What's the difference?
Just in case attacking Australia's crowded SUV market with a virtually unheard of Indian brand wasn't a high enough hurdle to leap over, Mahindra had made its task even harder - think a Bollywood version of Mission Impossible - by launching its XUV500 SUV here with a diesel engine (which nobody wanted) and a manual gearbox (which few could even remember how to use).
Fortunately, it fixed one of those issues late in 2016, finally adding an automatic transmission to the line-up. And now, at long last, it's fixed the other.
This, then, is the petrol-powered XUV500 SUV. And, on paper at least, it's the most sense-making Mahindra to date.
For one, it's a ferociously cheap way into a new seven-seat SUV. For another, it's pretty well equipped, even from the base level. There's a long warranty, an equally long roadside assistance offering, and there's capped-price servicing, too.
So, should the mainstream SUV players be looking over their shoulders?
Spoiler alert: no.
KGM (formerly SsangYong) has revised its Musso range for 2026 with some new features and revised styling throughout the Australian line-up, as well as a name-change for this grade: the Advance which used to be the Adventure.
The updated Musso is a dual-cab 4WD ute with high and low-range gearing, an auto-locking rear differential and 3.5-tonne towing capacity, and all for under $50,000.
And with the optional XLV (extra long vehicle/version) pack, which our test vehicle has, it gets a longer wheelbase (110mm extra), a 300mm longer tub and 90kg of extra payload over the standard Musso (880kg rather than 790kg).
So, is the Musso an affordable alternative to the likes of Toyota HiLux and Ford Ranger?
This petrol-powered and well-priced XUV500 W6 might mark Mahindra's most convincing effort at cracking Australia's congested SUV market, but we're still not completely convinced.
That said, it's certainly cheap, the ownership credentials stack up and it's a very comfortable way to transport seven people.
The KGM Musso Advance is a large 4WD ute offering a decent amount of appeal for the price and it makes a lot of sense in XLV form.
It’s generally nice to drive, it’s comfortable and capable for a ute and – as with the Rexton – the Musso is another clear sign that KGM continues to improve its vehicles, albeit incrementally in some cases, in terms of quality and functionality.
There's no getting away from the fact the XUV500 is not the sleekest, prettiest SUV in the pack. But it's not ugly, either. More that it looks like it's doing its best with a design philosophy hatched a generation or two ago.
Its best angle by far is when viewed straight on, where the piano-black grille, dual bonnet bulges and complicated (read: a little weird) headlight clusters all add some road presence to Mahindra's only SUV.
A side-on viewing, however, is less satisfying, where a combination of strangely placed and super-sharp body creases (including one over the rear wheelarch, which adds a Harbour Bridge-style crescent to the otherwise-straight window line) and serious rear overhang give the XUV500 an inescapable awkwardness.
Inside, expect a vast collection of rock-hard (though nicely patterned) plastics, with the ambiance rescued somewhat by the clean-looking and vertical central control unit, which is home to the media screen and air-con controls.
Ready for some hashtag real talk? There are better-looking and better-feeling seven-seat SUVs out there. But there aren't many that start at $25,990 drive-away. And I think that's Mahindra's point.
The Musso is based on its SUV stablemate, the Rexton. It’s a body-on-frame 4WD ute, available only as a dual-cab, and its appearance is inoffensively pleasant.
Styling changes to the Advance include a black grille, black 18-inch alloy wheels, HID headlights (on short and XLV grades), and rear privacy tint.
It also has a black leather-look interior with black leather-look seats.
The Musso’s interior offers plenty of space for the driver and passengers and is neat and well laid out.
Build quality and fit and finish are impressive with a mix of durable plastic and soft-touch surfaces throughout including a leather steering wheel and leather-look seats in the Advance.
Pretty damn practical, actually, regardless of whether you want to carry people or cargo. Carrying both at the same time, however, is tricky.
But let's start with people. There is a huge amount of room in the third row of the XUV500, a space with enough head and legroom to put plenty of its competition to shame.
Thanks to second-row seat backs that fold flat, before the the entire seat lifts up and pushes forward, climbing into seats six and seven isn't too big a drama, either.
We rarely say this about seven-seat cars, but at 175cm, I'd feel plenty comfortable back there on a longer drive. There are two air vents in the third row, too, along with bottle storage and side-seat storage for thin items.
All XUV500's are fitted with a 70-litre fuel tank.
The space in the middle row is ample as well, and you'll find three ISOFIX attachment points, one for each of the three seats. There's also a door pocket in each rear door and storage nets on the rear of the two front seats. A pull-down divider that separates the back seat is home to two cupholders, matching the two for front seat riders.
The only downside to all this people-lugging happiness is that, with the third row of seats in place, there is absolutely no room for luggage. Mahindra doesn't quote a litre storage figure when seven are seated (mostly because it would probably be embarrassing to write "one litre"), but trust us, you'll be lucky to squeeze a soft backpack in the boot with all seats in place.
Things improve considerably when you drop the third row of seats, though, which unlocks 702 litres of storage, and that number climbs to 1512 litres with the second and third row folded down.
