What's the difference?
This idea hasn’t always worked out too well. Take a parcel-van (in this case the Ford Transit Custom) strip out the rubber matting and cargo barrier and bolt six or seven seats into what was the load area. Sure, the original vehicle to use this concept, the Volkswagen Kombi way back in the 1950s, got away with it, possibly because there wasn’t anything better around.
Ford has plenty of history with this notion, too. The first Transit of 1965 was also available as a mini-bus, but worked okay because the Transit itself was such a car-like departure from the commercial-vehicle norm.
Things didn’t go so well for Ford in the early 1980s, however, when the Econovan-badged parcel van it shared with Mazda (the E2200) was fitted with eight seats, given some fuzzy velour trim and dubbed the Spectron. And it was dreadful. In fact, so bad, that it made the contemporaneous Mitsubishi Nimbus and the even more forgettable Nissan Prairie seem like vastly superior alternatives to the job of moving people. Only because they were.
Early versions of the Spectron retained the Econovan’s crude suspension, wheezy (and fragile) little engines and even the tiny dual rear wheels that entirely deprived the vehicle of any traction. In fact, dreadful doesn’t even cover it.
So you can see why Ford might be a bit antsy about me referring to the new Tourneo (a badge that has been around in Europe for decades) as a Transit Custom with extra seats and windows. Yet that kind of sums it up (up to a point, anyway). Luckily, the Transit Custom itself is a pretty sorted thing these days, so maybe Ford has nothing to worry about. Maybe…
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.
There’s absolutely no doubt that the van-based people-mover has some distinct advantages over a three-row SUV. The rear seat is bigger, access to it is far better and there’s more luggage space even when all eight seats are occupied. But the Tourneo goes a step or two further with the sliding, swivelling seats that make it one of the most practical and flexible interiors on the market.
True, the driving experience is a bit alien at first, but it’s a case of different, rather than worse. Meantime, the ride is excellent and the performance and economy from the turbo-diesel driveline are both absolutely spot on for this vehicle’s intended purpose.
And perhaps that’s the metaphor for the whole thing: By not trying to be something it’s not, and concentrating on what it needs to do, the Tourneo emerges as a bit of a quiet achiever.
As we said earlier, this type of vehicle concept is never a sure-fire proposition. Parcel vans converted to passenger duties haven’t always worked out. This time, though, it’s different.
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.
Perhaps the biggest revision of the successful Transit Custom formula needed to make the leap from FedEx to Brady Bunch has been to the rear suspension. Where the Transit uses a leaf-sprung arrangement, the Tourneo has switched to coil rear springs. These technically offer much greater ride comfort at the expense of some load-carrying ability. Which is fine, even if your kids are the bigger variety.
The move to powered sliding side doors is a welcome one, but I found out the hard way that the doors will still open a fraction if you push the button while still travelling at low speed. Not sure why that would be, but at least the buttons in question are up front in Adult-Land, not within reach of you-know-who.
The reality is, too, that the Tourneo is destined to run with the air-con on any time you have bodes in the back. That’s because – like a lot of van conversions – there’s no opening side windows beyond the tiny, hinged windows that open an equally tiny amount. This has more to do with the Transit’s basic structure than any desire to oxygen-deprive the young `uns, but as any parent knows, a supply of fresh air on the move is sometimes the only thing between a happy day out and a clean up in Aisle five.
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.
Here’s where a vehicle like this stands or falls. Because if something like a Tourneo can’t cope with lots of people and their luggage in a single bound, then there’s really not much point to it, is there? I mean you’re not going to buy it for its sporty looks or supercar dynamics, so unless it works brilliantly as family transport, it’s kind of dead in the water. Fortunately Ford seems to have got it right. Mostly, anyway.
That starts up front where the two front seats feel like they’re metres apart. In reality, this huge gap forms a walk-through function for getting access to anything or anyone misbehaving in the second or third row of chairs. But you can’t help wondering what if… What if Ford had ditched the stubby centre console and added a third front-row seat? Wouldn’t a nine-seater be better than eight?
But the seats themselves are comfy and the high-and-mighty driving position gives plenty of vision in every direction. With one exception. And that is when you’re pulling out of a side street on to a main road and need to see what’s coming from the left. Depending on the angle you’re on, the fat frame of the pop-out side window (in the sliding door) becomes a blind spot, especially for taller drivers.
