Lexus Lm500H vs Mahindra XUV3XO

What's the difference?

The Lexus LM 500h is luxurious, comfortable, practical, easy to drive and expensive. While it may appear to be the ultimate family car, with only four seats it's limited in terms of how many kids and their friends you can carry. On top of that, the privacy screen introduces accessibility issues to the kids you wouldn't encounter on other vehicles. If you are thinking of a Lexus people mover as your next family car I'd suggest looking at the LM 350h which has seven seats and no privacy screen. If you’re looking at a business class executive van the LM 500h would be perfect. 

So, what do we make of the Mahindra XUV 3X0?

After our first taster in India, we are pleased with its presentation inside and out, packaging, quality and equipment levels.

And while driving around a brand’s own proving ground cannot give a true indication of how a vehicle performs, steers, handles, rides and stops, our initial impression is that this is an easy, confident, responsive, agile and comfortable small SUV from behind the wheel. More or less.

Of course, not knowing pricing limits a definitive verdict, but the 3XO looks promising, and we’re keen to drive it on Australian roads very soon, so watch this space.

Better still, it is obvious that Mahindra is serious about cracking Australia’s small SUV market, since the 3XO ticks so many of the essential boxes.

In the face of largely cheap yet disappointing rivals out there, that’s a very good thing.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

The LM 500h doesn't look real. More like a concept vehicle with its vertical face wearing that enormous grille. Feels like if you watched it for long enough you’d catch it transforming into some kind of robot. Yet, at the same time its styling is elegant and prestigious.

I have a confession to make. I used this Lexus as my office. Its interior is that comfortable and spacious. I'm also a parent and there were times where it was the quietest place to get some work done.

It also let me observe people's reactions as they walked past with their dogs not knowing what was going on inside behind those tinted windows. The people that noticed were clearly car enthusiasts as they knew what they were looking at and couldn't pass without gaping it awe.

The LM 500h’s interior is superbly plush with thick carpets, beautiful copper metallic trim and nappa leather seats.

As I’ve said, the cockpit up front is less luxurious than the extravagant first class section in the back behind that dividing wall.

And yes, I’ve seen large screens before but nothing that stretches the width of the vehicle.

The 3XO is not quite as new as it looks.

Although only on sale in India since last year, the newcomer is actually based on the decade-old SsangYong Tivoli, which was the first model under Mahindra’s brief ownership of the Korean brand (now under KGM control since 2023).

And, if you’ve visited India lately, you might have seen a substantially modified Mahindra version of the Tivoli, badged XUV300 and sold for five years there from 2019, and the actual basis for the 3XO.

Now, Mahindra says that the latter is around 80 per cent new, with fresh sheetmetal clothing the bones of its predecessor(s). And they’re quite contemporary threads, with crisp surfacing, striking LED lighting, clean grille finishes and a pert rear-end design.

Subaru would be proud of the squared-off wheel arches, lofty 201mm ground clearance and sub-four-metre length, while the latter helps keep the small SUV inside an Indian tax bracket. Fun fact: that’s why the old Ford EcoSport, also from Chennai, needed its spare wheel mounted on the tailgate.

The 3XO's length/width/height/wheelbase of 3990mm/1821mm/1647mm/2600mm respectively, puts the 3XO on the stubbier side of the crossover brigade. Yet with more clearances than almost all alternatives. This is crying out for a rugged 4x4 ‘Outback’ treatment.

Overall, then, the smallest of Mahindras is an effectively chunky update, with a height and stance to handle the rough and tumble of urban driving.

You might be able to take Lexus out of Toyota but it's very hard to take Toyota out of Lexus and this particularly applies to the practicality of the LM 500h.

Every day I discovered new compartments, tray tables and storage areas. There are so many cabinets, lockers and hidey holes that we almost left my belongings (an entire family of plushie toy capybaras) behind because there are so many places to check.

Of course, I'm talking about the rear compartment here because up front there's not much storage. In fact, it proved to be quite a problem in that I had nowhere to put my bag with somebody sitting next to me and no area behind the front seats to stow it, either.

Talking of seats, the LM 500h only has four of them, with two up front and two in the rear. Up front, the seats are supportive and large, but the rear seats - those are, well... have a look at the images.

We’re talking two large captain's chairs that look as though they’ve been removed from the first class section of a plane.

And while this might be suitable for businesses shuttling a couple of executives to and from meetings, for a family, even with two children, the extra couple of seats a third row offers would come in handy.

The LM 350h has seven seats over three rows and no privacy screen. A far better choice for families.

For device charging there are USB ports up front and in the rear. There are wireless phone chargers for those in the back seats but not up front.

The LM 500h has a cargo capacity of 752 litres with all seats in place.

Mahindra reckons that even though the 3XO is only four metres long, it's got the space and the practicality of some 4.7m SUVs.

