Mahindra Xuv 3Xo vs Volvo V40

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.

I’m going to miss this V40 like I do my old phone, and for many people this hatch really could really be close to perfect: excellent safety equipment, enjoyable to drive, cool prestige styling and some lo-fi buttons and dials that are far easier to use than swiping a screen. This is your last chance to own an old, new V40.

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 V40 has been around forever (well, since 2012) but somehow it still looks great – it’s the Nicole Kidman/Rob Lowe of cars.

The thing is Volvo’s new-generation vehicles now have a different look, which will be worn by the next V40, and that seriously dates the current car.

Sure, in 2016 this V40 was updated and given 'Thor’s Hammer' LED running lights like the new-gen cars, but it’s clear the V40 has the old look.

The question is: are you the type of person who would be annoyed if this time next year somebody in the latest ‘new-look’ V40 pulled up beside you at the lights. If yes, then stop reading now… we’ll just wait a moment for you to leave.

Okay, it’s just us now. We don’t need those shallow people anyway, right? They don’t know what they’re missing out on – like an interior with lots of buttons. I’m serious the centre console actually has a numerical key pad for making phone calls. There are also lots of dials for the climate control and seat warmers and for the auto parking system.

All of these buttons will be replaced by a sexy, large touchscreen in the new V40, which will make the screen in the current one look like the slot in Ned Kelly’s helmet. Wait, don’t leave. See, I’ve road tested the new X60 and I missed just flinging a dial to make the cabin’s temperature cooler, instead I had to go into the screen’s menu, find the climate functions, and then slide my finger down a little digital ladder until I found 21 degrees. It’s a frustrating design and potentially distracting in that it takes your eyes off the road longer than twisting a dial does.

I’ll stop the rant. So, yes, the interior of the new V40 will look so sleek and minimalist, decluttered of its buttons and sporting a large vertical screen, but there are functional advantages to keeping it simple.

That said the current V40’s cabin is still special and elegant. The Inscription grade brings milled aluminium trim to the centre console and that leather steering wheel. Volvo owners would be aware of that solid, well-built feeling with a high-quality fit and finish.

What are the V40’s dimensions? Compared to the Audi A3 Sportback the V40 is 59mm longer at 4369mm end-to-end, 72mm wider at 1857mm across, and 5mm shorter in height at 1420mm.

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.

Umm, next question. Okay, the V40 is not very practical. Those small rear doors don’t open wide, making entry and exit potentially difficult for older or less limber folks.

Legroom in the back is limited – although at 191cm I can just sit behind my driving position and headroom is getting tight, too – but still there’s just enough room for me.

The V40’s cargo capacity is 335 litres and that’s smaller than the A3 Sportback’s boot space (380 litres) and the BMW 1 Series’s luggage capacity (360 litres). The aperture of the boot itself is also small.

There’s even a practicality issue with the driver’s doorway – that windscreen is so slanted that the A-pillars either side of it are hard to dodge for taller people when trying to get in, but especially when climbing out.

The Volvo V40 in the mid-range Inscription grade with the T4 engine lists for $43,990. When I road tested it for the first time five years ago (in 2013) it was $45,990, and it’s a better car now than it was then, with more standard features.

The list includes a 7.0-inch touchscreen with reversing camera, sat nav, eight-speaker sound system with CD/DVD player, digital radio, and internet connectivity – but no Apple CarPlay or Android Auto. 

Also standard are front and rear parking sensors, an auto parking system, plus power adjustable driver and front passenger seats. There’s also leather upholstery, leather-trimmed steering wheel, dual-zone climate control, 17-inch 'Sarpas' alloy wheels and proximity key entry.

The safety equipment list is impressive, too – you can read all about what’s looking after you in the safety section below.

If you wanted a model comparison, then also look at the BMW 1 Series 18i M-Sport for $43,890 or the Audi A3 Sportback 2.0TFSI for $46,400 or Mercedes-Benz A200 for $44,300.

Also, don’t forget that because the current V40 is due to be replaced, dealers will be keen to move their stock to make way for the new one and that means you should be able to get yourself a bargain.

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 V40 line-up has three petrol engines to pick from and the T4 sits right in the middle between the most powerful T5 and the least grunty T3. A 2.0-litre four-cylinder turbo-petrol engine the T4 makes 140kW/300Nm and delivers it through a smooth six-speed automatic.

That engine is up there with my favourite things about the V40 Inscription. The power figure isn’t huge but 300Nm of torque provides decent shove. A 0-100km/h time of 6.9 seconds isn’t at all slow.

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.

Volvo says the V40 should use 5.6L/100km of premium unleaded fuel over a combination of open and urban roads.

If you’re only going to stick to urban areas you’ll see higher usage – our trip computer was reporting an average of 14.9L/100km on a regular peak hour commute, but motorways drop the figure to about 8.0L/100km.

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.

That grunty 2.0-litre engine teamed with that smooth six-speed transmission goes a long way to making the V40 Inscription T4 an enjoyable car to drive.

Good handling and a fairly comfortable ride complete a prestige and easy-to-drive package that’s only really let down by heavy steering and slightly noisy suspension. That heavily sloped windscreen does present some visibility issues, but it’s not a deal breaker.

First tested in 2012, the V40 the achieved one of the highest-ever scores awarded by EuroNCAP and saw ANCAP give it the maximum five-star rating in Australia. Back then the V40 came standard with advanced safety equipment only making it onto cars these days such as AEB, it also had the world’s first pedestrian airbag, which inflates to protect people from hitting the A-pillars and windscreen.

The 2017 update added blind-spot warning as standard on the Inscription grade. A $1300 option package brings Lane Departure Warning, Lane Keeping Aid, Active High Beam Control, Forward Collision Warning and Road Sign Information. A $3000 package brings adaptive cruise control, collision warning with full auto braking, plus pedestrian and cyclist detection.

ABS, EBD, traction and stability control are of course there to step in should you need it, too. You’ll find three top tether and two ISOFIX points in the second row for child seats. A space-saver spare is under the boot floor.

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 V40 Inscription is covered by Volvo’s three-year/unlimited kilometre warranty. Volvo has two capped-price servicing programs – the $1600 Smartcare for three years and the $2950 Smartcare Plus for five years.