Lexus RC vs Mahindra Xuv 3Xo

What's the difference?

If you’re a buyer that thinks with their head, the RC 350 F Sport is the obvious choice when compared to its direct rivals.

After all, it looks great (at least to these eyes), feels luxurious in more ways than one, and is unrivalled when considering value-for-money.

But, if you think with your heart instead, it’s clear it is isn’t on the same level dynamically and therefore doesn’t feel as sporty to drive as its name suggests.

So, don’t let its sports car classification fool you, the RC 350 F Sport is more of a grand tourer, or a comfortable cruiser, to be precise, and an underrated one at that.

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.

Looking at the RC 350 F Sport, it’s hard to imagine how it became so anonymous on the road, whether you love it or hate it.

Up front, its striking design simply cannot be ignored, with its unique mesh 'Spindle' grille insert demanding attention.

Either side of it are the LED headlights and boomerang-style daytime running lights, which, again, cannot be missed.

Around the side, the RC 350 F Sport has all the hallmarks of a classic coupe, including a swoopy roofline, and looks all the better for it.

The 19-inch alloy wheels wrapped in a mixed set of Bridgestone Potenza tyres are particularly arresting thanks to their sporty 10-spoke design.

That said, the rear end is arguably the RC 350 F Sport’s best angle, at least universally, thanks to its crisp LED tail-lights and chunky bootlid.

The bumper below is also a looker, even with its fake side air intakes, while its diffuser insert is flanked by a pair of chrome exhaust tailpipes.

Inside, the RC 350 F Sport isn’t quite as good, with most of our criticism directed at the 10.3-inch central display, which is powered by an average multimedia system made worse by an incredibly fiddly touchpad controller. The physical shortcut buttons on hand are but small mercies.

Thankfully, Apple CarPlay and Android Auto support is now standard, so a better user interface is literally in your pocket… but you still don’t have a touchscreen to work with.

The RC 350 F Sport’s button-controlled 8.0-inch digital instrument cluster is much better, even if it’s more like a multi-function display due to its limited functionality.

While the centre stack and console designs are undoubtedly showing their age, there’s no doubting this is a premium model thanks to the selection of high-quality materials used throughout the cabin.

In our test vehicle, black leather-accented upholstery with (very cool) 'Tuscan Sun' yellow accents, piping and stitching covers the sports steering wheel, gear selector, sports seats, armrests, door inserts, knee rests and the instrument cluster. So, almost every touch-point.

Pleasingly, soft-touch plastics are used for the upper and middle dashboard as well as the door shoulders, with hard plastics only found on the lower dashboard, door bins and rear seat divider.

As per other Lexus models, the RC 350 F Sport has nice rose-gold accents on its steering wheel, gear selector, front air vents and centre console, while specific Naguri aluminium trim adorns its dashboard and door inserts. And there are also steel pedals.

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.

Hope you’re not expecting the RC350 F Sport to be the first word in practicality, because it’s not.

Measuring 4700mm long (with a 2730mm wheelbase), 1840mm wide and 1395mm tall, the RC350 F Sport is a decently sized coupe, but that doesn’t mean it’s spacious. Hell, it’s hard to get into it the first place, let alone out.

We are of course referencing the token second row, which is cramped at best. In fact, behind my 184cm (6.0ft) driving position, there is no toe-room nor headroom. Yep, if you’re around my height or taller, get used to burying your chin into your chest.

Thankfully, legroom is better but still limited to less than two centimetres, while foot space is compromised by the unusually tall transmission tunnel. And in case you were wondering, even the first row is on the tighter side.

Beyond the central air vents, you’d think rear occupants would be cheered up with cupholders, a fold-down armrest and USB ports at the very least. Well, they don’t get any of that, with a couple of coat hooks the only amenities on offer.

And don’t forget that being a four-seater, there are only two seats in the second row, so this is definitely not a ‘family car.' That said, there are two ISOFIX and two top-tether anchorage points for child seats, so you can theoretically take a couple of younglings with you on a trip.

In-cabin storage options are very limited, with the glove box small in size and mostly taken up by the manual, while the central bin is useable but somewhat occupied by two USB-A ports, a 12V power outlet, and an auxiliary input.

And whatever you do, only bring up to two drinks with you, as beside the pair of cupholders next to the gear selector, there is no other place to officially store extras. Yep, the front door bins are only good for storing very short and narrow items.

