Sponsored

The all-new 2025 Mahindra 3XO has landed in Australia, and after testing it on local roads, it’s clear this compact SUV is a serious contender in the entry-level SUV segment.

Developed using the underpinnings of the discontinued SsangYong Tivoli and thoroughly re-engineered by Mahindra (80% new), the 3XO blends affordability with impressive technology, real-world usability, and surprisingly sharp driving dynamics.

With drive-away pricing starting at $23,990 for the AX5L and $26,990 for the top-spec AX7L, the 3XO undercuts most of its rivals while offering more equipment. During its introductory launch period, Mahindra is offering an additional $500 discount, making it the most affordable SUV in Australia right now.

Exterior and Design

Visually, the Mahindra 3XO makes a bold statement. From its unique LED daytime running lights to the chiseled front grille and striking bumper design, it manages to look premium while retaining its youthful personality. The design is both distinctive and functional - bright LED lighting ensures visibility, while front parking sensors and a forward-facing radar integrate seamlessly into the front fascia.

The 3XO’s paint options also deserve a mention. The metallic yellow seen here - paired with a contrasting black roof and blacked-out detailing - was chosen specifically for its visual impact and stands out in a sea of bland compact SUVs.

The rear design continues the visual appeal with a full-width LED light bar, AX7L badging, and a compact but stylish rear bumper. A small, single exhaust pokes out beneath, a humorous contrast to its bold styling.

While the 364-litre boot is slightly smaller than the Chery Tiggo 4 Pro's, it offers ample space for a few suitcases, and expands with the rear seats folded. Underfloor storage includes a "Stepnee" branded wheel (space-saver spare) and some additional cubby space for smaller items.

Interior and Technology

Step into the cabin of the 3XO and you’re met with an interior that prioritises simplicity and usability over gimmicks.

Physical controls for climate and key functions remain - something many buyers will appreciate in an age dominated by touchscreens. Dual-zone climate control, a wireless charging pad with cooling vents, and a large infotainment screen come standard in the 3XO.

Mahindra’s new software suite performs surprisingly well, with no noticeable lag or bugs in our testing. Wireless Apple CarPlay and Android Auto work flawlessly. The digital instrument cluster is customisable and clearly laid out, and while not flashy, it’s functional and intuitive.

The inclusion of a Harman Kardon audio system at this price is a standout feature.

The seats are trimmed in leatherette (AX7L only), while lower trims get cloth. The seats offer decent support, and the panoramic sunroof - dubbed "Sky Roof" - floods the cabin with natural light, making it feel far larger than its compact footprint suggests.

One suggestion for Mahindra is to include a telescoping function to it's steering wheel, where currently you can move it up-and-down, but not in-and-out.

Cabin storage is also excellent, with large door bins, a massive glovebox, multiple USB ports (including a 65W fast charger - yes, we tested the claim), and a deep central storage cubby. Material choices are mostly soft-touch, although glossy black trim around the centre console and infotainment screen will show fingerprints easily.

Overall, the interior is impressive - and rather refreshing. Everything is where it should be, and just makes sense.

Practicality and Rear Seat Space

Despite its small footprint, the Mahindra 3XO is impressively packaged.

The rear doors are large and open wide, making access easy. Once inside, there’s excellent legroom, toe room, and headroom - thanks in part to clever roof cut-outs that offset the intrusion of the panoramic roof.

Rear passengers also get dedicated air vents, a USB-C fast charger, and a 12V socket. The rear bench includes a centre armrest with cup holders and supportive cushioning.

To note: There is no centre airbag between driver and front passenger, which may impact future ANCAP scores. While on a trip with Mahindra, they conducted a live crash test to 2026 ANCAP protocols and demonstrated strong structural integrity based on initial results, though we'll have to await ANCAP testing for final results.

Driving Experience

The 2025 Mahindra 3XO is powered by a 1.2-litre turbocharged three-cylinder petrol engine producing 82kW and 200Nm.

Mated to a six-speed Aisin torque converter automatic, it provides a smoother experience than expected for the price, especially in Australian conditions. The transmission's behaviour is much improved over what we observed during testing in India's hotter climate.

While it isn’t fast - 0–100km/h in around 11.6 seconds - the torque delivery makes the 3XO feel responsive in everyday driving. What’s most impressive is its composure on-road. With suspension geometry derived from the Tivoli and tuned for European tastes, the 3XO corners flatly, feels stable at speed, and maintains comfort over most surfaces.

Even over our infamous backroad "ball-buster" test section, the 3XO remained composed, with only slight jolts transmitted into the cabin. Steering weight is heavier than expected for the class, lending a sense of control uncommon in the sub-$30K bracket.

Fuel economy is another win, with real-world figures hovering around 6.8L/100km in hilly terrain and dipping closer to 5.3L/100km on highways. Compared to rivals like the Tiggo 4 Pro, which we saw often returns 9L/100km or more, this makes the 3XO more affordable to run long-term.

Mahindra’s Level 2 ADAS suite is also excellent. Lane centring, adaptive cruise control, and autonomous emergency braking all worked confidently and smoothly.

Overall, the driving ability of the Mahindra XUV 3XO in Australia was above average, and impressed us for the price.

Final Verdict

The 2025 Mahindra 3XO doesn’t just hit its brief - it overdelivers. At under $27,000 drive-away, the AX7L in particular is an outstanding value proposition, combining excellent technology, surprising driving dynamics and modern design.

Sure, it’s not a performance car and it’s missing a centre airbag, but those drawbacks are minor when viewed against everything it offers. From its fuel efficiency to its panoramic sunroof, from its quality interior to its confident handling, the 3XO redefines what buyers should expect in a budget SUV.

If you’re shopping for an affordable compact SUV in Australia, the Mahindra 3XO should be right at the top of your list.

And don’t forget - if you want to get the best deal on your new Mahindra 3XO, use CarSauce Buy. Our dedicated team will connect you with trusted dealers to ensure you get the sharpest price possible.