What's the difference?
Behold the beautiful Cupra Leon VZe.
Like its name and multimedia screen, this enigmatic hatchback needs some decoding to make sense to Australians.
Essentially, the Leon VZe is a variation of today's eighth-generation Volkswagen Golf. Except it's built in Spain by VW Group subsidiary SEAT (remember them?), offering sleeker styling, and – in VZe guise – a plug-in hybrid electric vehicle (PHEV) powertrain.
In other words, this is similar to the intriguing Golf GTE grade not offered in Australia, but with more than a splash of Balenciaga about the way it looks, feels and drives – and with pricing to match (from $59,990, before on-road costs).
So, does the Leon VZe combine the sportiness of a hot hatch and torquey zing of an EV with the parsimony of a hybrid? Could this be the most complete small car on sale in Australia today?
Let's spill the tea to find out.
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 Cupra Leon VZe demands you give it an appropriate amount of time to get to know.
Because, as an unknown challenger brand, as a hatch in an SUV world, as a PHEV wearing an EV price tag, it is up against it. And it's too interesting a car to be summarily dismissed.
But as long as you're not expecting a pure hot-hatch-cum-ultra-economical eco warrior, the VZe is a close-enough approximation of both for it to be an intriguing and enjoyable multi-faceted small car, while also possessing a fair degree of space as well as styling flair.
If you can forgive the screwy multimedia and cope with the high pricing, there's a lot to love here.
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.
One reason why you might want a Leon over, say, one of the more common PHEV SUVs like the Mitsubishi Eclipse Cross PHEV, or even Cupra's own Formentor PHEV, is because of its pleasing, conventional five-door hatchback size and shape.
Sleek and chiselled, it is quite a looker, especially from the rear three-quarter view. And the wheels are equally pretty.
Only from front-on does the Leon seem anonymous and somewhat dated in appearance. But at least it avoids the droopy fussiness of the 308.
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.
Once standard setters, VW interiors have copped flak lately, losing the lead they once enjoyed in terms of perceived quality and functionality. A big backward step.
Within this context, the Leon's cabin is as aesthetically appealing as the exterior's, with lots of interesting angles and textures set within a broadly familiar VW-corporate multi-level dashboard design and presentation.
Most of the basics are largely fine, too. From the superbly enveloping front bucket seats and commanding driving position, to excellent ventilation and plenty of storage, there's much to commend.
The same goes for the moody, techy ambience, though it's closer to ‘chilled Audi' than ‘zesty Latin' in flavour.
Directly ahead of the driver is a 10.25-inch instrument cluster, offering several combinations of vehicle speed/operation and multimedia views.
Some of it looks good, some suffers from info-overload, but at least it's all configurable. Pick your favourite. And build quality seems up to scratch, too.
Like the Golf, there's also above-average space for longer legs and outstretched arms, while – after having to duck down a bit to get in – head and shoulder room are sufficient.
Selecting gears is a matter of manipulating a charmless stubby toggle. It works well enough, but remember when VW Group owners could interact with a Tiptronic-style lever and feel more immersed in the driving process? Memories.
That's replaced by paddle shifters, a divisive substitute that's of debatable merit in an electrified vehicle such as this, since they would serve better as regenerative braking controls.
But that's only the beginning of the confusion that ensues in the Cupra.
Reach for the 12-inch touchscreen to scroll through your many and varied media options, try and figure out the trip computer or search for an odometer reading, and any goodwill earned will be severely curtailed by just how needlessly complicated these and other once-simple tasks have become.
Plus, frustratingly, our particular car's multimedia system would just switch off mid-operation. This is not good.
We're certain time and familiarity will help make sense of working out where everything is and how to access vehicle functions located within layers of that touchscreen's myriad menus, but it is distracting and complicated.
And how is it that we could not find how to switch on nighttime illumination for the climate controls? In a week we failed to find that answer. And who ever green-lit fiddly slide controls over good old buttons? It's maddeningly frustrating.
Moving to the back seat, the Leon makes up some ground.
Two larger adults should settle into the outboard positions comfortably and snugly, aided by a pair of rear-facing air vents accompanied by a climate-control panel, two USB-C ports, a folding centre armrest with cupholders, ski-port access to the boot and useful storage via door bins and map pockets. There's even enough space for a third, smaller passenger to squeeze in between.
Further back, while the boot floor is long and flat and with a large tailgate opening to aid loading stuff in and out, the actual cargo capacity is just 270 litres, or nearly one-third down on the regular petrol Leon grades' 380L offering. This is due to the battery pack and related EV gubbins.
