Mahindra Xuv 3Xo vs Mercedes-Benz GLC-Class

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 new Mercedes-Benz GLC200 might be the base-grade, but it doesn’t look or feel like it. From the outside, it’s stylish and refined, and inside, it delivers that signature Benz luxury with premium features, impressive tech and a beautiful cabin.

While the engine isn’t wildly powerful, it’s more than capable for everyday driving and long stretches on the highway and the ride quality overall is smooth, quiet and composed. It loses points for being more expensive than its entry-grade rivals and for those steep ongoing servicing costs, which could be a sticking point for some 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.

The GLC is a handsome SUV with a strong, confident stance. It looks fit and premium, but not overly sporty, especially with the standard 'Avantgarde' exterior styling seen on our test car.

The entry-level grade rolls on 19-inch alloy wheels, features slimline running boards, LED lighting all around and an interior ambient lighting package that even includes logo 'puddle light' projection from the side mirrors.

Inside, the GLC200 doesn’t skimp on style. You get sports seats trimmed in synthetic leather (available in a range of colours), plus a panoramic sunroof, flashy dual displays and a black headliner that adds a cocooned feel.

The ambient lighting is a real standout and reminiscent of sci-fi films like Tron! It adds to the cabin’s upmarket vibe.

Combined with the soft-touch surfaces and neat trim details, the interior feels luxurious. And to be frank, it should at this level. But not every base-grade SUV in this segment gets it right. This one does.

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 cabin is spacious in both rows, with decent access thanks to wide door apertures and 195mm of ground clearance. That said, it’s the kind of cockpit you sort of tuck into and I knocked a knee or elbow on the steering wheel getting in (my husband joked this was just a user issue). My eight-year old had no trouble hopping in and out, though.

The front seats are best described as sumptuous, with features like expandable under-thigh and lumbar support. It’s super easy to get comfortable and stay that way, a big plus for anyone who does long drives, like I do.

The rear seats are equally comfy, with generous padding and deep bases. You’ll find three top-tether points in the back row, but realistically, it’s a space better suited to two child seats.

Keeping the cabin tidy is simple thanks to thoughtful storage throughout. There are deep door bins with drink bottle holders, a couple of cupholders in each row, a largish glove box and a dual-lid centre console.

Up front, there’s also a phone cubby, two USB-C ports and a wireless charging pad. In the rear, you get another two USB-C ports and some handy map pockets.

The boot has proven to be a practical space, with 620L of capacity and a level load floor. There’s a reversible mat and underfloor storage, which is also where you’ll find the space-saver spare tyre.

This grade now includes a powered tailgate, a welcome addition, and the second row folds electrically in a 40/20/40 split, giving you more flexibility when you need it.

The updated media display is easy enough to use once you spend a bit of time with it. The touchscreen is responsive, and wireless Apple CarPlay maintained a steady connection throughout our test. I also appreciated how the instrument cluster and head-up display pull through directions from either your phone or the in-built sat nav system.

There are five variants in the GLC range, and for this review we’re testing the new entry-level GLC200, priced from $84,455, before on-road costs.

While it’s definitely more affordable than the next step up, the GLC300, it still wears the highest price tag among its base-grade rivals, with the Audi Q5 35 TDI starting from $73,400 and the BMW X3 xDrive20i from $77,601.

That said, the GLC200’s generous equipment list could easily convince you it sits higher in the range. Standard features include 19-inch alloy wheels, synthetic leather trim as well as electric front seats with memory, heating and Mercedes’ ‘kinetic’ function.

You also get a panoramic sunroof, a slick 12.3-inch digital instrument cluster, a colour head-up display and a vertical 11.9-inch media screen running an upgraded operating system with satellite navigation plus wireless Apple CarPlay and Android Auto.

Practicality hasn't been overlooked, either. There’s a space-saver spare tyre (a welcome change from the run-flat tyre solution often employed by Euro brands), a handsfree powered tailgate, adaptive LED headlights, dual-zone climate control, four USB-C ports, two 12-volt sockets and a wireless charging pad.

Our test car also includes the optional 'Plus Package', which adds $5846 to the price. It bundles in a 15-speaker Burmester sound system, digital matrix LED headlights, heated and noise-insulating glass, augmented reality navigation and a digital key via the Mercedes-Benz app.