There’s nothing irretrievably wrong with the way the controls are laid out, but they will take some acclimatisation. That goes for the menu system on the touchscreen as well as the column-mounted shifter wand which is about the same size and shape (and in the same place) as a conventional indicator stalk. Tip the lever accidentally and you’ll wind up in neutral, wondering what just happened. The manual-shift mode is also fiddly to use and paddle sifters would be vastly better. Most won’t bother anyway.
The front cabin is home to a shallow lidded bin in the centre console, a deeper bin below that and a couple of charge points. There are also cup-holders in great spots up high in the corner of the dashboard, a shelf across the top of the dashboard and no less than two gloveboxes (the top one is pretty shallow) thanks to moving the passenger’s airbag into the roof lining. Both front doors also feature bins and storage nooks but there’s a fair bit of hard plastic on show, surely a legacy of the Tourneo’s parcel-van DNA.
The Tourneo’s party trick is the way both the second and third rows of seats can be slid to almost any point on a pair of tracks in the floor. The move is simply accomplished via a lever at the front or a rip-cord in the back of the seats, and all three centre-row seats can be moved individually (the third row is split 60:40). The upshot is that you can have all three rows bunched together for a large luggage space, or the rear row pushed right back to form a rear row with huge legroom. Don’t need all eight seats? How about a second row with the two outside chairs in place and the centre one folded forward to expose a work-surface with built-in cupholders.
But it gets even better, because individual seats can be removed to suit the weirdest of loads and the second-row seats even swivel 180-degrees to form a loungeroom on wheels. The kids will be begging you to take them for a drive in this thing.
The seats fold forward, but they don’t tumble. They don’t need to really, and they don’t fold into a bed either. But if you fancy camping in the Tourneo, you can remove both rows of rear seats for a huge flat floor.
The second row is home to storage bins in each sliding door (yes, a door on each side) a pop-put window that opens only about 40mm, temperature controls, air vents and reading lights. The third row, meantime, is not only easily accessed provided the second row isn’t slid all the way back (at which point you wouldn’t be using the third row anyway) but the good news is that the rearmost seat itself is basically three bucket seats with the same comfort levels (high) as the second row. There are also reading lights and a pair of phone pockets and cup-holders in the last row, too. Only the way the track system works and the shape of the seat base means that foot-room is limited to an extent.
With all three rows in place, but pushed as far forward as they can go, there’s a long load area of up to 725mm. But you can also push the second and third rows all the way back and have a cargo area 2622mm long behind the front seats. Maybe the van DNA is a good thing after all.
With all eight seats in place, there’s a minimum of 673 litres of luggage space which can be expanded all the way to a monster 4683 litres with the second and third rows removed.
There’s also a 12-volt power socket and a lighting system in the back, too, although while the side doors are automatic, the tailgate is manual. And you’ll need plenty of real estate to open it, too. Even tall folk will hit the button to open the tailgate, start the strut-assisted opening and then take a step or two back to allow the huge tailgate to rise without clobbering them. An automatic tailgate where you hit the button and run away to a safe distance would be much nicer.
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.
If ever the Average Aussie family has been in the grip of a cost-of-living crisis, it’s right now. With that in mind, we’ve chosen the entry level version of the Tourneo, the Active, for this review. At $65,990 before on-road costs, it’s not exactly cheap, but does come in a full $5000 less than the Titanium X version.
And it is pretty well equipped. That starts with 17-inch alloy wheels, 13-inch touchscreen and 12-inch driver information screen, Bluetooth, full connectivity including wireless Apple CarPlay and Android Auto, wireless charging, 10-speaker stereo, tri-zone climate control, automatic wipers, heated front windscreen, keyless entry and start, 10-way powered driver’s seat, heated and cooled front seats, and a pretty nice artificial leather covering for some of the touch-points.
In a continuation of an industry-wide trend that we wish would stop, only white is considered a standard, no-cost paint colour. Every other colour costs extra, but in 2025, should it?
If the budget will stretch the extra five grand, the Titanium X model adds body coloured bumpers, a 14-speaker stereo, a 360-degree camera system, ambient interior lighting, heated outboard seats in the second row, and extra areas of (better) artificial leather trim.
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.
Because the platform is (mostly) borrowed from the Transit Custom, you get the same driveline. That starts with a 2.0-litre turbo diesel, good for 125kW of power and a useful 390Nm of torque. It drives through a conventional eight-speed automatic transmission and then to the front wheels as a means of keeping the load floor as flat and low as possible.
