Mahindra XUV 3XO vs Nissan Z

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 Nismo turns up the wick just enough to justify its $20K premium over the brilliant regular Z.

Visual changes inside and out are one thing, but with tangible boosts in performance, handling and braking – with no detriment to ride quality or comfort – as a result of properly engineered upgrades, the RZ34 version deserves its place in Nissan’s sports car hall of fame.

Note, though, that good as it is, the Nismo is also a potent reminder of how solid a foundation the standard Z also is… especially in manual gearbox guise.

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.

Reinterpreting a classic via retro styling isn’t always successful – hello, 2001 Ford Thunderbird ­– but what Nissan has achieved with the RZ34, given it’s a pastiche of several Z greatest hits from the ‘70s, ‘80s, ‘90s and today, is truly masterful design.

Take the cab-backward silhouette, long nose and short wheelbase; it somehow manages to deftly capture the spirit of previous Z generations, without looking like a bad caricature.

Points especially go to the stunning nose and tail treatments that evoke both the ‘70s 240/260/280 as well as the sadly long-forgotten Mid-4 II concept car of 1987.

Slightly longer than the regular model, the Nismo’s nose is meant to evoke the early ‘70s Japan domestic market Fairlady ZG, with the G denoting “Grand Nose”. Fun fact: Fairlady first appeared on the 1960 Datsun roadster as deference to the Broadway musical (and later Audrey Hepburn film, presumably) ‘My Fair Lady’.

Anyway, besides scraping speed humps and driveways, the Nismo’s elongated front bumper promotes improved engine cooling and better aero flow, as do the side sills, larger wraparound three-piece spoiler and redesigned rear bumper/diffuser. The wider-yet-lighter back wheels are 10mm wider. And a glossy red stripe runs along the underside like Anna Nicole Smith’s lipstick.

Does it all look better than the simpler, purer regular Z? No. But they perform better. And isn’t that the point of a Nismo?

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.

So, just as the exterior is an anthology of past Z car stylings, the same also applies inside.

A mishmash of new and old as well, they also marry together harmoniously – after you’ve bent and contorted yourself inside nice and snug, on the racy yet not-too-unforgiving set of Recaro bucket seats.

The Z’s signature sloping roof and rising window line; a trio of dials that have been a hallmark of the series since the 240Z, a thin three-spoke steering wheel; a physical hand brake and a pair of old-school seat base angle adjuster knobs just like in sports cars from 20 years ago betray the Nissan’s ageing DNA.

But they set the mood, like hearing a favourite old track, though one remixed by a contemporary DJ to a modern beat.

Which means that you’ll be able to view whichever artist you like through the 8.0-inch touchscreen, either via Bluetooth audio streaming, Spotify or some such app.

Easy to decipher and simple to navigate (though no imbedded GPS is fitted), the Z’s dashboard also offers the essential surround-view parking camera (given how limited vision is as you’re sat so low with not much glass to peer out through), amongst a host of vehicle functions. You’re also privy to extremely useful blind-spot alert thoughtfully placed inside the car by the mirror mounts, four cupholders if you count the door-sited ones and surprisingly generous storage. Practicality, thy name is Fairlady.

For lightness and sensible packaging, we understand why Nissan’s sports coupe is strictly a two-seater proposition – and certainly a roomy enough one for the lucky pair at that.

However, it’s a shame Nissan doesn’t offer a 2+2-seater option in the form of a pair of occasional jump seats behind, as per the old Datsun days, as there seems to be just enough space for smaller folk – though as a pair of shelves, that area did prove very useful during our week with the Nismo.

Issues? Along with a sheer lack of grace entering and exiting the Z, poor overall vision and 350Z-era switchgear that are now old enough to drive themselves, finding the right driving position eluded this particular 178cm tester. The seats do a great job keeping you firmly fixed in place, and of course the wheel tilts and telescopes, but those pair of knobs were forever being twirled and fiddled with.

Oh, and simultaneously unlocking and opening the doors was also confounding, due to exterior door handles and pressure sensor not designed for Homo Sapien hands.

Further back, and as in the two previous generations Zeds, a brace bisects the luggage area. Rated at 241 litres VDA, it is wide and flat but a wee bit shallow. At least it adds another level of practicality and is big enough for those weekends away.

