Mahindra Xuv 3Xo vs Skoda Octavia

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.

While other brands may have a higher profile, the quality of this Octavia RS proves Skoda deserves a greater share of the limelight. If you’re thinking about a primo mid-size sedan, or wagon, or even a medium SUV, this car combines satisfying performance with low-to-the-ground dynamics, immense practicality, top-shelf safety and solid value-for-money. It’s nicely put together using quality materials and the ownership package is class competitive. Do yourself a favour and add it to your new-car shopping list.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

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 current Octavia complies with Skoda’s sharp and angular approach to exterior design, with cool, jagged LED headlight clusters sitting either side of a blacked-out octagonal grille.

A brand signature is the bonnet shutting low and flush over the front guards to create a broad hood panel with longitudinal character lines running down its length. Similar creases flow confidently along the car’s flanks with 19-inch alloys filling the wheel wells nicely.

A smoothly tapering turret ends with a steeply raked rear screen on the sedan and wagon with angular LED tail-lights following a similar pattern to the headlights.

As well as the black grille, car-spotters should look out for the RS’s black finish on the window frame surrounds, roof rails (wagon only) wing mirrors and tailpipes as well as red brake calipers and RS sports bumpers front and rear.

Always a subjective call, but I for one think this car looks distinctive and contemporary while avoiding unnecessary flashiness.

Inside, the treatment is relatively reserved, with a grey through to black colour palette and high-quality materials, including soft-touch surfaces around the dash, doors and console, as well as ‘mouse fur’ and faux carbon sections on the upper dash.

The sports front seats are trimmed in a combination of synthetic leather and synthetic suede with quilted panels in the centre of the cushion and backrest. They feel as good as they look and are easy to get in and out of. Red contrast stitching throughout the interior dials up the racy tone.  

A sizeable central media touchscreen sits proud of the dash with the VW Group’s ‘Virtual Cockpit’ ahead of the driver configurable through multiple set-ups. And a smattering of dark chrome and brushed metal highlights (including on the pedals) finish off a beautifully executed interior.  

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.

Practicality is an area where Skoda comes into its own. At every turn the brand’s design and engineering teams have obviously kept day-to-day usability in mind with thoughtful tweaks to make life easier.

Some have become low-key famous like an umbrella slotted into the driver’s door (Rolls-Royce-style) and a small lidded rubbish bin in the driver’s door pocket.

But over and above that, the Octavia’s efficient packaging means in a car measuring just on 4.7m long there’s heaps of room up front for the driver and passenger, with lots of handy storage options. 

Aside from generous door pockets there’s a box between the seats with a padded lid (adjustable for height and length when in use as an armrest), a 15W wireless charging pad (with ventilation from below to keep devices cool), a big glove box (with pen holder), multiple cupholders, a cupholder insert able to hold a phone and/or some coins, numerous oddments trays and a sunglasses compartment overhead (not fitted with optional panoramic sunroof).

And in the back, sitting behind the driver’s seat, set for my 183cm height, there’s tons of leg and headroom with more practical design thinking on display.

For example, map pockets on the back of the front seats have a phone-sized slot stitched into them. There are pull up shades for each window, big bins in the doors with plenty of room for bottles and more, a pull-down centre armrest with fold-out cupholders (plus some oddments space), adjustable climate control vents plus a box on the floor for extra bottles and ‘stuff’ (removable if you need foot room for a centre passenger).

Power and connectivity runs to five USB-C sockets (two front, two rear and one near the rear-view mirror for dashcam duty) plus a 12-volt outlet in the boot. 

Speaking of which, head to the boot and the ‘plenty of room’ theme continues. With the 60/40 split folding rear seat upright there’s 600 litres of space in the sedan and 640 litres in the wagon. Lower the backrest and that number increases to 1555 and 1700 litres, respectively. That’s plenty, and more than the Mazda6.

The sedan and wagon feature anchor points for securing loose loads, extra storage bays behind the rear wheel wells, there’s a ski-port door behind the rear armrest, load divider rails in the sedan, remote release handles for the rear seat, bag hooks, a luggage net… the lot. 

The powered tailgate includes hands-free opening, there’s a space-saver spare under the floor and towing capacity for a braked trailer is 1600kg (750kg unbraked).

Priced at $58,490 for the sedan and $59,990 for the wagon, both before on-road costs, the Octavia RS has one competitor that meets the mid-size sedan and wagon criteria with cost-of-entry somewhere in the same ballpark. And that’s the current Mazda6 20th Anniversary Edition.

Pitched at $54,385, before on-road costs, for the sedan and $55,685 (BOC) for the wagon, the Mazda goes toe-to-toe with the Skoda on size, equipment and performance, although the ‘6’ leans more towards a premium rather than outright performance vibe. And the Mazda has recenetly been discontinued in Australia.

The Accord VTi-LX Hybrid ($59,900, drive-away) puts Honda in the sedan mix and if you’re considering a pure electric medium sedan, the BYD Seal Premium comes in at $58,798, before on-roads while the Tesla Model 3 Single Motor RWD sits at $54,900.

So, aside from the safety and performance tech, covered a little later, what can you bank on in terms of included features for a price tag giving $60K a serious nudge?

