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.
The small van segment (Under 2.5-tonne GVM) is one of the smallest in Australia’s light commercial vehicle market, as it currently caters for only three contenders, the Volkswagen Caddy Cargo, Peugeot Partner and Renault Kangoo.
Although total sales in this category are a fraction of those achieved in the mid-size (2.5-3.5-tonne GVM) van division, these compact commercials are ideal for buyers not requiring the big one-tonne payload ratings and cavernous load volumes of their larger siblings.
Petrol and diesel-powered models are typically equipped with small displacement engines offering excellent fuel efficiency, combined with cabin ergonomics and driving dynamics which are the most car-like of any LCV offering.
French manufacturer Renault released its third generation Kangoo range in Australia in 2024, comprising a mix of petrol and full-electric variants. We were recently handed the keys to one of the petrol models to see if it has what it takes to win costumers in this three-way fight.
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 latest petrol-powered Kangoo has the pricing, practicality and performance to win friends in Australia’s small commercial van class. If you can afford an option pack or two, like those fitted to our test vehicle, it's even better.
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.
Our test vehicle is less than 4.5 metres long (4488mm) and well under 2.0 metres in width (1859mm) and height (1830mm), making it ideal for those with either limited parking space and/or needing to access space-restricted areas in their working roles.
Its compact 2716 wheelbase results in an 11.3-metre turning circle. This is larger than you might expect, given it’s no tighter than Toyota’s shortest HiAce mid-sized van.
However, it’s also line-ball with its small van rivals, which highlights the restrictions in steering lock shared by front-wheel drive vehicles compared to rear-wheel drivers like the HiAce.
The Kangoo features MacPherson strut front suspension and its rear suspension uses torsion bar primary springing supplemented by a pair of secondary coil springs for carrying heavy loads. There’s also rack and pinion steering and a quartet of disc brakes.
Bodywork and wheels confirm its no-frills work focus, with unpainted dark grey plastic prominent on the hubcaps, front/rear bumpers and along the sides where bumps and scrapes usually occur.
It has tidy styling for a commercial van, including the sharp cabin design that combines a tasteful blend of grey and satin chrome hard surfaces with the practicality of wipe-clean fabric upholstery and vinyl floors.
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.
Our test vehicle’s 1447kg kerb weight and 2010kg GVM results in a useful 563kg payload rating.
It’s also rated to tow up to 1500kg of braked trailer and with its 3510kg GCM (or how much it can legally carry and tow at the same time) it can carry its maximum payload while towing its maximum trailer weight for optimum versatility.
Cargo bay access is through asymmetric rear barn-doors which can be opened to 180 degrees for forklift and loading dock access, or sliding doors on each side with (according to our tape measure) 625mm openings. The walls and doors are lined to mid-height and there’s internal lighting.
The cargo bay’s load volume is a competitive 3.3 cubic metres and with more than 1.8 metres in length, almost 1.6 metres in width and more than 1.2 metres between the rear-wheel housings, it can easily swallow one standard Aussie pallet or two Euro pallets.
The load floor, which does not include a protective liner as standard equipment, offers a choice of six load-anchorage points.
The solid bulkhead doubles as a sturdy cargo barrier and insulates the cabin from cargo bay noise, most of which comes from the tyres emanating through the rear-wheel housings.
Given its compact dimensions, the cabin is surprisingly spacious and accommodating even for someone my height (186cm), thanks to front doors that open to a full 90 degrees, generous leg and elbow room plus a high roof relative to the seating position that adds to the airy feel.
Storage includes a large-bottle holder and bin in the base of each door, single glove box, full-width overhead shelf, large open tray in the centre of the dash-pad and (in standard form at least) a centre console with two cupholders and trays for small items.
However, given our test vehicle is equipped with the optional Business Pack, the standard console is replaced with a more elaborate version, which in addition to a pair of cupholders has a wireless phone-charging dock up front and a box with hinged lid at the back.
There’s also a sizeable clamshell-lid compartment set into the dash-pad ahead of the driver, which includes a smartphone holder on a stalk that can be easily moved to either side of the compartment depending on driver preference.
Our only criticism is the lid on the optional console box. Although it’s been thoughtfully angled downwards at the front to provide the driver with comfortable elbow support, there’s no mechanism on the hinge to hold it in the open position.
This makes it awkward to access the box, as the angled lid naturally wants to keep closing on your hand, so a detent in the hinge would be useful.
And, in a similar context, we’d also like to see hinge detents (or struts) to firmly hold the rear barn-doors open in their 180-degree positions, given their propensity to slam shut if hit by wind gusts during loading/unloading.
This can potentially injure the operator, so these devices should be standard issue, not only for Kangoos but all barn-door vans.
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 Kangoo petrol range is available in SWB (short wheelbase) with a choice of six-speed manual or seven-speed dual-clutch automatic, plus a LWB (long wheelbase) model available only with the auto.
Our test vehicle is the SWB auto, powered by the same 1.3-litre four-cylinder turbocharged engine shared by all petrol models, for a list price of $41,990.
That figure sits comfortably between petrol rivals in the small van class, including the Peugeot Partner Pro Short ($39,990) and Volkswagen Caddy Cargo TSI220 ($43,990).
