

This feeling was all helped along by our car’s M active differential which simply won’t let the fat tyres at the rear slide unless you’ve got high-speeds and loads of tarmac to play with – for better or worse.

The Z4 also has ‘variable sport steering’ which reacts to the car’s speed and position of the wheels to adjust the input ratio. It’s good when you’re at speed, but the weight and response of the steering can make the Z4 feel bigger than it actually is at lower speeds. 

The suspension is firm, and can be a little bouncy over rough surfaces, but seems well suited to the Z4’s chassis.

Other than those notable characteristics you’ll find that the Z4 is wonderfully tuned in terms of its inputs, everything is slick and smooth, suited perfectly for long meandering drives.

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.

If recent quotes are anything to go by BMW is set to stick by its lacklustre three-year unlimited kilometre warranty, as it says its customers simply aren’t interested in five years (or longer) when it comes to warranty coverage.

It’s a shame, as even Volkswagen has upped its warranty to five years, and Mercedes has considered a 10-year coverage plan in the past.

In terms of servicing, there are two fixed-price plans available – the suspiciously cheap ‘Basic’ plan which comes at a cost of $1373 for five years (or $274.60 per year) and the more realistic-sounding ‘Plus’ which costs $3934 over five years (or $786.80 per year).

Like every other BMW, the Z4’s computer tells you when its service time: how often it needs maintenance will depend on how often – and how hard – you drive it.

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.