Kia Optima vs Mahindra Xuv 3Xo

What's the difference?

If you travel long distances, want a good amount of space and don’t want to pay big bucks for a new car, then yeah, maybe there is a reason sedans like this will hang around for a while longer.

Sure, the appeal of sedans mightn’t be as strong as it once was, but models like the Kia Optima prove they still have a reason to exist.

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.

Cosmetic changes for the facelifted 2018 Kia Optima include new headlights and tail-lights with revised LED signatures (but still halogen lamps in the base model), and there are newly sculpted bumpers and new wheel designs across the two-model range. 

We had the base model Si, which doesn’t look as good as the GT model, because it has smaller wheels, the sporty body kit and misses out on the LED headlights, but the LED daytime running lights are still present.

The GT has a more aggressive look, and the side skirts, front spoiler and rear diffuser fit it better - there are dual exhausts, but not sporty quad exhaust tips.

In fact, this model is a bit like the old-man version of the Optima. No offence intended to old men, of course. The GT is just heaps sportier, and I reckon it’s considerably more attractive as a result. 

Still, the inherent sleek styling of the Optima remains - the chrome highlighting along the window line is a bit too sheeny for me, but the angles and stance of this model are quite gracious. I really dig the fact the top of the windscreen mirrors the ‘Tiger Nose’ grille shape.

I'm no exterior designer, but I liked the existing Optima more - it just looked a bit neater, even though it had a decent amount of bling with its Mercedes-like diamond-pattern grille, as opposed to the cheese grater look seen here.

There’s not quite as much bling inside the cabin of the Si, either, but it is still a well-designed space - just not as special as the premium package offering of the GT (which gets leather trim - not nappa leather, but still a quality cowhide finish, and more). Check out our interior photos to see if you agree - but size and interior dimensions of the Optima are hard to argue against.

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.

I really like the way Kia designs its cabins. Sure, there’s a lot of black in here, but there’s also a lot of thought put into the usability of the space.  

The high-mounted 7.0-inch infotainment and multimedia touch screen in the Si is simple to use, and for 2018 the Optima range gets Apple CarPlay and Android Auto - you couldn’t get that in the Optima up to this point. 

Also included are a reversing camera, USB input, Bluetooth phone and audio streaming and six speakers. The Si model misses out on sat nav - you’ll have to use the maps app on your phone. No DVD player either.

Storage is well thought out in here, with big bottle holders in the doors, a good sized pair of cup holders up front, and a nice little storage bin for your phone, wallet, keys and so on.

There’s a driver info screen with a digital speedo, and even on this base model you get a dual-zone climate control air conditioner. The updated Optima gets a new steering wheel, too.

Now, what about the back seat?

It may be considered a ‘mid-sized’ sedan, but there’s limo-like space. With the driver’s seat in my position (I’m about six feet tall) there was still heaps of rear legroom in the rear seat, with ample knee room, good foot room and decent shoulder space, too - three of me could slot across the back bench comfortably, which means kids will fit easily, too. There are three top-tether points and two ISOFIX points as well.

Kids and adults alike will be happy with the rear air vents back here, and there’s a flip down armrest with cupholders, too. Again, big bottle holders appear in the doors, and there are map pockets in the back seats.

What about boot space? With so many people choosing SUVs over sedans because they’re theoretically more practical, the Optima offers good food for thought - it has enough luggage capacity for a bunch of suitcases (510 litres VDA in size) and there’s a full-size alloy spare under the boot floor. If you need more, you could always invest in a roof rack setup?

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 Si model is powered by a 2.4-litre four-cylinder petrol engine, which has seen no changes to its specifications for this mid-life update.

Engine specs remain at 138kW of power at 6000rpm, while torque is rated at 241Nm at 4000rpm. It makes use of a six-speed automatic transmission only - there’s no manual transmission here, but you do get paddle shifters - and it's front wheel drive (the Optima isn't available with AWD, or as a 4x4, or in rear wheel drive - the latter is left to its bigger brother, the Stinger).

