Mercedes-Benz C-Class vs Mahindra Xuv 3Xo

What's the difference?

The Mercedes-Benz C-Class C200 is such a stylish sedan and I would totally have one. The driving performance, luxurious features and practical size made it a winning combo for my family. The price point is definitely up there but you do get a high-end build for the cash. I've seen bigger boots in other sedans and not being able to fit a third child seat will limit some families, but this still easily earns an 8.5/10 from me.

My son really loved this one. The ambient lighting was the highlight for him and he thought it looked like a "space car" inside. He gave it a 9/10.

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 C200 is a sleek and elegant steed.

Initially, you may think this is just a standard Merc showcase. There's the nice big badge on the pronounced nose. Beautiful sleek lines in the body... but it's the attention to detail that make this feel special.

There's a repeated badge motif in the grille and a cute cursive Mercedes logo tucked into the corner of the windscreen. The puddle lights on the doors project the badge at night time and you can often spot a badge etched into the LED lights.

However, it's the interior that's the highlight for me and I feel like it's a big step up from previous models I've been in.

Our model has the grey 'Artico' synthetic leather trim (says grey but it's really white) and a lovely mix of piano black and shiny chrome inserts that are set against soft touchpoints throughout.

The quality of the build oozes through every stitch and join. Don't even get me started on the cool customisable ambient lighting system inside, which makes this feel like you're on the set of Tron and really elevates the interior.

It's quite fun to build one of these in Mercedes' online configurator. You can customise your trims to make it feel like your own and their blue paintwork options are great (I do love a blue car).

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.

I'm not going to lie – there are sedans out there that have an almost limo-like space inside but the C200 isn't one of them.

It's not small by any means and all occupants enjoy the comforts of decent legroom and headroom but it's not cavernous considering the specs (1437mm high/1820mm wide/4751mm long).

The optional panoramic sunroof does cut into the headroom for back seat passengers, which is something to consider if your family is very tall.

The storage is maybe a tad leaner-than-average for a car of this size. The glove box and middle console aren't massive but will suffice.

The cupholders up front can be removed if you need extra storage space for larger items and back seat passengers enjoy retractable cupholders in the armrest.

The way the front doors curve out creates a larger than normal storage bin and drink bottle holder – which help make up the difference. There is a dedicated phone pocket, to tuck it out of the way.

The boot space is 455 litres (VDA), which isn't as large as some others on the market but it was plenty big enough for my family's needs.

There's a handy under-floor storage pocket for smaller items, like the puncture repair kit, because you don't get a spare tyre in this.

When it comes to ease of use, my six-year-old loved not needing my help to get into his seat and he still enjoyed a decent view out of the wide back window.

The amenities in each row are good but not class-defining. Still, creature comforts have be well-thought through.

Front occupants enjoy heated seats and fantastic lumbar and under thigh support. Dual-zone climate control sorts out the temp, and the cool circular air vents that make loud audible 'clicks' when manoeuvred give the interior a jet cockpit vibe.

While I've never had an issue opening or closing a sedan boot, the powered lid was a nice feature to have this week.

The tech throughout is great and intuitive to use. The massive 11.9-inch touchscreen multimedia system is cool and is easy to use once you become acclimatised to Mercedes system.

The customisable digital instrument panel makes the driving experiences feel individualised.

The interior is a chilled out space with gentle scrolling touchpads taking the place of most 'push' buttons and dials.

Think of each surface as being a bit like a touchscreen tablet in how you operate it. I was a little worried the touchpads would be laggy but they're very responsive.

There's only one USB port in the whole car, which limits charging for other passengers but I did enjoy the easy connectivity of the wireless Apple CarPlay.

The electric heated front seats are a nice touch but I was amused by the 'kinetic' function on both. It's what you might call a 'massage' function on another car but here they don't really work. It's best to think of them as a way to do some (very) gentle stretching on a long trip.

The 360-degree camera view is super clear and crisp but the dynamic guidelines (which tilt the camera angle) are a bit too dynamic for my liking and I relied mostly on the bird's eye view to park.

As I've mentioned, the ambient lighting system creates a stellar atmosphere inside. I've often wondered why other car manufacturers haven't jumped on that bandwagon because it's a relatively cheap way of creating wow factor. And it generates massive wow factor in here.

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.

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 C200 has a 1.5-litre, four-cylinder, turbo-petrol engine with an integrated starter-generator. 

What's that, you ask? So, glad you did. It's basically an electric battery that also acts as your starter... or alternator.

It smooths out vibrations from the engine and generates some power from braking. Making this a very mild hybrid. Note the 'mild'.

Is it powerful? Surprisingly, yeah. It has a maximum output of 165kW and 300Nm of torque. Combine that with the starter-generator and we have a powerful little engine that can push the C200 from 0-100km in 7.3 seconds, while still feeling like there's power in reserve.

The nine-speed auto transmission is damn smooth and there's no clunky gear changing at any speed. It's got great pick-up, too, for when you need to overtake or zip across traffic.

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 official combined cycle fuel figure is 6.9L/100km. Real world testing saw my figure at 7.2L, which was awesome for the heavy driving I did this week on a combo of urban and open-roads.

The light regen braking probably helps this coast comfortably into being a very efficient sedan for its size.

Minimum fuel requirement is 95 RON premium unleaded and you'll need 66 litres of it to fill the tank.

Driving range using the official consumption figure is around 950km, and 915km using our real-world number.

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 steering feels solid and concise. The tyres seem like they're glued to the road, making winding roads downright fun to tackle. Oh, and the sharp 11 metre turning circle is wonderful.

The handling makes this your best friend in a car park. The lower ground clearance did elicit some unladylike grunts when I parked on a hill, but otherwise the wide door apertures makes it easy to get in and out of.

The only thing I would note is the low-profile ground clearance. Just be aware of your speed and angle when you handle car park ramps or road bumps in this. They are not your friends.

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.

The Mahindra XUV 3XO hasn’t been crash-tested by ANCAP just yet.

It was, however, tested by India’s less stringent Bharat NCAP testing authority in 2024 and received a five-star rating.

Standard safety equipment includes autonomous emergency braking (AEB), lane departure warning, lane-keep assist, lane centring, adaptive cruise control, traffic sign recognition, rear parking sensors and a reversing camera.

Stepping up to the AX7L gets you a surround-view camera, blind-spot view camera, and front parking sensors.

Notably absent from the entire range is rear cross-traffic alert, as well as a traditional blind-spot monitor that alerts you when a car is in your blind-spot.

There are two ISOFIX points on the two outboard rear seats, as well as three top-tether child seat anchorages across the rear bench.

The C200 comes with a five-year/unlimited km warranty, which is standard for the market.

There are multiple servicing options and on the five-year plan, the services average $1090 annually, which is quite expensive.

Servicing intervals are pretty good at every 12 months or a longer than usual 25,000km, whichever comes first.

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.