Lexus CT200h vs Mahindra Xuv 3Xo

What's the difference?

The cheapest Lexus of them all isn’t chasing badge snobs with the CT200h as blatantly as Mercedes-Benz, BMW and Audi do with their entry level cars… but it’s perhaps not quite the Lexus you’d expect it to be.

It has a lovely front-of-cabin, for example, but there’s a lot of last-gen Prius in plain sight in the rear of the cabin.

The hybrid powertrain, too, is noble in concept, but the day-to-day reality is that it’s not as nice to drive, especially town to town, as a regular petrol-powered car of similar size.

The foot brake, silly multimedia joystick and odd gearshifter also spoilt the party a bit.

Empty nesters who are looking for a nice city runaround with a tinge of greenwash about it will love it… and if the current Prius is anything to go by, the next CT will be a very good thing indeed.

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.

There are some light external revisions for the latest update of the compact Lexus CT200h. New grey 17-inch alloys are unique to the Sport Luxury, along with a black roof treatment, new L-shaped LED driving lamps that match new-design LED tail-lamps, while Lexus designers have also added its new spindle grille to the brand’s smallest model.

It manages to be inoffensive, but it doesn't really reflect the brand's latest design language of 'real world concept cars' like the NX and the LC ranges.

Inside, a couple of new leather colour options are available for the CT200h, while the addition of the wide-format 10.3-inch screen to the top of the centre console is the single largest change. Interestingly, the steering wheel controls appear to have regressed a little from the previous model, no doubt brought about by the addition of the new driver aids.

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.

The CT200h basically replicates a small hatchback in terms of interior size. It'll seat five, but if you try to put three adults across the back, they won't be particularly happy about it. 

The roofline is quite low and the car’s waistline is high, which makes the glasshouse feel small. Room in the front is adequate, but only just for taller drivers; the sunroof, as fitted to our test example, takes away a good chunk of headroom, despite the CT200h standing just 5mm lower than a Corolla overall. 

The seats themselves, too, are mounted just a touch high to be comfortable for taller drivers, while rear seaters will complain bitterly about being stuck behind my (184cm) driving position. However, my more diminutive wife pronounced herself very comfortable behind the wheel and in the passenger seat.

A nice, small steering wheel sits in front of a single-dial dash that sports two digital screens either side. The left-hand screen changes when you change the drive mode dial between Eco, Normal, and Sport. And there's also a full EV mode button in handy reach. 

Two cupholders are line astern between driver and passenger, although storage is at a premium thanks to the size of the car. Climate and multimedia controls - and even an old-school CD player – flow right through underneath the centre console, which steals away valuable space. There are no extras like wireless charging bays, nor is there Apple CarPlay or Android Auto.

There are bottle holders in the door, but don't try and stash anything that's over one litre in size because it just won't fit.

It's quite an austere proposition for rear-seat passengers, with no bottle holders in the doors, no cup-holders and no charging points. There are fixed vents under the front seats and on the right side of the rear area, so it's not a complete desert, and there are ISOFIX mounts for two child seats in the rear.

Another practicality issue that's unique to the CT200h is the gear shifter. It operates as a spring-loaded joystick, and unless you're watching the dash indicator, it can be tricky to know which gear you're in. Other car makers have actually recalled cars with this style of transmission stick, and it's certainly something that you have to get used to. 

Likewise, the old-school foot brake is certainly an anachronism in something like a Lexus.

Based on the previous generation Prius, the nickel-metal hydride battery for the CT is hidden underneath the rear seat, so it doesn't steal away too much boot room. However, the boot floor is still quite high, and the area is rather small at 375 litres with the seats up. There is 985 litres available when you drop the seats, but the aperture is short and narrow, so larger items will be a squeeze. There is a space-saver spare nestled away underneath the boot floor, too.

Another practicality note in the negative column is Lexus's insistence on the odd joystick control for its multimedia system. It's simply not very good. It’s imprecise when compared to a touchscreen, the action and feel of our test unit was very much less than premium, and it’s just awkward and clumsy to use. The CT is not the only Lexus to use it, but we wish the company would just see the light and ditch it all together.

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 1.8-litre twin-cam petrol engine makes a relatively low 73kW and 142Nm, while a 60kW, 207Nm electric motor that’s also connected to the front wheels chips in its share.

Combined, the system produces 100kW, while the torque figure translates to around the 150Nm mark. That juicy 207Nm doesn’t come into play, sadly, given that the petrol engine – which is built to run cooler than a traditional Otto cycle engine, and therefore more efficiently – does most of the work.

Throw in a transaxle for the electric motor and a power inverter, and things are getting complex. However, if the Prius is any indication, the CT200h’s drivetrain is durable and relatively serviceable, with batteries estimated to last ten years or longer.

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.

Here’s the odd thing – over 220km of largely highway driving, I couldn’t get the CT200h under a dash-indicated 10.4 litres/100km, against a claimed combined fuel economy figure of 4.4L/100km. 

I topped the tank off with 18 litres of fuel, which works out at a closer 8.8L/100km… but it still ain’t anything like 4.4. 

Another owner I spoke to, though, said he regularly records high fives with his CT200h in mixed conditions.

It runs a 45-litre tank that’ll happily take 95 RON fuel.

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've ever driven a Prius, then you'll be very familiar with the way that the CT drives. Based around a 73kW Atkinson cycle petrol engine which focuses on fuel efficiency rather than outright power, a 60kW electric motor (the pair combine to produce 100kW in total), a nickel-metal hydride battery array and a CVT gearbox, the CT200h – like the Prius – is a bit different to a regular hatch.

Under light throttle, the CT is quiet and moves along quite well, and you can even use full Electric Vehicle mode at speeds under 45km/h for a brief amount of time, (slightly less than two kilometres), and with a very gentle right foot.

The battery array is recharged via the petrol motor as well as regenerative braking (where heat energy is captured and directed back to the electric system) – but unlike a petrol-electric plug-in hybrid, there’s no way to stick a 240v cable into the CT to top up the battery. 

It has the unusual whines and odd noises that you would associate with a partly electric car, but the petrol motor sounds just like a regular old four-pot petrol unit, and it’s running most of the time.

One issue with the drive of a hybrid is its ability, or the lack thereof, to get off the line in any sort of hurry. You really have to mash the throttle to get going, which takes some getting used to. There’s also some hesitation and un-Lexus like thumps from the drivetrain if you confuse it by almost stopping then taking off again.

The CT200h’s biggest bugbear is that the fourth generation Prius exists. Built on a more sophisticated newer-generation platform and with a more refined drivetrain, the new Prius is a great insight into how good the next CT will be – and what the shortcomings of the current one currently are.  

The CT works well in high-traffic city environs, where a light throttle foot helps get the best out of the unusual drivetrain. Lots of lag from rest is an annoyance, as is an excess of CVT whine under hard efforts, but the CT200h pootles around town very well.  

Its small size does play against it when it comes to keeping out road noise at freeway speeds, though the CT is superior to most other similarly sized cars in this regard. As an aside, its build quality is nothing short of amazing, with minimalist panel gaps, a tight interior and lashings of paint on every surface.

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.

Lexus sells the CT with an unusual four-year/100,000km warranty, which includes roadside service coverage. The battery pack has an eight-year/160,000km warranty, while Lexus would like to see you back for a service every 12,500km or 12 months.
 
It’s not just about a warranty or a service interval with Lexus, though. For decades now, its customer service record has topped all industry measures, and everyone we know who has bought a Lexus with their own money has raved about the quality of the service received. 

As well, it’s a level of service that’s provided across the range. It’s a tangible benefit of buying a CT200h. 

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.