There is the expected array of storage spots (glove box, door pockets etc), cupholders (two to the rear of the auto shifter) and charge points (two USB-C ports and a 12-volt plug point for driver and front passenger).
The seats are comfortable and supportive and, in general, KGM has maximised space in the cabin, yielding plenty of shoulder and legroom for driver and passengers.
The 12.3-inch touchscreen multimedia system works reasonably well although you do have to cycle through numerous menus and sub-menus to change some settings and I did have to try several times to pair my phone to it, so overall functionality is clunky.
Rear-seat passengers have access to directional air vents, but there are smart-device charge points.
The tub size is as follows: 1600mm long in the XLV (1300mm in the standard Musso), 1570mm wide (1100mm between wheel-arches) and 570mm deep. The tub has a plastic tub liner and four tie-down points.
For a direct comparison of dimensions: the standard Musso is 5095mm long with a 3100mm wheelbase while the XLV is 5405mm with a 3210mm wheelbase; the standard Musso is 1950mm wide and 1870mm high (the XLV is 1885mm). For reference, the Ford Ranger XLT dual-cab ute is 5406mm long (including rear bumper and tow bar receiver) with a 3270mm wheelbase.
The difference in dimensions between a standard Musso and the XLV version also means a difference in off-road angles so approach is 22.8° / 25° (XLV), departure is 23.4° / 20° (XLV) and rampover is 23° / 20° (XLV).
Minimum ground clearance is 215mm in a standard Musso and 220mm in the XLV, so the Musso XLV does stand taller off the ground than its regular stablemate.
Kerb weight is listed as 2090kg for the standard Musso and 2100kg for the XLV. Turning circle is 11.8m for the standard Musso and 12.2m for the XLV.
Make no mistake, this Mahindra kills the competition on price. The entry-level W6 version will cost you a lean $25,990, while the fruited-up W8 version will set you back $29,990. You can even have an AWD W8 for $32,990. The best part? All of those are drive-away prices.
Go for the W6, and you can expect 17-inch alloy wheels, cloth seats, air-con with vents (powered by a second compressor) in the second and third row, cornering headlights with DRLs, front and rear fog lights, cruise control, rear parking sensors and a 6.0-inch multimedia screen linked with a six-speaker stereo.
Spring for the W8, and you'll add leather seats, a reversing camera, tyre-pressure monitoring and a bigger, 7.0-inch screen with standard sat-nav.
The KGM Musso is available in three grades - ELX, Advance, and the Ultimate. All three can be optioned up with an XLV Pack, which adds a 300mm longer tub giving you an additional 251L rear tub capacity, along with a 110mm longer wheelbase. XLV also increases maximum torque from 400Nm to 420Nm.
At the time of writing, our test vehicle, the Advance, has drive-away price of $48,700.
Standard features in the Advance include 12.3-inch touchscreen multimedia system (with wireless Apple CarPlay and Android Auto), 12.3-inch digital LCD instrument cluster, leather-accented heated and ventilated front seats with electric adjustment, 18-inch black alloy wheels, HID headlights, LED daytime running lights, and a suite of driver-assist tech, but more on that in the Safety section below.
Exterior paint choices include Grand White (no extra charge), Amazonian Green (metallic paint), Marble Grey (metallic paint), Pearl White (metallic paint) and Space Black (metallic paint). Metallic paint is available for $700.
There's a diesel engine currently available, but the clock is ticking - Mahindra expects it to be phased out within six months. But the big news here is the new petrol engine, a turbocharged 2.2-litre unit good for 103kW/320Nm. It's paired exclusively with an Aisin-developed six-speed automatic transmission, and will send it's power to the front or all four wheels.
Mahindra doesn't quote official performance figures, but those engine outputs hardly scream excitement, do they?
The KGM Musso Advance with the XLV Pack has a 2.2-litre four-cylinder turbo-diesel engine – producing 133kW at 4000rpm and 420Nm from at 1600-2600rpm – it gets an extra 20Nm over the shorter version's 400Nm from 1400 to 2800rpm.
It has a six-speed automatic transmission, part-time 4x4 with high and low range, and an auto-locking rear differential.
This is a sluggish combination producing a generally lacklustre performance and the powertrain is not particularly efficient but, having said that, the Aisin auto is a reliable, well-proven transmission and the Musso ultimately does reasonably well with what it has.
The 4WD mechanicals and driver-assist tech actually work better in this package than they do in the Musso’s stablemate, the Rexton.
Local numbers are yet to be confirmed, but after an admittedly vigorous local test, the on-board computers was reading 13+ litres per 100km. All XUV500's are fitted with a 70-litre fuel tank.
Official fuel consumption for the Musso Advance with the XLV treatment is 9.0L/100km.
On this test, I recorded 11L/100km, but on the test I spent a chunk of time in 4WD high and low range.
The Musso has a 75-litre fuel tank, so going by my on test fuel-consumption figures, from a full tank, you could reasonably expect a driving range of about 681km.