Which sounds dubious, but first impressions inside reveal ample room for legs, shoulders and heads, even in the sunroof-specced AX7L. Sat high, vision is impressive too, aided by an excellent driving position on nicely-shaped seats, deep glass areas and handy 360-degree camera views.

Based on the old dashboard architecture but with a completely redesigned central touchscreen and electronic instrumentation pod (and both measuring in at 10.2 inches), the effect is modern enough, with a very welcome avoidance of screen-based buttons for actual switches that are incredibly easy to navigate.

In fact, the sheer user-friendliness of the 3XO’s interior is commendable, from the world’s deepest glovebox and chilled centre bin (in the AX7L only) to the various USB ports, cupholders and storage options. The climate control effectiveness is a given if any Indian vehicle is to succeed. And the material fit and finish seemed fine. About the only dislike is the lack of steering-wheel reach adjustment, betraying the Mahindra’s real age.

Moving to the row behind, there’s sufficient space for a pair of 180cm adults, on comfy cushions. Again, vision, storage and all amenities rate highly, with face-level vents especially appreciated at this price point. The 3XO is pitched as a sensible family-car proposition in India so the back-seat area is crucial.

Behind that is the boot, which is fairly large as well, aided by a low floor and a large hatch aperture, while a space-saver spare lurks underneath, so no stupid tyre-repair kit for this sensible small SUV.

There’s also a lot of room under the bonnet…

At the time of publishing, XUV 3XO (here-on in referred to as 3XO) pricing hadn’t been confirmed. But, we’re instructed that the entry-level AX5L will start from “about $25,000”, placing it right among the sharks.

But Mahindra is out for blood, so keyless entry/start, synthetic leather trim, a 10.2-inch touchscreen and 10.2-inch driver display, wireless Apple CarPlay/Android Auto, a surround-view camera, dual-zone climate control, electric folding mirrors, roof rails and 16-inch alloys – with a spare – are included.

From “well under $30K”, the AX7L ushers in 17-sized rims, a panoramic sunroof, Harman-Kardon audio, a chilled glovebox, fog lights, front parking sensors and a shockingly powerful (pun intended) 65W USB-C port to (more than) make up for a missing wireless charger pad.

Lined up against its Chinese and South Korean rivals, the 3XO’s specification is largely on the money. Largely.

However, no DAB+ digital radio is an oversight, and although the Mahindra includes must-have advanced driver-assist safety systems (ADAS) like autonomous emergency braking (AEB) and lane-support tech, it misses out on some secondary nice-to-have alerts optionally available on some rivals – more on them in the safety section later on.

Now, if you’re thinking that the 3XO might look a bit familiar, your eyes aren’t deceiving you. And there’s a very solid reason for that.

The LM 500h is a petrol-electric hybrid with a 2.4-litre four-cylinder turbo-petrol engine which makes 202kW/460Nm and works in concert with two electric motors.

The front motor makes 64kW/292Nm and the rear makes 76kW/169Nm. The combined maximum power output of the two motors and the petrol engine is 273kW.

The LM 500h is all wheel-drive and has a six-speed automatic transmission.

It might be tiny and a cylinder down compared to almost all of its Asian rivals, but Mahindra’s in-house 1.2-litre three-cylinder turbo-petrol engine follows European downsizing convention.

This means it relies on advanced technologies to produce comparatively healthy power and torque outputs, being 82kW at 5000rpm and 200Nm between 1500rpm and 3500rpm respectively.

Coming in at around 1400kg, the result is a power-to-weight ratio of about 59kW per tonne, which is modest against the slightly heavier Tiggo 4’s 76kW/tonne, for instance.

Driving the front wheels is a Toyota-made six-speed torque-converter automatic, so no droney CVTs or laggy dual-clutch transmissions here. But we’re disappointed the six-speed manual gearbox offered elsewhere isn’t even an option in Australia, especially after driving the Mahindra.

Lexus says after a combination of urban and open roads the LM 500h should use 6.6L/100km. In our own testing we found consumption was higher at 9.4L/100km.

Worth noting my driving environment was mainly a hilly suburban one filled with school drop offs. Achieved some personal bests this week, with one long run to Sydney’s outskirts, only to return in nightmarish peak hour traffic.

Premium (95 RON) fuel is required and the tank size is 60 litres. In theory the driving range is a smidge more than 900km, which drops to around 640km using our real-world average.

The official Australian combined fuel consumption average is 6.5 litres per 100km, which translates to 137g/km of carbon dioxide emissions. With a 42L tank, should equate to about 640km per refill.

Urban and Extra Urban numbers are 7.6L/100km and 5.9L/100km respectively.  

Just keep in mind that the 3XO is recommended to drink from the 95 RON premium unleaded petrol bowser.

Quite simply, driving the LM 500h is like piloting a limousine on stilts. Superbly comfortable, but with an elevated driving position that offers outstanding forward and side visibility, the LM 500h is an easy vehicle to drive for long periods of time.

