What's the difference?
Mahindra has long been known as a tractor brand and a maker of rugged utes and SUVs, but it’s now dipping its toe into Australia's light SUV segment.
The XUV 3XO marks a further shift in the Indian brand’s local focus from rural and regional to metropolitan.
This tiny SUV goes up against some stiff competition including the Chery Tiggo 4, Hyundai Venue and Kia Stonic, among others. However, the Indian-made SUV holds a specific title that’ll make it stand out among the crowd.
Even amid the near-constant discussion of utes in Australia, 2025 has been a momentous year. We’ve already seen the arrival of the BYD Shark 6, Ford Ranger PHEV and Kia Tasman. Now comes the latest new contender looking to shake-up the establishment - MG.
The formerly-British-turned-Chinese brand has made no secret of the fact its Australian aspirations involve challenging Toyota, Ford and Mazda at the top of the sales charts. To achieve that it knew it needed a ute and needed one quickly.
Luckily for MG, it had a way to shortcut the development and get a new ute into the market in next to no time. It was called the LDV Terron 9, an upsized ute from the commercial vehicles division of SAIC, parent company to MG.
In a throwback to the days of ‘badge engineering’ (if you don’t remember, kids, google ‘Toyota Lexcen’ or ‘Holden Apollo’), the LDV swapped badges and became the MG U9. To be fair, there are some key technical differences that we’ll explain, but the majority of the two vehicles are shared, saving time and money to help MG enter the ute contest as quickly as it could.
The LDV arrived in Australia a few weeks before the MG, but the arrival of the U9 marks a key moment, not only for the ute market, but also the brand itself. MG Australia boss Peter Ciao admitted this is a watershed moment, when MG stops focusing on small vehicles like the MG3, MG4 and ZS and takes on the literal big boys of the car industry.
Before we dive into the details, it must be noted at this point the cars we tested were pre-production examples and while mechanically the same as the vehicles which will ultimately arrive in showrooms, the trim and equipment was not the final version.
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.
I can’t give you a definitive verdict on the U9 based on our limited time behind the wheel. However, what I can say with certainty is MG is serious about making its first ute a success. The price alone demonstrates how motivated the brand is to win buyers over. Undercutting the likes of the Ranger and HiLux with a physically larger ute is a strong opening move from MG.
The clever features, spacious cabin and smart technology will also help to win over buyers, as will the choice of a conventional diesel engine. But none of that guarantees success. As the dominance of the Ford and Toyota demonstrates, ute buyers are loyal and drawn to the most popular options, so MG will need to fight hard for every sale to ensure the U9 isn't lost in the increasingly crowded ute market.
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.
While the fancy tailgate step and the Smart Hatch are the most obvious changes between the LDV and MG utes on the surface, arguably the biggest change is what’s underneath. MG has opted to buck the conventional leaf spring, live rear axle set-up and has instead opted for a more SUV-like independent, multi-link rear suspension.
This explains why such a big ute has a sub-one-tonne payload, but it speaks to MG’s aspirations to try and lure ‘urban’ ute buyers. There is no doubt a large group of ute owners who don’t go off-road regularly and instead use their vehicle as a family transporter.
To that end, opting for a more SUV-like suspension set-up should be beneficial to its on-road manners and unladen ride. Unfortunately, as mentioned earlier, we couldn’t test that because our drive was limited to unsealed roads. But it was enough for us to get an initial impression of how the U9 drives and the early signs are positive.
The engine sounds like a traditional ute, with the gruff diesel ‘chug’ and smooth pulling power. The towing test provided was well below the 3500kg maximum rating, only 1500kg, so naturally the U9 has little trouble pulling the horse float along.
As for the ride on the suspension, it's fairly well composed on a gravel road and offers no obvious signs of struggle on more challenging muddy trails and creek crossings. So there are promising signs that the U9 should be able to hold its own against the more established ute contenders.
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.
That SUV-like interior and the larger dimensions make for a very pleasant cabin with loads of space. We didn’t get too much time to experience the multimedia system, but the 12.3-inch touchscreen looks good and operates smoothly, while the inclusion of large physical buttons for the air-conditioning and audio system is a positive for those who value ease-of-use.
There’s a generous amount of room up front, but it’s the back that really impresses. Unlike the sometimes cramped back seats in a conventionally-sized dual-cab ute, the U9 has plenty of legroom and headroom for four or even five adults to fit in comfort.
There’s also plenty of small item storage, including a wireless charging pad (but only on the high-grades) and USB outlets just ahead of the gear selector.
As for the tray out the back, that is so important to ute buyers, it measures 1600mm by 1600mm at the top, but narrows to 1230mm between the wheel arches. Despite its big size, the payload is only rated at 870kg for the Explore, 835kg for the Explore X and just 770kg for the Explore Pro.