Our example has been enhanced with genuine accessory carpet mats ($167) plus some desirable options including 'Highland Grey' metallic paint ($800) and the ‘Peace of Mind Pack’ ($1500) comprising blind-spot monitoring, front/rear/side parking sensors, driver attention alert, high-beam assist, navigation, overspeed prevention and traffic sign recognition.
It’s also equipped with the ‘Business Pack’ ($3000) which adds tyre pressure monitoring, hands-free key card, body-coloured external door handles, climate control, adaptive cruise control, centre console with armrest and storage, wireless smartphone charger, extra tinted rear barn-door glass, front fog lights, LED headlights and a leather-wrapped steering wheel.
This is in addition to its work-focused standard equipment list which includes 16-inch steel wheels and 205/65 R16 tyres with a full-size spare, plus auto-door lock when driving, rain-sensing wipers, a reversing camera and more.
The two-seater cabin, which is separated from the cargo bay by a solid bulkhead, is equipped with an electronic parking brake, two USB ports, two 12-volt sockets, a colour 4.2-inch driver’s info display and a multimedia system controlled by an 8.0-inch central touchscreen with wireless Apple CarPlay/Android Auto connectivity and smartphone dock.
In addition to its option packs, Renault also offers numerous single options including a 200kg GCM upgrade, different cargo bay sliding-door configurations, a smart digital rear view mirror and more.
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 Euro 6 emissions-compliant 1.3-litre turbocharged four-cylinder engine produces 96kW at 5000rpm and 240Nm at 1600rpm.
Its seven-speed dual-clutch automatic provides the option of sequential manual-shifting plus three drive modes comprising 'Normal', 'Eco' and 'Performance', which alter the shift calibrations to optimise engine efficiency in each setting. They are selected using a button on the dash.
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.
Renault claims average combined consumption of 6.4L/100km and the dash display was showing 7.8 when we stopped to refuel at the completion of our 254km test, of which about one third of that distance was hauling more than half a tonne of payload. We also had the annoying engine auto stop/start function switched off for the duration.
Our own figure, calculated from fuel bowser and tripmeter readings, was higher again at 8.6 which was still within the usual 2.0-3.0L/100km discrepancy between official and ‘real world’ figures.
So, based on our consumption number, you could expect a ‘real world’ driving range of around 630km from its 54-litre tank which should only be filled with premium petrol (min 95 RON).
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.
Apart from the huge and unavoidable solid-walled blind-spot over the driver’s left shoulder, the Kangoo feels more like a nippy small car than a commercial van.
The driver’s seat has no adjustments for lumbar support or base-cushion rake and the backrest angle is restricted by the bulkhead close behind it, but there’s still enough room even for tall people to find a comfortable driving position.
Its leather-rimmed wheel feels nice in your hands and the unladen ride quality is excellent, with nicely weighted and responsive steering feel, reassuringly strong braking and suspension settings that combine good handling response with supple bump absorption.
The turbocharged 1.3-litre four is a refined and willing performer, albeit with softer response below its peak torque band which is tapped at 1600rpm.
From there it happily spins its way to maximum power at 5000rpm, with the dual-clutch auto getting the best out of this engine in all drive modes, when either unladen or hauling a heavy load.
Its diminutive size and agility are well suited to zipping through heavy city traffic, squeezing into tight loading zones or negotiating narrow and crowded city lanes for delivery work.
Manual sequential-shifting allows more direct control if preferred when hauling heavy loads, or for those simply wanting a more engaging drive experience (particularly in Performance mode).
It's impressively quiet up to 80km/h in city and suburban use, but at highway speeds tyre noise becomes more intrusive (particularly on coarse bitumen surfaces) and some wind noise is evident.
The engine requires only 2000rpm to maintain 110km/h cruising speeds and the (optional) adaptive cruise control is resolute in maintaining its speed settings, even on long and steep descents.
To test its GVM rating, we forklifted 415kg into the cargo bay which with driver equalled a payload of just over half a tonne, or about 50kg under its legal limit.
The rear suspension compressed 55mm, which engaged the long cone-shaped jounce rubbers positioned inside the rear coil springs to provide a second stage of load support.
The Kangoo coped commendably with this payload, floating smoothly over bumps and with minimal effect on handling, braking and engine performance.
It also made light work of our 13 per cent gradient, 2.0km-long set climb at 60km/h, quickly self-shifting down to fourth gear to easily reach the summit.
Engine-braking on the way down was not as robust, as you’d expect from such a small engine with more than half a tonne on its back, but still within expectations for small vans.
Our only gripes are the absence of a full-width driver’s left footrest and that the thick panel separating the bulkhead windows almost completely blocks the central mirror’s view through the LHS barn-door. You can option a smart digital mirror with rear-facing camera to resolve this issue, but that’s another $800.
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 Kangoo petrol is backed by a five year/200,000km warranty, whichever occurs first. There's also complimentary roadside assist for up to four years/120,000km, with annual renewals available after that.
Scheduled servicing is every 12 months/30,000km with capped-pricing for the first five scheduled services totalling $2385, or an average of $477 per year.