The boot is a different story, with a decent 374L of cargo capacity, and it can be expanded by stowing the 60/40 split-fold rear bench, an action that can annoyingly only be performed in-cabin via the manual release latches.

That said, the boot’s tall load lip makes unloading bulkier items a little trickier, while getting them onboard in the first place is complicated by its wide but short aperture. At least there are four tie-down points on hand to secure loose loads?

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 RC 350 is motivated by a lusty 3.5-litre naturally aspirated V6 petrol engine that produces 232kW of power at 6600rpm and 380Nm of torque from 4800-4900rpm.

For reference, the RC 300 uses a 2.0-litre turbo-petrol four-cylinder unit that develops 180kW at 5800rpm and 350Nm from 1650-4400rpm.

Either way, these outputs are exclusively sent to the rear wheels via a well-sorted eight-speed torque converter automatic transmission with paddle-shifters.

This combination helps the RC350 sprint from a standstill to 100km/h in about 6.1 seconds while on the way to its electronically limited top speed of 230km/h.

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.

The RC350’s fuel consumption on the combined-cycle test (ADR 81/02) is 9.1 litres per 100 kilometres, while its carbon-dioxide emissions are 212 grams per kilometre, but both claims are a little keen.

In our real-world testing, we averaged 12.2L/100km, which is far cry from the above, given our result came from 180km of driving that was heavily skewed towards highway stints over city traffic.

For reference, the RC 350’s 66L fuel tank takes 95 RON premium petrol at minimum.

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 RC350 F Sport is actually pretty good to drive – so long as you understand what it’s about.

Think of it more as a comfortable cruiser than a sports car and you’ll forgive it for some of its shortcomings. Yep, it is that relaxing to drive.

While the F Sport’s suspension (independent double-wishbone front and multi-link rear axles with adaptive dampers) does have a sports tune, it still serves up a comfortable ride on most surfaces.

Naturally you can play with the five drive modes (Eco, Normal, S, S+ and Custom) on hand to increase its stiffness and therefore improve handling, but the difference between soft and ‘hard’ is negligible, so don’t bother.

Either way, the F Sport does have a noticeable habit of picking up sharper road edges, such as nasty potholes, and it's particularly prevalent at the rear. That said, it doesn’t detract from its luxuriousness all that much.

Where the sportiness really comes to the fore, though, is via the F Sport’s electric power steering system, which has a variable ratio.

As well-weighted as this set-up is as standard, you’ll find it hard to forget how sharp it is on turn-in. Among several factors at play, the obvious one is the F Sport’s rear-wheel steering system, which is better executed than most.

This technology turns the front wheels in the opposite direction to the rears at lower speeds but in the same orientation at higher velocities.

The result of the former? A mid-size coupe that feels like it has a short wheelbase, with the improved manoeuvrability especially noticeable in car parks. Conversely, the latter lends itself to greater stability when you need it.

And it’s a good thing it is the way it is, because the RC 350 F Sport has a kerb weight of 1740kg, which is not exactly sports-car light. This heft is a felt when cornering hard, even though body control is pretty strong overall.

Handling performance is also enhanced by the rear Torsen limited-slip differential, which helps improve grip upon corner exit, at which point the RC 350 gets to show off its straight-line abilities.

The V6 engine is buttery-smooth, but you really need to stick the boot in to fully enjoy it, with it only really starting to come alive when engine speeds are above 3000rpm.

That said, it’s easy to appreciate this character trait around town, where the RC 350 is truly unfazed. Take it onto the open road, though, and acceleration is more than pleasing.

The automatic transmission is a great dancing partner here, serving up delightfully smooth gear changes. It’s also surprisingly responsive, perhaps too responsive, as it can be quite fussy in city traffic, shuffling up and down ratios in quick succession.

Biggest gripe, however, is the digitally enhanced sound the RC 350 produces. Sitting inside, the noise being pumped in is satisfying, but you can’t help but acknowledge the aural deception at play.

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.

As with all Lexus models in Australia, the RC 350 comes with a four-year/100,000km warranty and four years of roadside assistance. Both offers are a year behind that of fellow premium brands Mercedes-Benz and Genesis.

The RC 350’s service intervals are every 12 months or 15,000km, whichever comes first. A three-year/45,000km capped-price servicing plan is available, costing $495 per visit, which is not too bad at all.

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.