Haval H2 vs Mahindra Xuv 3Xo

What's the difference?

How you define value will determine whether the Haval H2 City is the right small SUV for you. In terms of metal for money it delivers heaps of space, a reasonable standard features list and adequate safety. But it's let down by mediocre performance, sub-par dynamics and a surprising thirst for (premium) unleaded. Brand Finance may rank Haval high on the power index, but the product needs to climb a few rungs higher before that potential's realised.

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.

Inoffensive but uninspiring is a blunt yet fair summation of the Haval H2 City's exterior design, especially when you think about rivals like the dramatic Toyota C-HR, edgy Hyundai Kona, or funky Mitsubishi Eclipse Cross.

The nose is dominated by a huge, slatted and chromed grille with bright metal mesh behind it, and vaguely Audi-of-10-years-ago shaped headlights either side.

The lighting treatment is elaborate with projector halogen main beams and reflector halogen high-beam units surrounded by a dotted-line string of LEDs looking uncomfortably like aftermarket inserts available via your online auction site of choice.

Standard fog-lights are recessed into a blacked-out area under the bumper, with another line of LEDs, functioning as DRLs, below that. And just to complicate matters, the upper LEDs only illuminate with the headlights, while the lower units come to life when the headlights are off.

A sharp character line runs along the H2's flanks from the trailing edge of the headlights to the tail, with an equally distinct swage line running from front to back, narrowing the car's mid-section and accentuating the bulge of its wheelarches, filled adequately by standard 18-inch multi-spoke alloy rims.

The rear is similarly reserved, the only hint of flash confined to a roof-top spoiler, cool typeface chosen for the prominent Haval badging across the hatch door, and a diffuser with chrome exhaust tips poking through either side.

Inside, the look and feel is early noughties plain, The dashtop is a nice soft-touch material, but there are lots of buttons and old-school analogue instruments combined with a media and ventilation interface that might have been acceptable on a mainstream model 20 years ago.

Don't even think about Android Auto or Apple CarPlay. The tiny LCD screen (sitting below a CD slot) wins the smallest, most basic graphics award. A miniscule scale reflecting the manual air-con's temperature setting is a particular low-light.

A small 3.5-inch screen between the tacho and speedometer displays fuel economy and distance information, but frustratingly no digital speed read-out. Standard cloth trim has a distinctly synthetic but tough feel, while the polyurethane plastic steering wheel is another throwback.

Sure, we're at the budget end of the market here, but be prepared for low-tech design combined with cheap and cheerful execution.

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.

At 4.3m long, 1.8m wide, and just under 1.7m high the Haval H2 is a big small SUV, and there's plenty of room inside.

Up front, storage runs to a bin (with sliding top) between the seats, two large cupholders in the centre console and a lidded oddments tray in front of the gearshift, as well as a sunglass holder, average-sized glove box and door bins with room for bottles. You'll notice the pennies saved with non-illumination of the sunvisor vanity mirrors.

Rear seat passengers pick up generous head, leg, and importantly, shoulder room. Three large adults across the back will be tight but do-able for short trips. Kids and young teenagers, no problem.

A centre fold-down armrest houses neatly integrated dual-cupholders, there are bins with space for bottles in each door and map pockets on the front seat backs. No adjustable air vents for backseaters, though.

Connectivity and power runs to two 12-volt outlets, a USB-A port and an 'aux-in' jack, all in the front.

Although a strong seller in the small SUV segment, the Mazda3's Achilles heel is its modest 264-litre boot, and while the H2 exceeds that number, it's not by much.

The Haval's 300-litre capacity is way less than the Honda HR-V (437 litres), Toyota C-HR (377 litres) and Hyundai Kona (361 litres). But it's enough to swallow the bulky CarsGuide pram or three-piece hard suitcase set (35, 68 and 105 litres), and (as with all contenders in the segment) a 60/40 split-fold rear seat increases flexibility and volume.

If you're into towing, the H2's limited to 750kg for an un-braked trailer and 1200kg braked, and the spare tyre is a full-size (18-inch) steel rim shod with narrower space-saving (155/85) rubber.

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 Haval H2 City (as tested) is powered by a 1.5-litre direct-injection, turbo-petrol, four-cylinder engine driving the front wheels through a six-speed automatic transmission.

Peak power (110kW) arrives at 5600rpm, with maximum torque (210Nm) delivered at 2200rpm.

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.

Claimed fuel economy for the combined (ADR 81/02 - urban, extra-urban) cycle is 9.0L/100km, the 1.5-litre turbo four emitting 208g/km of CO2 in the process.

Not exactly outstanding, and over roughly 250km of city, suburban and freeway running we recorded 10.8L/100km (at the bowser).

Another rude surprise is the fact the H2 requires 95 RON premium unleaded fuel, of which you'll need 55 litres to fill the 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.

Cold weather and internal-combustion engines are usually firm friends. Lower ambient temperature means denser air entering the cylinder (even under the extra pressure of a turbo), and as long as more fuel arrives at the same time, you'll have a bigger bang and more power.

But the H2 City's 1.5-litre four must have missed the memo, because cool morning start-ups result in a distinct reluctance to proceed at normal pace.

Sure, there's forward motion, but pinning the right-hand pedal to the floor won't shift the speedo needle much above a brisk walking pace. Unsettling.

Even after a few minutes, when things settle into a more predictable pattern, this Haval hovers at the sluggish end of the performance spectrum.

Not that any of the compact SUVs it competes with are rocketships, but you can generally expect a turbo-petrol engine to serve up a decent dose of low-down grunt.

However, with a maximum output of 210Nm delivered at a relatively high 2200rpm the 1.5-tonne H2 won't be threatening the land speed record anytime soon.

Suspension is strut front, multi-link rear, with the H2 City riding on (235/55x18) Kumho Solus KL21 rubber, and on typically pock-marked and bumpy urban roads ride quality could be better.

The steering displays some nervousness on centre, which combines with a lack of road feel and a mildly disconcerting top-heavy sensation in cornering. It's not that the car lurches or suffers from too much body roll; more that something isn't quite right in the front-end geometry.

On the upside, although firm, the front seats are comfortable, the exterior mirrors are nice and big, overall noise levels are moderate, and the brakes (vented disc front / solid disc rear) are reassuringly progressive.

On the downside, the media system (such as it is) is woeful. Plug your mobile device (mine's an iPhone 7) into the car's single USB port and you'll be met by a 'Loading-USB error' message, the heating and ventilation read-outs on the letterbox slot screen are a joke, and to top it all, select reverse and the audio cuts out altogether.

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.

Haval covers all new cars it sells in Australia with a seven year/unlimited km warranty with 24-hour roadside assistance provided for five years/100,000km.

That's a strong statement from the brand, and well ahead of the major players in the mainstream market.

Service is recommended every 12 months/10,000km, and no capped-price servicing program is currently in place.

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.