Constant change in the Australian new car market means many buyers are considering brands they were previously unfamiliar with. India’s Mahindra isn’t exactly a new brand to Australia, having been sold here since 2007, but is ramping up its offering. The new XUV 3XO is its latest to hit the market.

A small SUV that competes against the Toyota Yaris Cross and Mazda CX-3, the XUV 3XO is far cheaper than those two cars with pricing starting at just $23,990 drive away for the entry-level AX5L. That puts it on par with the popular Chery Tiggo 4 as the joint cheapest small SUV, but even the top-spec AX7L is just $26,990 drive away.

Equipment levels are strong on both models, with highlights for the AX7L including a Harman Kardon sound system, synthetic leather trim, 17-inch alloy wheels, panoramic sunroof, automatic LED lighting, front and rear daytime running lights, auto wipers, dual-zone climate control, rear vents, 10.25-inch screens, wireless smartphone mirroring and safety kit such as AEB, adaptive cruise, lane keep assist and a 360-degree monitor. No blind-spot monitoring and rear cross-traffic alert is the only blip in an otherwise well-rounded package.

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The XUV 3XO range uses a 1.2-litre turbo three-pot engine making 82kW of power and 200Nm of torque, with the latter from just 1500rpm. While a more powerful 96kW/230Nm tune is offered overseas – but unfortunately not here – the XUV 3XO’s refined engine is more than strong enough for urban driving, though higher-speed overtaking may need planning.

A six-speed torque converter auto is standard and it shifts smartly without fuss, though we’d like to see a manual option offered to both reduce the price and increase the fun factor. Mahindra claims that the XUV 3XO will use 6.5/100km on a combined cycle and we used 7.2L/100km in driving skewed towards urban.

As you’d expect for a brand from a country with such famously poor roads, the XUV 3XO handles bumps and bad surfaces quite well. The ride is soft and comfortable, with reasonable body control to ensure that it settles quickly after bumps. It’s not the best handling car, but can be reasonably fun to drive thanks to its quick steering and nimble chassis. The too-light steering is the only issue in the dynamic package, and gives little idea of what the front wheels are doing.

Inside, the XUV 3XO is a surprisingly spacious interior for its small size, with enough space for four adults and an airier feeling than the Tiggo 4. The boot measures 364 litres, which is 100L larger than a CX-3 and is deeper than you’d expect. However, folding the rear seats reveals a big lip behind the seatbacks, and we’d like to see a dual-level boot floor to fix that. Move to the front and the XUV 3XO is just as practical thanks to ample storage spaces, though the front seats appear designed for smaller people.

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The XUV 3XO’s dashboard is not as cohesively designed as the slick Tiggo 4, with some features like the wireless phone charger not falling easily to hand. The liberal use of piano black trim is a bit over the top and will scratch easily. But overall, material quality is actually great for the price, with appealing synthetic leather trim on the tops of the dashboard and doors, and the leather steering wheel feels high quality.

The 10.25-inch touchscreen uses high-resolution graphics and feels more modern than the Tiggo 4’s screen. Plus, the wireless Apple CarPlay is easy to set up and reliable – though the menu layout could be easier to use and there’s no sat-nav in Australia despite there being an option for navigation in the driver’s display. The seven-speaker Harman Kardon sound system is also very punchy, with strong bass if you want, and we’d upgrade to the AX7L just for that.

After a long period of ever-rising car prices, it’s great to see cheaper products returning to market. But the Mahindra XUV 3XO does offer more than its value equation, with a refined drivetrain, excellent ride quality, surprisingly spacious cabin and long feature list.

Specs

ModelMahindra XUV 3XO AX7L
Price From$26,990 drive away
Drivetrain1197cc turbocharged 3-cylinder
Peak power82kW (@ 5000rpm)
Peak torque200Nm (@ 1500rpm-3500rpm)
Transmission6-speed auto, front wheel drive
Combined fuel economy (claimed/as tested)6.5L/100km, 7.2L/100km
CO2 emissions/fuel type137g/km
Fuel type/tank size91RON regular unleaded, 42 litres
L/W/H/WB3990/1821/1647/2600mm
Boot size364 litres (seats up – unknown seats folded)
Tare mass1411kg
WarrantySeven-year/150,000km
Five-year service cost$1595 ($319 per service)
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