You’ll also find a few extra safety additions here, such as a lane centering aid, emergency steering assist, interior monitoring and external surveillance for added occupant protection and theft deterrence.

Overall, a bit more expensive but you get an impressive amount of features.

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 GLC200 is powered by a 2.0-litre, four-cylinder, turbo-petrol engine paired with a 48-volt mild-hybrid system, producing up to 150kW of power and 320Nm of torque. It’s the least powerful engine in the GLC range, but still manages to feel punchy when you need it to.

This all-wheel-drive variant is paired with a nine-speed automatic transmission. While it can feel a little twitchy at lower speeds when the auto start/stop system is active, it’s otherwise a smooth and well-matched combination for everyday driving.

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 GLC200 has an official combined cycle (urban/extra-urban) fuel consumption figure of 7.5L/100km and with its 62-litre fuel tank, you’re looking at a theoretical driving range of up to 826km which are solid figures for a family cruiser.

In real-world testing, I averaged 7.8L/100km, mostly around town with one longer trip thrown in. Overall, I’m pretty happy with its efficiency.

Mercedes-Benz recommends a minimum of 95 RON premium unleaded petrol for this model.

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.

Despite having the ‘baby’ engine in the range, the GLC200 doesn’t feel underpowered. Power delivery is generally quick, and there’s enough in reserve when you need to get up to speed or overtake. It’s responsive and confident in everyday driving.

That said, the auto start/stop feature is frustrating around town, especially at give way signs or roundabouts where you’re more likely to pause than come to a full stop.

It will cut the engine, and then when you want to accelerate, there’s a delay - sometimes even a little rollback. Not ideal, and definitely something that takes away from the otherwise polished drive.

The suspension hits a lovely balance, it’s forgiving but not floaty. You feel the road just enough to stay connected without it ever feeling harsh, which means the ride stays smooth and composed. It’s also a lovely highway cruiser, easily settling into long stretches with comfort and ease.

Visibility is solid, with minimal blind spots thanks to slim pillars, and the steering is responsive. It corners with confidence, too, with very little body roll, which isn’t always the case in a mid-size SUV.

Parking is straightforward thanks to a clear 360-degree camera system and park assist. The reversing camera turns with the steering wheel, which takes a moment to adjust to, but ultimately makes tight manoeuvres that little bit easier.

The GLC carries a maximum five-star ANCAP safety rating, based on testing conducted in 2022. It scored an excellent 92 per cent in both adult and child occupant protection, which gives plenty of peace of mind for families.

It’s also well-equipped when it comes to safety tech. There are 10 airbags in total, including a front centre airbag and side chest airbags for both rows; a solid showing in this segment.

Even without the optional Plus Package, the GLC comes loaded with safety features including blind-spot monitoring, side exit assist, lane departure alert, lane keeping aid and traffic sign recognition.

There's also driver attention warning, a 360-degree camera view, front and rear parking sensors, forward collision warning, intelligent seatbelt reminders and rear cross-traffic alert.

With the Plus Package, you add interior and exterior monitoring systems, along with something called 'Pre-Safe Impulse Side'; a clever feature that gently moves front occupants away from the doors if a side impact is imminent.

Autonomous emergency braking is also included, with pedestrian, cyclist, car and backover detection. It operates from 7.0-80km/h (or up to 250km/h for vehicles), which is slightly higher than most systems that usually activate from 5.0km/h.

In the back, there are ISOFIX child seat mounts on the outboard seats and three top-tether anchor points across the row.

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 GLC is backed by a five-year/unlimited kilometre warranty, which puts it on par with key rivals in this space. Servicing intervals are generous, too, at every 12 months or 25,000km. Great news if you rack up a lot of kilometres.

But the catch? Servicing costs are steep. Mercedes-Benz offers pre-paid servicing plans in three-, four-or five-year bundles, and the five-year package will set you back $7350. That averages out to almost $1500 per visit. Oof.

For comparison, the Audi Q5’s five-year plan is $3520, and BMW’s five-year 'Basic Service Inclusive' package for the X3 is $2475. So, while the GLC might win on features and finish, it definitely asks more of you when it comes to ongoing costs.