Lexus LS500 vs Mahindra Xuv 3Xo

What's the difference?

The LS500 is the least logical version of the most logical option in the ultimate luxury sedan segment in which logic doesn’t often apply at all. 

Take from that what you will, but if it was me being driven around I would definitely be opting for the hybrid version of the LS instead for its smooth electrified driving characteristics and lower operating costs.

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.

The distinctive but conservative style of Lexus is on full show across the LS’s massive frame. Like other cars in its class, it’s very much the image of the brand itself with styling points strong, but to me not as impressive as the LC500, which is a definitive expression of the brand.

The LS also has many styling points of the previous-generation Lexus design language which are in the process of being phased out.

The car was only updated last year, bringing with it a more recent interpretation of the brand’s big spindle grille, pointy headlight profile, and angular but traditional rear.

The LS - even in this Sports Luxury guise - does look quite menacing from certain angles. The width and stance of this car is accentuated by its curvaceous rear guards and big square front bumper, with the elegance of a classic three-box sedan maintained in a side profile.

The chrome wheel finish is a bit much for my taste, but there’s no doubt they’re real show pieces. They’d better be, too, because I hear they are incredibly expensive should you need to replace one.

The inside has highs and lows but it’s the place where you can most tell the LS has been on sale for a while.

I love the plush seats, big screen, integrated analogue clock and three-dimensional door card design, which sell the flagship luxury feel.

But this car’s age is on show with its clunky and much maligned 'Remote Touch' pad controller (which Lexus is at long last phasing out in its new cars), last-generation software suite, and its small, crowded instrument cluster.

There are a whopping nine interior trim combinations to choose from and ours has the most recently added black leather and ‘Nishijin Haku’ themed highlights which are meant to be inspired by the way "moonlight sits on an open sea".

The feel is a bit '90s, a rough textured fabric with a silver detailing and elements clad in a thin platinum foil, making you feel like you’re in a classic high-class Japanese taxi.

But I’ll admit it plays well with the ambient lighting effect in the doors, and is a unique selling point compared to the standard leather finish.

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.

For passengers, as you’d expect, the LS is stellar. The massive outboard rear seats offer plenty of room, and are complete with reclining, message, and cooling functions.

Adjustable vents feature, with quad-zone climate, and the screens come with individual headphone jacks and HDMI-in so you can bring with you all sorts of entertainment options for those longer journeys.

Other suitable additions worth noting include the wine cooler (although it’s a bit small for anything other than minibar-sized beverages, hardly the 007 trope of rolling out a full-size bottle of Bollinger), flip-down mirror with a light in the roof, and the touch panel controls in the armrest. I also appreciate the built-in sunshades. Nice touch.

Less impressive is the general vibe of the middle seat. With a large raised centre split in the floor and such wide and lavish outboard seats, the middle seat feels a bit forgotten.

Up front, the practicality offering includes a high level of adjustability for the seats to suit a wide range of driving positions, electrical adjust even for the steering column, and a nice wide seat which you simply sink into.

Of course, soft finishes adorn even unseen parts of the cabin so you’ll never touch a nasty hard plastic, and there are large storage areas in both the doors and centre console box.

This big armrest console also hides the USB connectivity within, and there’s a set of big cup holders with a flip-away lid if you want the wood grain design uninterrupted when they are not in use.

I have to mention the useless touchpad controller here, but hand the brand props for offering a collection of climate shortcut buttons on the dash, an actual volume knob, and truth be told you don’t need the touchpad anyway because the screen is touch. Just be ready for the matching last-generation software, which isn’t the best to use or navigate.

The boot has a volume of 440 litres which sounds plentiful, but the actual use of it is a reminder of one of the reasons SUVs are so popular.

Yes, it’s big and reasonably deep, but putting the largest CarsGuide case in there proved a bit clumsy as you have to lift it over the tall rear bumper and it only just clears the top of the relatively small opening.

I love sedans, but this is one area where you can see the benefit of a hatch opening, particularly if you were frequently doing the airport run.

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 LS500 packs a 3.4-litre twin-turbocharged V6 petrol engine with impressive peak outputs of 310kW/600Nm.

This engine is designed to replace a V8 in terms of its power and feel, and in a lot of ways it does.

It might surprise you to learn the only other place you’ll see this engine used in Australia is the Toyota LandCruiser 300 Series.

The alternative present in the LS500h is a hybrid version of the same engine, sans the turbos.

With its electric assistance, power outputs are lower than this turbo version, but get close with a combined total of 264kW.

While I like the walloping nature of the turbocharged V6 we drove, I think the hybrid is a no-brainer choice for reasons explained in the driving segment.

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.

Given the angry sounds emanating from under the bonnet of this LS every time I put my foot on the accelerator, I was surprised to find overall fuel consumption for the week was surprisingly good.

I used the LS to drive mostly around town, and yet it beat its own urban claim of 14.2L/100km, settling at 12.9L.100km, closer to the combined fuel figure of 10L/100km.

The hybrid is said to nearly halve this consumption, and I’m inclined to believe it based on previous experience with Toyota/Lexus hybrid systems. 

The LS500 requires at least 95RON unleaded fuel and has an 82-litre fuel tank. That means you're looking at a range of around 635km, using our real-world figure.

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.

For a seemingly very sophisticated car, there’s something decidedly unsophisticated about the way the LS500 feels from behind the wheel.

Immediately, it feels nowhere near as cutting edge or even as special as something like the LC500, which to me becomes the truest expression of everything Lexus.

No, the LS500 in this turbo V6 guise feels a little bit too old-fashioned. It’s quiet and under acceleration feels like a V8 of just a few years ago, but the Aisin-sourced traditional torque converter automatic transmission is, dare I say, ordinary, lacking the finesse of its German rivals. It’s a problem which is easily solved. Pick the hybrid.

Elsewhere the experience is decidedly Lexus. If you’ve driven even an IS the experience is very familiar in the LS. The touchpoints all match, the steering is light and smooth with a healthy serve of electrical assistance, and, for the most part, the ride is as floaty and comfortable as you’d expect.

I say ‘for the most part’ because there are limits to what the LS’s adjustable-height air suspension will filter out on the enormous 20-inch wheels, complete with run-flat tyres.

Small bumps and potholes are dispatched with ease. Anything too large which passes a certain thud-factor will definitely be communicated to the cabin, though, making for a strange all-or-nothing ride quality.

It is impeccably silent inside, though. The engine is distant, even under load, and tyre noise is virtually non-existent thanks to specially designed alloy wheels with hollow chambers designed to minimise this effect. Now that’s more like what I expect from a Lexus.

It handles very well for such a big unit, making it at least decent to drive for the few buyers who will actually take the helm themselves.

This is no land yacht, it’s a surprisingly agile and adept machine when faced with a bit of blacktop. And it's here where the turbocharged V6 comes into its own compared to the hybrid, offering superior driver engagement.

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 offers a five-year and unlimited kilometre warranty, and LX buyers get three years of complimentary membership to the brand’s ‘Encore Platinum’ owner experience, which includes three years of capped price servicing, free loan cars at the time of service, invites to events, discounts on fuel at Ampol outlets, and four uses of ‘Lexus On Demand’ which lets owners swap into another Lexus model for up to eight days at a time, as well as eight free uses of valet parking at certain locations.

Servicing on the LS occurs once every 12 months or 15,000km and is fixed for the first three years at $595. Very cheap for the space it plays in.

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.