Ford claims a 2500kg towing capacity with a braked trailer, but on a wet road or damp boat ramp, that’s really going to test the limits of the front wheel’s grip which can be overcome even in the dry if you’re too hasty with the throttle.
The biggest engineering change in the move from Transit Custom to Tourneo has been the switch from leaf springs on the former to coil springs and an independent suspension on the latter. This is all in the name of ride quality and recognises the fact that the Transit will often be called on to cart heavier loads than eight humans.
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.
Ford quotes an official combined fuel consumption figure of 7.4 litres for the Tourneo. Over a few days of running in a pretty broad mix of urban and country work, we saw an average of 8.6 litres per 100km which is still pretty good for a vehicle of this size.
With the standard 70-litre fuel tank, that gives the Tourneo a theoretical combined range of around 900km between fills, but the real-world number says closer to 800km is more realistic.
Don’t forget, either, that running costs will be a little higher than some diesels, as the Tourneo requires AdBlue at regular intervals, in line with its Euro 6 emissions levels.
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.
If you haven’t driven a one-box van for a decade or more, you’re in for a treat. Just like the Transit Custom on which this car is based, the Tourneo represents a different experience to that of a conventional car or SUV, but one that is not without merit.
For a start, you sit very high which means a great view out across the traffic. And while the driving position is a little less laid-back than a modern car, once you get used to the almost square steering wheel, neither is it the dreaded sit-up-and-beg of older van designs.
The four-cylinder engine doesn’t make the Tourneo a fast vehicle, but it does give it lots of flexibility thanks to all that turbo-torque being available from just off idle. The eight-speed transmission helps, too, but the real surprise is just how quiet the Tourneo is when on a cruising setting. In fact, it’s almost uncanny how such a big, empty metal box could be so silent, but beyond a little tyre noise on coarse surfaces, the Ford pulls it off. As a result, it’s very relaxed and effortless feeling at freeway speeds.
The other surprise is how good the ride quality is. By swapping the cargo van’s leaf rear springs for coils, the Tourneo suddenly displays a very good match between the front and rear axles in terms of how they work to absorb bumps. You do still get some of the front-seat sensation that you’re sitting over the front axle, but it’s not terrible and the reality is that you simply sitting closer to the axle, not right over it.
For many drivers perhaps the over-riding impression will be of the vehicle’s external size. And, yes, it’s a long and wide piece of equipment, but at least the boxy shape means the corners are easy to place and the huge glass area and driver aids like parking sensors and blind-spot warnings help a lot in the daily cut and thrust.
Things are also improved by the fabulously small turning circle of 10.9m kerb-to-kerb (courtesy of the Transit’s role as an inner-city delivery van) that gives an agility the looks don’t suggest. But there’s a sense that the Tourneo is a little wider in the rear track than the front, as you’ll sometimes find the inside rear tyre finding the lips of roundabouts and suburban gutters.
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.
Keeping the whole family safe is the name of the game here, so Ford has extended things like side-curtain airbags right through to the third row, thereby covering every outboard seating position. In fact, there are nine airbags all up, including a centre airbag between the front seat occupants.
Driver assistance programs include forward collision warning which incorporates the autonomous emergency braking (AEB) function, blind-spot monitoring and assistance, rear cross-traffic braking, active cruise-control, tyre pressure monitoring, lane-keeping assistance, front and rear parking sensors and traffic sign recognition.
The AEB works at any speed above 5km/h, and the pre-collision assist at speeds above 30km/h.
Both the second and third rows of seats feature a pair of ISOFIX child-restraint mounting points (for a total of four) while there are five top-tether restraint mounting points as well.
The Tourneo hasn’t been locally crash tested as per the safety-stars system, but the Transit Custom has been assessed overseas as part of a commercial van safety comparison which graded the vehicle at 96 per cent, the highest rating ever achieved by a van undertaking the test program in question.
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.
Ford offers its standard five-year/unlimited kilometre warranty on the Tourneo. Five years is fair enough, but can’t match the seven years or even more that some of the competition offer. It‘s worth noting, however, that the warranty does match many of the makes and models that will be the Ford’s natural enemies.
Service intervals are 12 months or a very long 30,000km, but it’s unlikely many families will clock up 30,000km in a 12-month period, anyway. There’s no word on capped-price servicing yet, but the mechanically similar Transit Custom has a service plan that limits the cost of each of the first four services to around $500.
The biggest additional running cost for the Tourneo will be the AdBlue additive to control emissions. How frequently you need to top up will be determined by what type of driving you do.
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.