Mahindra Xuv 3Xo vs Audi SQ2

What's the difference?

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 Q2 is good value and great to drive – especially the SQ2. The exterior looks new, but the cabin feels older than the larger Q3, and most other Audi models.

More standard advanced safety tech would make the Q2 even more appealing, as would a five-year, unlimited-kilometre warranty. While we’re at it, a hybrid variant would make enormous sense. 

So, a great car, but Audi could offer more to make it an even better proposition for buyers. 

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.

This updated Q2 looks almost identical to the previous one and really the only changes are subtle styling tweaks to the front and back of the car.

The front air vents (they aren’t real air vents on the Q2, but they are on the SQ2) are now larger and pointier and the top of the grille is lower. Around the back, the bumper now has a similar design to the front, with those pointy polygons set wide apart.

It’s an angular little SUV, full of sharp-edged shapes like some kind of acoustical wall in an auditorium.

The SQ2 just looks more aggro, with its metallic-trimmed air vents and beefy quad exhaust. 

The new colour is called Apple Green and it’s not really like any colour on the road – well not since 1951, anyway when this hue was hugely popular on everything from cars to telephones. It’s also very close to Disney’s “Go Away” green – look it up and then ask yourself if you should be driving a car that’s kind of invisible to the human eye.

I digress. Other colours in the range include Brilliant Black, Turbo Blue, Glacier White, Floret Silver, Tango Red, Manhattan Grey and Navarra Blue.

Inside, the cabins are the same as before, apart from the larger, sleeker media display, and there are some new trim materials, too. The 35 TFSI has silver inlays with a diamond paint finish, while the 40TFSI has aluminium door sills.

The Q2 has beautiful quilted Nappa leather upholstery, which goes beyond just covering the seats and to the centre console, doors and armrests.

All options offer well laid out and premium feeling cabins, but the disappointing part is that it's an older Audi design, which started out in the third-generation A3, launched in 2013, and still exists on the Q2, even though most Audi models, including the Q3, have the new interior design. This would bug me if I was thinking about buying a Q2. 

Have you thought about a Q3? It’s not that much more in price, and it’s a tad bigger, obviously. 

The Q2 is tiny, at 4208mm end to end, 1794mm wide and 1537mm tall. The SQ2 is longer at 4216mm long, 1802mm wide and 1524mm tall.  

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 Q2 is basically a current model Audi A3, but more practical. I’ve lived with the A3 Sedan and Sportback and while rear legroom is just as confined in those as it is in the Q2 (I’m 191cm and need to squish my knees behind my driving position) getting in and out is easier in the SUV, with its elevated ride height and taller door apertures.

The easier access helps enormously when helping kids into their child seats. In an A3 I need to kneel on the footpath to be at the right level to put my son into the car, but not with the Q2.

The boot space of the Q2 is 405 litres (VDA) for the front-wheel-drive 35 TFSI and for the SQ2 it’s 355 litres. That not bad, and the large hatch makes for a big opening, which is more practical than a sedan’s boot.

Inside, the cabin isn’t enormous, but rear headroom is good, thanks to the fairly high roof.

Cabin storage isn’t terrific, although the front door pockets are big and there are two cupholders up front.

Only the SQ2 has USB ports in the back for rear passengers, but all Q2s have two USB ports up front for charging and media – plus all have wireless charging for phones.

The Q2 entry grade is the 35 TFSI and it lists for $42,900, while the 40 TFSI quattro S line is $49,900. The SQ2 is the king of the range and lists at $64,400.

The SQ2 has never been to Australia before, and we’ll get to its standard features in a moment.

Aussies have been able to buy a 35 TFSI or 40 TFSI since the Q2 arrived in 2017, but now both have been updated with new styling and features. The good news is the prices have only gone up by a few hundred bucks,  compared to the old Q2.

Standard on the 35 TFSI are LED headlights and taillights, LED DRLs, leather seats and steering wheel, dual-zone climate control, Apple CarPlay and Android Auto, eight-speaker stereo with digital radio, front and rear parking sensors and a rear-view camera.

That was all standard on the previous 35 TFSI, but here’s what’s new: an 8.3-inch media screen (the old one was seven inches); a proximity key with push button start (great news); wireless phone charging (brilliant), heated exterior mirrors (more helpful than you’d think), ambient interior lighting (aww… pretty); and 18-inch alloys (heck yes).

The 40 TFSI quattro S line adds sports front seats, drive-mode selection, a power tailgate, and paddle shifters. The previous one had all that, too, but this new one has the sporty S line exterior body kit (the previous car was just called Sport not S line).