Speaking of which, if you need to carry charging cables there's nowhere to properly store them other than in the main boot area. And don't forget, there's no spare wheel.
At least there's a sturdy parcel shelf to keep prying eyes from seeing what you're carting around.
The VZe's interior, then, is spacious and broadly sensibly executed, but is let down – and mostly unnecessarily so – by some of the details. We strongly recommend trying before buying.
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.
There's lots to unpack here.
SEAT started in 1950 as a venture between Fiat, the Spanish government and some private banks, until VW took over in 1986 and turned it into a youth-baiting value brand. Think pre-current Kia positioning.
Meanwhile, Cupra – a portmanteau of Cup Racing – had began as SEAT's competition arm earlier that decade. And there's been a Leon (referencing both ‘lion' and a city in Spain) based on every Golf since the latter's Mk4 iteration, making this generation numero cuatro.
Halve that figure and you end up with the number of small-car PHEVs left in Australia – Cupra's and another big-cat evoking Euro, the Peugeot 308 GT Sport PHEV, costing a few grand more than the VZe from $64,990, before on-road costs.
These high prices are clearly hurdles for Australian small-car buyers. Even Mercedes-Benz recently axed the slow-selling A250e due to a lack of buyer interest. Kia dropped the Niro PHEV. And Hyundai canned the Ioniq PHEV.
So, why are these types of cars so expensive, then?
The Leon and 308 feature a turbo-petrol engine, backed up by a small motor and a battery pack that's large enough to provide a claimed 67km of electric-only range in the Cupra's case. On paper at least.
That's more than the cheaper non-plug-in hybrid alternatives like the wildly-popular Toyota Corolla and superb Honda Civic e:HEV can manage.
So, besides exclusivity and two powertrains, what does the Leon VZe give you for your circa-$65K drive-away ask?
On the safety front, you'll find the now-usual driver-assist items like autonomous emergency braking (AEB), lane-support systems and adaptive cruise control, as well as 10 airbags including a nifty front-centre item. More on this in the safety section below.
Buyers also score LED headlights, auto high beams, fog lights with cornering function, adaptive dampers, tyre-pressure monitors, a reverse camera, electronic instrumentation, three-zone climate control, variable-ratio steering, keyless entry/start, satellite navigation, wireless phone charging as well as wireless Apple CarPlay/Android Auto.
There's also rear privacy glass, four USB-C ports, sports front seats, a heated steering wheel, paddle shifters, ambient lighting, powered/heated exterior mirrors as well as 19-inch alloy wheels and a tyre repair kit. No spare wheel is offered.
The pricier 308 PHEV has most of these plus Matrix LED lighting, Nappa leather upholstery, panoramic opening sunroof, heated/massaging front seats, 360-degree surround-view vision and a digital radio, but has smaller (18-inch) alloys and no adaptive dampers.
Our test car was fitted with the 'Leather Package' that adds $2050 to the price, ushering in leather upholstery, heated front seats with driver's side power and memory, premium audio and dash-top stitching, while the sunroof costs $1800 more.
These take the VZe north of $65,000 drive-away. That's pure-EV territory. Little wonder buyers baulk at PHEV small cars in Australia.
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.
Under the Leon VZe's bonnet is a variation of the German parent brand's familiar 1395cc 1.4-litre direct-injection four-cylinder turbo-petrol engine, driving the front wheels via a six-speed dual-clutch transmission.
This Euro 6-rated unit produces 110kW of power between 5000-6000rpm and 250Nm of torque from 1550-3500rpm.
Meanwhile, the 85kW/330Nm electric motor also nestled under there is fed by a 12.8kWh Lithium-ion battery pack slung out back. The system outputs combined produce 180kW and 400Nm.
Weighing in at 1634kg (tare), the VZe's power-to-weight ratio is an impressive 110kW per tonne, explaining this portly small car's feisty 6.7 second dash in the 0-100km/h sprint. However, once the battery is depleted, that drops to a much-more mundane 67.3kW/tonne.
Based on VW's 'MQB Evo' modular transverse engine architecture, the Leon features a sports-tuned MacPherson-style strut set-up up front and a multi-link rear end, while adaptive dampers and variable-ratio electric power steering are also fitted.
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.
Cupra says the combined cycle average fuel consumption figure is a startling 1.8 litres per 100km, equating to just 40 grams per kilometre of carbon-dioxide emissions. The electricity consumption claim is 11.2kWh/100km.