There’s no cover (though seeing what’s inside isn’t easy) and no spare wheel of any size is fitted.

Meanwhile, on the other side of the Nismo…

Nismo is short for Nissan Motorsport. It’s like what AMG means to Mercedes or HSV was to Holden. Which means, of course, that Australians love this sort of thing.

Last year, as limited editions, the first 100 Z Nismos sold out in under an hour, according to Nissan. Now it’s back more permanently, still from $94,000 before on-road costs, but without quite the exclusivity.

But, don’t worry. You still get the Nismo body kit and leather/Alcantara-clad cabin treatments, stronger performance and track-focused chassis upgrades, which include extra bracing, sharper steering, beefier suspension, bigger brakes and GT-R-spec wider wheels, compared to the regular Z. More on the engineering changes later on.

There are also Recaro sports seats, Nismo-branded digital instrumentation and steering wheel, additional drive modes and red trim highlights.

These come above the regular Z items like keyless entry/start, an 8.0-inch touchscreen, surround-view reverse camera, (wired-only) Apple CarPlay/Android Auto, Bluetooth connectivity, an eight-speaker Bose premium audio, active noise cancellation tech, dual-zone climate control, artificially amplified exhaust note and wider-yet-lighter 19-inch alloy wheels.

Note, however, that going Recaros means ditching the regular Z’s seat heating and electric adjustment including lumbar support. And there’s no spare wheel in either grade… just a tyre-repair kit. Boo.

For your $100K-driveaway, from an equipment perspective anyway, the Nismo does stretch the value argument almost to breaking point, so it’s a good thing that the Z still looks so good. And there’s lots of beautiful engineering underneath that pretty skin too.

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.

Nissan sure knows how to make a great six-cylinder engine.

The Nismo’s internal combustion engine in question is the VR30DDTT – a twin-turbo V6 making four per cent more power and around 10 per cent more torque compared to the one found in the regular Z.

Power jumps 11kW and torque a handier 45Nm to 309kW @ 6400rpm and 520Nm between 2000rpm and 5200rpm respectively, providing extra punch as well as a slightly superior power-to-weight ratio of around 184kW per tonne.

That’s up 2kW/tonne, despite the Nismo gaining around 50 kilos, to 1680kg.

This has been possible thanks to extra turbo boost, revised ignition timing, improved cooling systems and updated engine management software.

Driving the rear wheels is a Mercedes-Benz based nine-speed torque-converter auto. Upgraded and retuned for track use, it includes a Sport+ mode providing speedier shift responses. Aided by the new launch control function, we managed a tidy 4.5 seconds from standstill to 100km/h.

Sadly, though, there’s no manual option as per the regular Z.

What else is unique here? Underneath, the platform might date all the way back to the 350Z of 2003, but Nismo has really worked some of its magic.

Along with the retuned dampers, everything else has been stiffened up – including the anti-roll bars, springs, bushes and even the steering rack mounts – to help deliver more controlled and linear steering. There’s extra underfloor bracing at the front, centre and rear of the car, thicker brake rotors and model-specific Dunlop SP Sport Maxx GT600 tyres that are wider at the back, on gloss-black RAYS alloys.

Continuing to use a double-wishbone front and multi-link rear suspension set-up, the Z’s front/rear weight distribution is 56/44 front/rear.

Now, the Nismo was our favourite version of the previous 370Z by some margin. How does it all square up in RZ34 guise?

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.

Not surprisingly, the Z Nismo needs to drink from the 98 RON premium unleaded petrol fountain.

Nissan reckons owners should expect to average 10.4L/100km (for 242 grams per kilometre of carbon dioxide emissions) on the combined cycle (and 15.0 and 7.7 L/100km for the urban and extra-urban ratings respectively.

This figure is almost half a litre worse than the non-Nismo Z’s 9.8L/100km result, but still substantially better than the six-speed manual base grade’s 10.8L, despite the latter being some 33kg lighter.

With a sizeable 62L tank, you might be able to average just under 600km between refills.

For the record, we achieved 11.9 litres per 100km in a mix of urban, freeway and performance driving which is not too bad at all given how often we fanged this thing.

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.

Nissan does plenty of things really well, and the Nismo is no exception.