Now, the 45 TFSI quattro S line may appear  not to get much more than the 35 TFSI, but the extra money is getting you more grunt and an awesome all-wheel-drive system –  the 35 TFSI is front-wheel-drive only. If you love driving and can’t afford the SQ2, then $7K extra for the 45 TFSI is absolutely worth it.

If you have saved all your pennies and the SQ2 is what you’re zeroing in on, then here’s what you get: Metallic/pearl effect paint, 19-inch alloys, matrix LED headlights with dynamic indicators, the S body kit with quad exhaust, sports suspension, Nappa leather upholstery, heated front seats, 10-colour ambient lighting, stainless-steel pedals, auto parking, a fully digital instrument cluster, and a 14-speaker Bang & Olufsen stereo.

Of course, you get an incredible high-output four-cylinder engine, too, but we’ll get to that in a moment.

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.

There are three grades and each has a different engine. 

The 35 TFSI has a new 1.5-litre four-cylinder turbo-petrol engine making 110kW and 250Nm; the 40 TFSI has a 2.0-litre turbo-petrol four making 140kW and 320 Nm; and the SQ2 has a 2.0-litre turbo-petrol as well, but it puts out a very impressive 221kW and 400Nm.

The 35 TFSI is front-wheel drive, while the 45 TFSI quattro S line and SQ2 are both all-wheel drive.

All have a seven-speed dual clutch automatic transmission – nope you can’t get a manual. There are also no diesel engines in the line-up.

I drove all three cars and, from an engine perspective, it’s like turning the ‘Smile Dial’ up from Mona Lisa in the 35 TFSI, to Jim Carrey in the SQ2, with Chrissy Teigen in between.

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.

Audi engines are superbly modern and efficient – even its monster V10 can shut down cylinders to save fuel, and so can the new 1.5-litre four-cylinder engine in the 35 TFSI. Audi says that over a combination of urban and open roads, the 35 TFSI should use 5.2L/100km.

The 40 TFSI is thirstier at 7L/100km, but the SQ2 demands a bit more at 7.7L/100km. Still, not bad. 

What’s not good is the lack of a hybrid, PHEV or EV variant of the Q2. I mean the car is small and ideal for the city, and therefore a perfect candidate for an electric version. Not having a hybrid or EV is why the Q2 model range doesn’t score well for its overall fuel economy.

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.

When it comes to the driving part, Audi can almost do no wrong – everything the company makes, whether it’s low powered or rip-your-face-off fast, has all the ingredients for engaging driving.

The Q2 range is no different. The entry-grade 35 TFSI has the least grunt and, with its front wheels pulling the car along, it’s the only one in the family that’s not blessed with all-wheel drive, but unless you’re doing laps at a track you’re not going to be wanting more power. 

I drove the 35 TFSI for more than 100km on the launch, through the country and into the city, and in all situations, from overtaking on highways to merging and slow traffic, the most affordable Q2 performed well. That 1.5-litre engine is responsive enough and the dual-clutch transmission changes swiftly and smoothly. 

Superb steering and good visibility (although that rear three-quarter view is slightly obstructed by the back pillar) makes the 35 TFSI easy to drive.

The 45 TFSI is a good mid-point between the 35 TFSI and the SQ2 and comes with a very noticeable bump in oomph, while the extra traction from the all-wheel drive is a reassuring addition. 

The SQ2 isn’t the hardcore beast you might think it is – this thing would be super easy to live with daily. Yes, it has firm sports suspension, but it’s not overly hard, and that engine, which nudges almost 300 horsepower, doesn’t feel like a Rottweiler on the end of a leash. If anything, it’s a Blue Heeler that loves to run and run, but is happy to take it easy and get fat.  

The SQ2 is my pick of the bunch, and not just because it’s quick, agile, and has an intimidating growl. It’s also comfortable and luxurious, with sumptuous leather seats.  

The Q2 was given the maximum five-star ANCAP rating when it was tested in 2016, but by 2021 standards it is light on advanced safety tech.

Yes, AEB with pedestrian and cyclist detection is standard on all Q2s and the SQ2, and so is blind-spot warning, but there’s no rear cross traffic alert or reverse AEB, while lane-keeping assistance is only standard on the SQ2, along with adaptive cruise control.

For a car that will most likely be purchased by younger people, it doesn’t seem right that they’re not being protected as well they would be in more expensive Audi models.

For child seats, there are two ISOFIX points and three top-tether anchor mounts.

A space-saver spare is under the boot floor.

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.

The pressure for Audi to move to a five-year warranty must be hugely intense, with Mercedes-Benz offering one, along with pretty much every other mainstream brand. But for now, Audi will only cover the Q2 for three years/unlimited kilometres.

As for servicing, Audi offers a five-year plan for the Q2 costing $2280 and covering every 12-month/15000km service over that time. For the SQ2, the cost is only a fraction higher at $2540.