Out in the real world, we averaged 5.9L/100km pump-to-pump, while the car's trip computer read 5.5L. This is a disappointment.
It must be all those extra kilos the VZe has to carry around, as most of our driving was inner-urban or casual freeway cruising. The stop/start system was working overtime once that battery depleted.
We managed fewer than 40km of pure-electric driving, against a WLTP rating of 52km (or 67km using the more-lenient NEDC number Cupra quotes), with the trip computer telling us we were averaging 5.9kWh/100km – a figure likely achieved in hybrid mode with the petrol engine chiming in.
Charging times vary, with the 12.8kWh battery needing between six and eight hours plugged in at home, or about four hours using a 7.0kW AC charger via the Type 2 connector. No DC rapid charging ability is available.
Filling up the 40L fuel tank with the required 95 RON premium unleaded petrol and giving the VZe the benefit of the doubt by using the official fuel consumption average of 1.8L/100km to find out its PHEV range, you could theoretically achieve 2220km between refills.
Or about one-third of that by our real-world experience.
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.
There aren't many PHEVs out there, and that may remain the case, for Australians at least.
But the Leon VZe is definitely one of the more enjoyable of the breed to drive and ride in, with a sporty bias that lives up to its sleek and sexy styling.
With a fully-charged battery, off-the-line acceleration is brisk, and remains rapid as the revs and speed rise. It's smooth and slick in the best VW Group manner, and is accompanied by an appropriately stirring exhaust note. Especially in racy 'Cupra' mode.
The extra torque provided by the electric motor is also felt at low speeds, with little hesitation or delay from the throttle and DCT if the driver wants to instantly plug gaps in traffic.
Expertly tuned, the Cupra ought to be commended for how well-modulated everything feels and responds.
Find a fast, curvy ribbon of road and the Leon's steering comes alive, providing plenty of feel and control, backed up by a taut and agile chassis tune. Whether in 'Comfort' or 'Sport' modes, this is an athletic little hatch.
What the VZe isn't is a hot hatch.
When pushed, even in Sport or Cupra mode, it feels far heavier and less zippy than, say, a Golf GTI, lacking the latter's lithe spirit and dynamic dexterity.
That's not to say the Cupra isn't an involving, capable and secure handler or road-holder, because in isolation this is a terrific little car to hammer along. But it doesn't excite or thrill like the best of them. For more clarity on this, please drive a Civic Type R.
The driver can switch between electric, hybrid and turbo-engine-only modes to help preserve electricity, but once the battery is spent, there isn't the same level of punchy torque available.
Better, then, to instead select Comfort mode and let the adaptive dampers isolate you from those irritating bumps; while not plush, the ride is compliant enough for the VZe to make a very good impression of a grand tourer. Road noise intrusion, too, is pleasingly muted.
We're also grateful Cupra allows the driver to mix-and-match the drive modes, so you can choose a spicy engine tune with cushy suspension if you wish.
Note, however, that our Leon insisted on defaulting to Sport mode after every start-up. Using the flummoxing touchscreen to figure out how to change that to Comfort or Normal was a challenge.
Otherwise, there's much to enjoy from behind the wheel of the VZe. Probably the most fun PHEV we've ever punted around.
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.
Tested in 2021, the Leon range achieved an ANCAP crash-test rating of five stars.
The VZe is fitted with 10 airbags – dual front, side chest, side head, driver knee and a front centre item; the latter is there to help reduce occupant-collision injury in lateral impacts.
On the driver assist tech side of things, the AEB includes pedestrian, cyclist and reversing detection, and there's 'Lane Assist', park assist, blind-spot monitor, rear cross-traffic alert with exit warning, a driver-fatigue monitor, emergency assist and tyre pressure monitors.
The AEB is operational between 5.0km/h and 250km/h. Likewise, the lane-support systems kick in between 65-250km/h.
The VZe is also fitted with electronic stability control, traction control, anti-lock brakes with brake assist and electronic brake-force distribution, adaptive cruise control, an alarm, auto on/off LED headlights with auto high beam, cornering driving lights, front and rear parking sensors, rain-sensing wipers and a rear-view camera.
Plus, the outboard rear seats include ISOFIX child restraint anchors as well as three top tethers for top straps.
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 Cupra comes with a five-year/unlimited kilometre warranty, which is standard fare nowadays, as well as five years of roadside assistance.
Service intervals are at 12 months or 15,000km.
The VZe is offered with a three-year or five-year service pack in place of capped-priced servicing. The price for three years is $990 (until December 31, 2023).
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.