The GT gets a zestier drivetrain with more horsepower - it has a 2.0-litre turbo four-cylinder engine with 180kW/350Nm, which is much more desirable, but also louder than the Si’s 2.4. It also has a six-speed auto transmission, and is FWD. If you're into ratings and statistics, that 2.0-litre with a turbocharger is one of the perkier offerings for its engine size in the class.

There is no hybrid model available, despite a plug in hybrid petrol version (allowing you to run in EV mode) being sold in European markets. No diesel here, either, while other markets get a 1.7-litre turbo diesel. No LPG model here, or anywhere else, for that matter.

Towing capacity for Optima models is 750kg unbraked and 1700kg braked for the 2.4-litre, and 700kg/1400kg for the 2.0-litre turbo. Tow bar down-weight is capped at 80kg.

If you're concerned about engine problems, suspension problems, clutch and transmission issues, be sure to check out our Kia Optima problems page.

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.

Kia claims a very realistic fuel economy rating of 8.3 litres per 100 kilometres for the Si model, and we saw damn close to that consumption during our week of testing. On the highway it will sit at around 6.5L/100km, ensuring good mileage, while city driving will push usage above 12.0L/100km. Our overall average was 8.5L/100km, which is good. Use the eco mode, and you'll get a little better use.

The turbocharged GT model uses a little more, according to Kia’s 8.5L/100km combined average claim, but we guarantee you’ll actually use more than that because it’s more eager to please.

Fuel tank capacity is 70 litres - plenty of size for long distance drives.

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.

The Optima has some really good elements to the way it drives, but sadly  some less impressive bits as well.

Let’s start with the not-so-great stuff - the 2.4-litre engine in this Si model just isn’t as enjoyable as the turbo unit, and the fact that Kia still doesn’t offer a hybrid version here, despite doing so elsewhere, is a bit of a downer.

The drivetrain isn’t terrible - the six-speed auto is smart enough, and there’s usable power if you boot it. The two more sedate drive modes, 'Eco' and 'Comfort', mean the transmission will aim to save fuel and limit throttle response, with a bit more of a lazy feel to the drive experience. But in 'Sport' mode it is definitely more rewarding in terms of acceleration and performance, offering a bit more pep and urgency (we didn't do a 0-100 km/h speed test, but take our word for it); it undoubtedly at the cost of fuel consumption.

It’s just a bit of a shame Kia doesn’t offer the turbo in this spec, too. Fuel use for the Si model is better than the turbo, however, so it could be ideal for buyers who are more worried about the bottom line than design and a sportier drive.

The thing I like most about the Optima is its road manners - the steering and suspension have been tuned for local conditions, just like all Kia products, and it shows. 

The electric power steering is really well sorted, making for easy parking moves and good assuredness at higher speeds. And the turning circle is decent, too - 10.9m (so, the turning radius is 5.45m). 

Plus the ride comfort is really good. On the highway it coasts along with very little fuss, and around town it deals with lumps and bumps impressively. Sharp edges can upset things a tad, and mid-corner bumps can make it jitterbug a little bit, but not to a degree that would rule it out of contention if you want a mid-sized sedan.

It’s pretty quiet on the open road, too, and the adaptive cruise control makes long-distance driving a simple task. The GT does suffer a little bit more road noise, though.

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.

Kia remains a shining light in terms of its new-car-ownership promise, with a very strong seven-year/unlimited kilometre warranty. It makes a lot of sense if you plan to hang onto the car for a while. There's no extended warranty available, which is understandable.

That plan also includes a roadside-assist plan for the same seven-year period, provided you maintain your car with Kia Australia. So, given you get one year to start with, then you get an extra year of cover every time you go back to Kia to get your car serviced, you could end up with eight years of coverage. Nice!

Servicing is due every 12 months or 15,000km, with the first seven years covered by a capped-price-service cost / maintenance cost plan. The costs are: service one - $289; two - $466; three - $360; four - $559; five - $325; six - $599; seven - $345. That makes a total cost of $2943, which is competitive for its class. Keep your owners manual or logbook up to date, and your resale value should hold up better.

If you have concerns about common problems, issues, reliability ratings and durability, you should check out our Kia Optima problems page.

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.