But it is worth noting that I didn't have a lot of weight on board during this test – it was just me and the vehicle recovery gear – and you will have a lot more weight on board: your family or your mates, pets, camping gear, surfboards, kayaks, the whole kit and caboodle.
About as old school as rocking a pair of button-up tracksuit pants with a Run-DMC cassette stuffed into your Walkman.
On a straight and unchallenging road, there's stuff to like about the petrol-powered XUV500. The engine, while gruff under heavy acceleration, doesn't feel too wheezy when you're not asking a great deal of it, and nor is the cabin overly loud at suburban speeds. It's a comfortable space for driver and passengers, too, and the gearbox performed seamlessly on our short test drive.
But that's about where the good news ends. There's an unshakeable agricultural feel to the way this Mahindra SUV goes about its business, and nowhere is that more obvious than through the steering wheel, which has only a vague and difficult relationship with the the front tyres, making it seriously tricky to approach twisting roads with anything approaching confidence.
The steering is slow and cumbersome - light when you first begin turning the wheel, with a ton of weight appearing by surprise midway through the cornering process - and it has a tendency to fight back should the front wheels find a bump or corrugation in the road, too.
The body lolls about when challenged, too, and the tyres are quick to give up their grip on tighter corners. All of which would give it a certain retro charm if it wasn't so very new, and I must admit I was cackling maniacally on some of the more twisting roads.
But it's simply not a car I could live with.
On-road, the longer-wheelbase Musso is composed and comfortable with well-subdued NVH (noise, vibration and harshness) levels adding to an impressive overall sense of low-key refinement.
The engine and auto work reasonably well together, but as mentioned earlier this is a sluggish unit and it takes some urging to get it going. Pronounced lag from stand-still can be disconcerting, especially when you need plenty of zip to punch you into the traffic flow.
This ute’s suspension – double-wishbone, coil springs and stabiliser bar at the front, multi-link with coil springs at the rear – is firm, mostly controlled, but the Musso becomes jittery on irregular surfaces, such as lumpy back-roads bitumen and mildly corrugated dirt tracks.
One noteworthy annoyance: the Musso does not have adaptive cruise control.
Despite that, the Musso is actually quite reasonable for general driving duties.
As a 4WD, the Musso actually performs pretty well. It is a long wheelbase ute, so you have to drive it with consideration because you have to take into account its shallow off-road angles – approach, departure and ramp over – and it has quite a large overhang of tub behind the rear axle.
It has an auto locking rear diff, which is clunky in operation and I’d prefer a switchable diff-lock, which you could select whenever you want to, but otherwise it's effective in a workman-like kind of fashion.
Steering is not too shabby, it has a nice weight to it in all situations, whether you are on the bitumen or a dirt track. Turning circle on this long-wheelbase ute is 12.2m, but it feels nimble to steer around on the tracks.
The Musso has part-time four-wheel drive and high and low range 4WD gearing. It doesn't have a lot of power and torque in terms of the contemporary dual-cab ute market, but it does fine with what it does have; 420Nm in the XLV Musso gives it that little bit of extra punch over the standard Musso (400Nm) and that torque is available across a decent spread of revs.
If you intend to use your Musso as an off-road adventure vehicle or a weekend holiday machine, then it's handy to know that it's unbraked towing capacity is 750kg and its braked towing capacity is 3500kg and that's on par with the dual-cab ute market.
In terms of tyres, it’s the same story here as with most standard 4WDs – the Musso’s Nexen NPriz RH7 (255/60R18 108H) are not well-suited to anything other than light off-roading. The easy fix? Replace those tyres with some decent all-terrain tyres.
Payload is a listed 880kg (790kg in the standard Advance), GVM is 2980kg and GCM is 6480kg.
Expect dual front, front-side and curtain airbags (though the latter don't extend to the third row of seats), along with rear parking sensors and ESP. Stepping up to the W8 trim adds a reversing camera with dynamic guidelines. The XUV500 was awarded a four-star (out of five) ANCAP assessment when tested in 2012.
The Musso does not have an ANCAP rating because it has not been officially tested.
As standard, the XLV Advance has six airbags, auto emergency braking (AEB), lane departure warning, trailer sway control, blind-spot monitoring, rear cross-traffic alert, front/rear parking sensors plus reversing cameras and more.
Adaptive cruise control is not offered on Mussos in Australia, only old school cruise control.
All XUV500s are covered by a five year/100,000km warranty (though the final two years apply only to the drivetrain), along with five years of complimentary roadside assistance.
The XUV500 is also covered by Mahindra's capped-price servicing program for the first three years of ownership, and will require servicing every six months or 10,000km.
The MY26 Musso range is covered by a seven-year/unlimited kilometre new-vehicle warranty, and five years of roadside assistance.
A service is required every 12 months or 15,000km, whichever occurs soonest with cost per service either $418 or $522.
Note, KGM considers off-roading as an example of a “severe driving condition” and so your Musso may require more frequent servicing.
KGM Australia has more than 50 dealerships across the country with a decent spread across metro and regional areas. Rextons can be serviced at those dealers or at approved workshops.