Ford Transit Custom vs Mahindra Xuv 3Xo

What's the difference?

There’s a lot to like here as it provides spacious and comfortable seating for up to five tall adults combined with a huge load volume, one-tonne-plus payload rating, 2500kg towing capacity, peerless safety and an appealing price. It sets a high benchmark for buyers wanting work-and-play practicality and with its sporty good looks and energetic performance is worthy of consideration as a genuine alternative to a conventional van, ute or US pick-up.

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.

Our test vehicle rides on the LWB Transit Custom’s 3500mm wheelbase and its external dimensions of 5450mm length, 1999mm width and a height of 1985mm, which means it can comfortably access underground or multi-storey car parks. A 12.1-metre turning circle is more compact than 1500-class US pick-ups and closer to Ranger/HiLux-sized utes.

The front-wheel drive chassis platform has smooth-riding four-coil suspension with MacPherson struts up front and an independent rear. Steering is rack and pinion and there’s a quartet of powerful disc brakes.

It’s arguably the best-looking mid-sized van on the market with aggressive frontal styling, wedge-shaped side contours and protruding wheel arches that shroud its alloy wheels.

The interior has a spacious and airy feel, with a stylish mix of contrasting two-tone grey surfaces throughout. This is enhanced with bright blue highlights courtesy of the dual ‘racing’ stripe pattern on the fabric seat facings, which provides visual cohesion with the external stripes.

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.

With its 2167kg kerb weight and 3225kg GVM, our test vehicle has a big 1058kg payload rating, so it’s a genuine ‘one tonner’ designed to carry a full crew and heaps of cargo. Up to 155kg of that can be carried on the cleverly-designed trio of roof racks, which lie flat when not in use but in seconds can be rotated to an upright position and locked in place.

It’s also rated to tow up to 2500kg of braked trailer and with its sizeable 5725kg GCM (or how much weight it can legally carry and tow at the same time) it can legally carry its maximum payload while towing its maximum trailer weight, which is impressive for a 2.0-litre powertrain.

Standard cargo bay access is through rear barn-doors, but an optional swing-up tailgate is available. These doors open to 180 degrees to optimise loading access and the hinges have enough resistance to keep them open in light winds.

The cargo bay, which is separated from the cabin by a moulded composite bulkhead, has a huge load volume of 4.3 cubic metres which is about 70 per cent of that available in conventional two-seater vans.

Its 2004mm of load-floor length and 1392mm between the wheel-housings also allows it to carry either a standard Aussie pallet or Euro pallet if required, secured by a choice of six load-anchorage points.

The load floor is protected by a composite liner, the walls and doors are neatly lined to mid-height and bright LEDs on the roof provide ample illumination.

There’s generous room not only for the driver and front passenger but also those seated behind. The large sliding doors and assist handles on each side provide easy access to the rear bench seat where even tall people are treated to ample kneeroom, given I’m 186cm and have more than 100mm of knee clearance from the driver’s seat set in my position.

There’s also ample shoulder and headroom, combined with a carpeted and flat floor which with no transmission tunnel provides welcome floor space for those seated in the centre. It feels much like the rear seat of a US pick-up.

Front cabin storage includes a bottle-holder and bin in each front door, plus bottle/cupholders on each side of the dash, a large open storage area in the dash-pad, upper and lower lidded glove boxes and two more bottle/cupholders in the centre console.

Rear passengers also get a bottle-holder and bin in each sliding door, plus there’s considerable storage space under the bench seat with a removable frame at the front to retain items.

The only missing item that could make this well-designed cabin even better would be an assist-handle on the left-side A-pillar to help front passengers of shorter stature to climb aboard. Yes, we did have complaints.

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.

The 'EcoBlue' 2.0-litre four-cylinder turbo-diesel engine produces 125kW of power at 3500rpm with peak torque of 390Nm tapped between 1750-2500rpm. It uses AdBlue to minimise emissions.

The eight-speed torque converter automatic provides the option of sequential manual-shifting using the column-mounted stalk, which can be preferable in some situations when hauling heavy loads. It also offers five drive modes comprising 'Normal' (default), 'Eco', 'Sport', 'Slippery' and 'Tow/Haul'.

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 claims official combined average consumption of 8.0L/100km and the dash display was showing 8.7 when we stopped to refuel at the completion of our 274km test, which comprised the usual mix of suburban, city and highway driving of which about one third was hauling a heavy payload.

Our own numbers calculated from actual fuel bowser and tripmeter readings were close to these figures at 9.1, which is still excellent sub-10L/100km economy for a vehicle weighing more than two tonnes dealing with a variety of loads and roads.

Therefore, based on our consumption figure, it should deliver a real-world driving range of around 770km from its 70-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.

It’s spacious and comfortable with a car-like driving position, large left footrest and plenty of steering wheel/seat adjustability including 10-way power adjustment for the driver's seat including lumbar support.

This van is particularly well suited to long-distance driving, given the fold-down inboard and outboard armrests for the driver and front passenger seats. This ‘captain’s chair’ design provides ideal elbow support to minimise neck and shoulder strain during long days on the road.

The 2.0-litre turbo-diesel’s ample 390Nm of torque ensures spirited response regardless of drive mode, with the well-calibrated auto ensuring most driving occurs within the engine’s peak torque band which is right where you want it.