A digital rear vision mirror means visibility behind is good and unobstructed by the privacy screen or the seats.

The drawbacks are down to the lack of space up front, with the driver’s chair limited in its ability to recline or slide back due to the bulkhead behind it.

And that's compounded by the lack of cabin storage for bags if the front passenger seat is taken.

As for the rear passengers there aren't many people movers offering this level of comfort, except perhaps the Zeekr 009.

Variable suspension that adjusts continuously keeps the vehicle composed and provides a high level of comfort for those in the rear. At the same time, the LM stays nice and flat through roundabouts while remaining civilised over speed bumps.

And then there's the acceleration, which, while not supercar-like is incredibly brisk for a van. The all-wheel drive system provides outstanding traction in wet and slippery conditions, too. 

Our family used the LM daily for everything from school runs to shopping trips and weekends away and not only was it fun to drive, our lucky rear passengers enjoyed sitting high and being able to see clearly out their windows along with the luxury of a giant movie screen.

There’s much made about how strong and rigid the 3XO’s platform is, and it’s not just for better crash protection.

Aided by a typical MacPherson-style strut front and twist-beam rear suspension set-up, Mahindra reckons it has dialled in just the right amount of dynamic finesse to make this small SUV the keen driver’s choice.

To find out if that’s the case, we spent a couple of hours behind the wheel of one at Mahindra’s vast proving ground near Chennai. A 180km/h high-speed loop. A set of chicanes. And a few rough surfaces where we could find them. Just a taster, really.

The overall impression is that nothing betrays the 3XO’s ageing platform from behind the wheel.

Torquey and smooth, the 1.2-litre three-cylinder turbo petrol engine is punchy off the line, possessing a sporty, peppy nature as well as an endearing willingness. Adding to this is the six-speed auto, as it’s also pleasingly responsive, with no lag or jolts. This is how small turbos should behave.

We managed to max it out at almost 170km/h (indicated) on the speed bowl, where it felt dead-set stable and secure. Impressive, given the 3XO’s height and ground clearance.

But the steering seems too light and a little disconnected during low-speed manoeuvres, at least for keener drivers, but once velocities climb, it seems to weigh up with sufficient heft. This is reminiscent of the way that Volkswagens used to tune its steering some 25 years ago. Maybe that’s the biggest sign of the Tivoli’s bones lurking underneath.

What this means is that the Mahindra is not the sort of SUV you buy if you absolutely relish driving, in the way the Mazda CX-3 or the very sadly-missed Ford Puma are. Hopefully, we’ll be pleasantly surprised on Australian roads.

We never got a chance to test the suspension’s ride quality, but over the couple of bumps that we did traverse, it seemed to soak them up well enough. And even though our test 3XO lacked the (optional) rear parcel shelf, road and tyre noise seemed sufficiently contained. Again, Australian roads will reveal all.

What we can say with some confidence is that the little Mahindra is a lively, user-friendly, comfort-biased and civilised small SUV. No glaring faults or anomalies appeared, just a cheerful, charming character.

For what it represents, the 3XO seems properly engineered and tuned.

Perhaps all those years ironing out the bugs in the preceding XUV300 and Tivoli are paying dividends for today’s buyers.

We weren’t expecting that.

No Australian or European NCAP crash-test rating exists for the 3XO.

But it does include AEB with cyclist/pedestrian detection, forward collision warning, lane keep assist, traffic sign recognition, lane departure warning, high beam assist and adaptive cruise control with Smart Pilot Assist, as well as six airbags.

Plus, ISOFIX fixings are fitted to the rear seats, along with a trio of child-seat anchorage points.

However, neither grade offers rear cross-traffic alert and a blind-spot monitor, meaning the XUV 3XO may struggle to achieve a five-star ANCAP crash-test rating at this time.

That said, it recently scored five stars in India’s new (but less-stringent) Bharat NCAP test, aided by extensive body strengthening and crash-force mitigation engineering development at Mahindra’s world-class research and development centres in India.

And there’s still more safety development underway, ahead of next year’s planned ANCAP test.

Lexus covers the LM 500h with a five-year, unlimited kilometre warranty. 

The Lexus Encore Platinum program is complimentary for LM owners for three years, providing 24-hour roadside assist, a loan vehicle or pick-up/return service at service time, 'On Demand' vehicle evaluation options, valet and airport parking benefits as well as exclusive offers and event opportunities.

Servicing is recommended annually or every 15,000 kilometres, and impressively, pricing is capped at $695 per service over five years.

Mahindra offers a seven-year warranty with roadside assistance, and that is excellent news for most buyers. But the 150,000km cap when most other brands have unlimited mileage might fall a bit short for some prospective buyers’ requirements.

At the time of publishing, no service scheduling and capped-price servicing pricing information was available, but expect these to be announced after early July 2025.