Firing up the VR30DDTT 3.0-litre twin-turbo V6 is also a reminder of how brilliant the brand’s six-cylinder engines are. They tingle all the right sensory areas, starting with the baritone rumble at idle.

What a portent of what’s to come!

Nismo’s massaging of the engine, combined with upgraded clutch packs and a retune of the nine-speed auto’s software, results in stronger, hungrier and angrier acceleration, no matter which of the three driving modes you’ve selected. Even in Normal, the Nissan leaps off the line. In Sport, its appetite for speed is palpable. In Sport+, this thing is eating up the tarmac. Somehow, in an EV era where 4.5s to 100 is ho-hum, the (electronically enhanced but who cares) guttural exhaust bellow seems to amplify the action and thrills.

And spills. For five of our seven days together, the heavens poured. Now, in Normal mode, the Nismo was as benign and controlled as you’d hope in wet conditions, the driver-assist tech metering out just enough torque and braking to seamlessly keep the car humming along. Ever-present but always nuanced, they’ll help make your commute a safer and more relaxing one.

Selecting Sport loosened things up markedly, with the driver needing to be ready to counteract with steering, seating and throttle, though still with a safety net to keep the car from going totally out of whack; Sport+, meanwhile, is not for amateurs or the distracted. This is serious, tail-wagging waywardness that should only be fully explored with experience and care.

Later in the week, Launch Mode in Sport+ on cold but dry bitumen also requires super concentration, as we discovered attempting to extract the fastest acceleration time. Sideways in a straight line at 100km/h-plus is not for the faint hearted.

Beyond all-out performance and drama, the Nismo soars with weighty yet linear and precise steering, resulting in satisfying, hunkered-down handling that is the hallmark of a great sports car. Really tight turns can be taken at impressive speeds, but there’s about 1.7 tonne of muscle to manipulate, so the real fun can be found blasting along a snaking set of more open corners, where the Z’s inherent thrust, poise and grip come into play, all to the symphony of that bi-turbo V6.

That the suspension can feel both firm and supple at the same time is another arrow in the Nismo’s bow.

Nissan isn’t pretending this is anything but a rousing and rapid grand tourer with track aspirations, so the fact there’s also comfort and sophistication to be enjoyed just shows the sheer bandwidth of this particular Z.

Downsides? There’s always a wall of sound, be it mechanical or noise intrusion from the rubber and/or bitumen. The Nismo is rarely quiet. The extended front spoiler seems to summon up speed humps and bumps you never knew existed. The adaptive cruise control’s inability to resume in heavy stop/start traffic betrays this car’s 350Z-era tech. And the lack of a manual transmission, we reckon, is a missed opportunity for an even greater degree of interactive sports car driving.

Still, the Nismo delivers exactly what the brand promises, and continues to improve a firm favourite for speed and drama.

But the gap between Nismo and regular model is smaller than the one that existed in the preceding 370Z, which means that – if $100K driveaway is too steep – you’re already driving something elevated in the standard Z. Particularly if you yearn for a manual.

It’s all good.

There is no Euro NCAP or ANCAP crash-test rating for the Nissan Z Nismo

Standard safety features include AEB with pedestrian detection (though no operating parameters could be found about this system), 'Predictive Forward Collision Warning', lane departure warning, blind spot warning, rear cross-traffic alert, high beam assist, tyre pressure monitoring sensor, traffic sign recognition and adaptive cruise control with full-stop (but no resume) functionality.

What’s missing? There is no active lane-keep assist tech to nudge you into line, and you won't find parking sensors nor a front-centre airbag.

But the Z does have dual frontal, side chest and head-protecting airbags, a surround-view camera, anti-lock brakes with electronic brake-force distribution and brake assist, stability control, traction control, hill-start assist, front and rear parking sensors, LED headlights with light sensitivity and rain-detecting wipers.

There is also a child seat tether point on the passenger seat, but the Nismo ditches the other Z’s ISOFIX alternative.

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.

Your wallet’s pretty secure as well.

Like all Zs, the Nismo is subject to a warranty period of five years with unlimited kilometres, while service intervals are fixed at every 12 months or 10,000km – whichever occurs first. There is also five years of roadside assistance.

Nissan also provides pre-paid maintenance plans that can save up to $245 over three years, as well as capped-price servicing. At the time of publishing, the capped-price service appointments cost between $347 and $950 depending on the year of ownership.