Ride quality and handling are excellent and remain consistent regardless of payloads. Although the driver’s rear view is minimal through the small bulkhead window, the large truck-style door mirrors combined with a reversing camera and active driver aids like blind-spot monitoring, rear cross-traffic alert and parking sensors make it easy to live with in busy urban settings.

It’s also an effortless highway cruiser, with the engine only needing around 2000rpm to maintain 110km/h which is comfortably within its peak torque band. Most noise at these speeds, which is far from intrusive, comes from the tyres as engine and wind noise are negligible.

To test its GVM rating, we loaded 650kg into the cargo bay which combined with our two-man crew equalled a total payload of 830kg. Although sizeable, that was still more than 200kg shy of its legal limit.

The coil-spring rear suspension compressed 55mm under this loading, with long cone-shaped jounce-rubbers mounted on the chassis rails above being pressed into service to provide a second stage of weight support. This design is very effective in providing a smooth ride free of any jarring thuds over bumps when heavily loaded.

It made light work of our 13 per cent gradient, 2.0km-long set climb at 60km/h, easily hauling this heavy payload to the summit. Engine-braking on the way down, in a manually-selected second gear, was equally competent as no pedal-braking was required to stay below the 60km/h posted speed limit during this descent.

Our only driving criticism was an annoying rattle coming from the window in the right-side sliding-door (close to the driver's ear) and another emanating from the cargo bay over larger bumps.

Behind the wheel, the Mahindra XUV 3XO feels refreshingly old-school.

The 1.2-litre turbocharged petrol engine does seem like it would be underpowered, but in practice it’s completely adequate. Peak torque comes on tap from 1500rpm so it doesn’t have to work too hard at all.

It’s fun hearing the noise the three-banger makes when under the boil. You don’t hear it much though because the revs are typically kept down low to minimise fuel consumption.

The key reason why this car feels old-school is the six-speed torque-converter automatic transmission. It’s nice to not drive an affordable everyday car that doesn’t have a continuously variable transmission (CVT) or dual-clutch automatic transmission as these can suck the life out of a car or be jerky.

The gear shifts in the Mahindra are sometimes docile, but are smooth and measured. It just operates like a regular car that doesn’t require you to rewire your brain to drive.

There are three drive modes to choose from. They’re hilariously called ‘Zip’, ‘Zap’ and ‘Zoom’. These correspond to Eco, Normal and Sport, respectively.

While I did eventually get used to driving in the ‘Zap’ mode, it felt a little snoozy at points, taking a beat or two to get the car accelerating with traffic. You can sidestep this with ‘Zoom’ which feels much more lively. If you activate cruise control or restart the car, though, it defaults back to ‘Zap’.

The XUV 3XO makes the most sense in the city where you’re able to use its tiny exterior dimensions to navigate tight urban carparks and narrow laneways with ease.

It almost became a challenge for myself to find the smallest parking spot I could slot this car into. As standard on this AX7L there are front and rear parking sensors, as well as a surround-view camera system.

Where this car is let down, however, is the steering feel. It’s incredibly light at low speeds and then as the speed builds it gets very heavy. So much so it feels like I’m getting an arm workout.

Unlike some of its rivals, there is still a semblance of feel through the steering wheel, but this drastic change from light to heavy steering weight is too stark. Somewhere in the middle would be nice please.

Something Mahindra is very good at is developing a comfortable suspension tune and this car is no different. It can tackle pimply urban road imperfections and speed bumps with no problems whatsoever.

Out on the open road this car surprised me. It feels like a much larger car than it actually is and doesn’t get blown around in the lane like small cars can.

The three-cylinder turbo-petrol engine remains confident at higher speeds, though if you frequently travel up hills the fuel consumption will skyrocket. There’s also a bit of road noise, which is to be expected when a car is this small.

For the most part the suspension does a fantastic job at rounding out road imperfections, but bigger bumps or potholes can unsettle the car. It’s not helped by the larger 17-inch alloy wheels.

Out in the twisties this tiny SUV is fairly agile. It’s not the sportiest thing out there by a vast degree, but it remains planted and solid even when pushed into harder corners.

Lastly, another point that makes this car feel old-school is the lack of obtrusive bings and bongs from the safety systems.

Sure the parking sensors can be a little over-the-top and the traffic sign recognition takes over the entire digital instrument cluster when it picks up a new speed limit, but having no driver attention monitor and intelligent speed limit assist is refreshing.

It’s not all perfect however as the lane-keep assist is too hands on for my liking. It activates from 60km/h and is quite overt in how it directs the car through bends.

The Mahindra XUV 3XO hasn’t been crash-tested by ANCAP just yet.

It was, however, tested by India’s less stringent Bharat NCAP testing authority in 2024 and received a five-star rating.

Standard safety equipment includes autonomous emergency braking (AEB), lane departure warning, lane-keep assist, lane centring, adaptive cruise control, traffic sign recognition, rear parking sensors and a reversing camera.

Stepping up to the AX7L gets you a surround-view camera, blind-spot view camera, and front parking sensors.

Notably absent from the entire range is rear cross-traffic alert, as well as a traditional blind-spot monitor that alerts you when a car is in your blind-spot.

There are two ISOFIX points on the two outboard rear seats, as well as three top-tether child seat anchorages across the rear bench.

The vehicle is covered by a five year/unlimited km warranty.

Scheduled servicing is every 12 months/30,000km whichever occurs first. Capped-price servicing for the first four scheduled services up to four years/120,000km totals $1996 or $499 per service.

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.