However, MG has introduced a party trick no-one else, not even LDV offers, in the tray. At the press of a button, the rear tailgate opens and then with another press a section of the tailgate drops down, revealing a step. While not the quickest way to climb into a tray, it might be the nicest and is definitely the easiest this reviewer has experienced locally.
The even more elaborate party trick the U9 offers is what MG calls a ‘Smart Hatch’. This allows for the rear glass to retract and the bottom of the cabin to recline into the interior, creating a direct connection between the tray and the cabin for especially long items. While MG is, rightfully, very proud and keen to promote the Smart Hatch, it must be noted it is only available as an option on the Explore Pro and costs $5500 (which is nearly 10 per cent of the total cost of the car) so you’ll want to really need the extra space.
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.
By not having to worry about developing its own ute from scratch, MG was able to focus on its key selling strength - price. MG has a reputation for its aggressive pricing strategy in Australia, trying to win over buyers with the most affordable or best value products in any given market sector.
To that end, the MG U9 range begins at just $52,990, drive-away, for the U9 Explore, undercutting not only the Terron 9 Origin (from $53,674, drive-away), the Ford Ranger and Toyota HiLux dual-cab pick-up ranges. It's inline with the similarly-sized GWM Cannon Alpha (from $51,990 drive-away).
For $52,990 the U9 Explore comes with 18-inch alloy wheels, side steps, painted tub liner, synthetic leather seats, keyless entry and ignition and a six-speaker stereo with digital radio and wireless Apple CarPlay/Android Auto.
Next up in the range is the U9 Explore X, which starts at $55,990, drive-away. For the extra money you get 19-inch alloys, a cargo slide rail with a hook in the tray, heated front seats, acoustic glass, vehicle app connectivity, voice command, a wireless smartphone charging pad, satellite navigation, Amazon music and the ability to receive over-the-air updates.
The flagship Explore Pro is priced from $60,990, drive-away, and has 20-inch alloy wheels, an eight-speaker JBL sound system, a panoramic sunroof, suede headlining, heated outboard rear seats and the clever tailgate step we’ll detail later.
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.
MG has plenty of hybrid knowledge, but has opted to keep it simple for the U9. It’s powered by a 2.5-litre, four-cylinder, turbo-diesel engine, which should be popular with the ute crowd.
It produces a solid, if unspectacular, 160kW and 520Nm, enough for it to offer a 3500kg maximum braked towing capacity, which is also something that should be popular with potential buyers.
The engine is paired with an eight-speed (torque-converter) automatic transmission and 'Super Select' 4WD system capable of sending drive to all four wheels.
Like so many new brands in the ute market, MG was keen to highlight that the transmission is built by ZF and the 4WD system is from BorgWarner, both brands with a long history in their respective areas.
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.
As all three variants are powered by the same engine and all return the same fuel economy. Rated at 7.9L/100km on the combined (urban/extra-urban) cycle.
As our test drive was limited to off-road only we can’t assess its real-world usage, so that will need to wait until we can spend extended time behind the wheel.
Notably, with an 80-litre fuel tank the U9 has a theoretical driving range of more than 1000km, which is great for anyone looking to take their ute on a long road trip.
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.
In terms of safety, the U9 has all the usual features you should expect of any new car in 2025. This includes airbag protection for all occupants, plus active safety features including autonomous emergency braking, adaptive cruise control, lane keeping assist and a host of others.
That’s enough for it to achieve a maximum five-star Euro NCAP score and MG expects the same from ANCAP. However, it must be noted Euro NCAP crash tested the LDV e-Terron 9, the electric version of the ute, which obviously has no diesel engine in the front of the vehicle and instead a smaller electric motor and a storage space.
It also worth noting even on our limited, off-road only drive, the driver attention system seemed very sensitive, which suggests better calibration is needed. So we’ll reserve final judgement on the other systems until we can fully experience them, too.
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.
This is a crucial area for many ute buyers, so MG has tried to make itself as appealing as possible to discerning pick-up prospects.
However, the U9 is covered by MG’s seven year warranty, not the newer 10 year coverage from its passenger vehicles. And even then, that requires you to service the vehicle via an authorised MG dealer for the full seven years to apply.
However, this only applies to non-commercial use vehicles, so while tradies will be covered, fleet buyers are stuck with a five-year warranty.
Over the first five years, if you spend the $2395 capped price costs, you’ll get the extra two years of coverage. The first service is due after 10,000km, but the rest are at 12-months/15,000km.
MG has also worked on expanding its dealer and servicing network to respond to some growing pains and ensure owners aren’t burnt and are more likely to return for their next MG. There are currently 120 MG dealers across Australia with plans to gradually expand that footprint into regional areas following the launch of the U9.