The answer is… heaps. Standard equipment on the Octavia RS includes three-zone climate control, adaptive cruise control, a 13-inch multimedia touchscreen, sat nav, 12-speaker Canton audio (with digital radio), a 10-inch configurable digital instrument display, a head-up display, sports front seats (heated with six-way power adjust, memory and massage function), heated rear (outboard) seats, a power tailgate (with hands-free opening), keyless entry and start and rain-sensing wipers.

There’s also ‘Intelligent Park Assist’, LED external lighting (including matrix LED headlights), 19-inch alloy rims, heated and power-folding exterior mirrors (with memory function), synthetic leather and synthetic suede trim, a flat-bottom leather-trimmed steering wheel, alloy finish pedals and rear privacy glass as well as wireless Android Auto and Apple CarPlay. 

Worth noting solid, metallic and pearlescent paint options (seven colours) are included as standard, with the single premium metallic ‘Velvet Red’ colour adding $770. 

That’s as much fruit as you should expect in this part of the market and a bit 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 Octavia RS is designated ‘195TSI’ which relates to the power output of its 2.0-litre, four-cylinder, turbo-petrol engine driving the front wheels through a seven-speed dual-clutch auto transmission.

It’s a fourth-generation evolution of the Volkswagen Group’s long-serving ‘EA888’ engine series, an iron block/alloy head unit featuring direct-injection and variable valve timing to produce (you guessed it) 195kW and 370Nm.

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 Octavia RS’s official fuel consumption figure on the combined (urban/extra-urban) cycle is 7.0L/100km, the 2.0-litre turbo-petrol engine emitting 159g/km of CO2 in the process (wagon 160g/km).

A start/stop function is standard and on a launch drive program through rural Victoria, covering several hundred kilometres’ worth of urban, B-road and freeway running we saw a (dash-indicated) figure of 6.9L/100km. With a 50-litre fuel tank on board, the RS’s theoretical range is around 715km.

In the city, expect an average in the high 8.0 range, which isn’t out of order for a 1.5-tonne sedan (1.6-tonne wagon).

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.

Skoda claims 0-100km/h acceleration in 6.4 seconds for the Octavia RS sedan and 6.5sec for the wagon and it feels willing with solid mid-range punch available. 

Peak power comes on stream up high (5250-6500rpm) but maximum pulling power is on tap from 1600-4500rpm, which is spot-on for urban running, easy highway cruising and safe overtaking.

A sports exhaust dials up a rorty note when pushing on and the seven-speed dual-clutch transmission proved quick and smooth on a launch drive covering mainly rural B-roads and some freeway sections.

Steering wheel-mounted paddles add extra involvement when you’re in the mood to push through some twisty stuff and select ratios manually.

Speaking of corners, suspension is by struts at the front and a multi-link arrangement (unique to the RS grade) at the rear, with an electronically controlled limited slip differential and ‘Dynamic Chassis Control’ standard. Ride height is 15mm lower than the standard Octavia.

DCC is Skoda code for an adaptive damper set-up and the system offers a ‘Comfort’ mode to help manage bumps, although it adds an air of floatiness on the open road. As the name implies, ‘Sport’ buttons everything down and road imperfections immediately make their presence felt. ‘Normal’ is surprisingly comfortable without upsetting the car’s balance and overall compliance. 

Standard rubber is 225/40 Bridgestone Potenza S005, providing a good grip vs comfort compromise, and the electrically assisted progressive rate rack and pinion steering is accurate, providing good road feel without being too sharp or ‘pointy’. Braking is by ventilated discs all around and the pedal is strong and progressive.

Under the heading of miscellaneous observations, engine, wind and road noise are modest, the grippy sports front seats remained comfortable over several hours behind the wheel, plus a relatively tight 10.4m turning circle and standard 360-degree camera view system make parking easy.  

The current Skoda Octavia was given a maximum five-star ANCAP rating following assessment in 2022. High scores in the adult and child occupant protection categories focused on the stability of the car’s passenger compartment in front offset, full front, side and pole impact crash tests.

For the 2025 model year, standard active (crash-avoidance) tech now includes turn assist and advanced driver fatigue detection, which is on top of auto emergency braking (AEB) operating from 5.0-250km/h (with car and ‘vulnerable road user’ detection plus junction assist), lane keeping assist (and emergency lane keeping), rear AEB, blind-spot monitoring, rear cross-traffic alert, a reversing camera, a 360-degree camera view, tyre pressure monitoring, front and rear parking sensors and more. 

If, despite all that, a crash is unavoidable the airbag count runs to 10 - dual front, front side, rear side, side curtain, front centre and driver's knee.

There are three top tether points for securing child seats across the second row with ISOFIX anchors on the two outer rear positions. 

That’s an impressive safety run down, as good or better than any category competitor.

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 Octavia is covered by Skoda’s seven-year/unlimited kilometre warranty, which is ahead of the mainstream five-year warranty pack, although a little short of some, like MG and Mitsubishi at 10 years.

Service is recommended every 12 months/15,000km and a four-year/60,000km service pack will set you back $2000, with 12 months’ roadside assistance topped up for another year after each trip to an authorised workshop.

That $500 per service charge is a solid amount but not outrageous for a premium, especially Euro, mid-sizer. For reference the Mazda6 20th Anniversary averages $552 per service over the same period.