Is the Mahindra XUV3XO the Best Budget SUV in Australia? An Expert Review

By Muskan Kumari

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With the SUV segment booming in Australia, buyers are constantly on the lookout for affordable, practical, and stylish SUVs that don’t compromise on performance or safety. Into this hotly contested market steps the Mahindra XUV3XO, an updated and rebranded version of the XUV300, aiming to turn heads and win hearts — all while being budget-friendly.

But does it have what it takes to stand out in a field filled with the likes of the MG ZS, Hyundai Venue, Kia Stonic, and Toyota Yaris Cross? Let’s dive into a detailed, expert-level review to find out.


🇮🇳 ➡️ 🇦🇺 Mahindra’s Growing Presence in Australia

Mahindra is no stranger to the Australian market. Known primarily for its rugged utes and tractors, the Indian auto giant is now expanding its footprint with modern SUVs, starting with the XUV700 and now, the XUV3XO.

The company’s aggressive pricing, durable build quality, and improved styling have made it a value-for-money contender in the subcompact SUV category.


🚗 XUV3XO at a Glance: Key Highlights

  • Engine options: 1.2L turbo petrol (manual and automatic)
  • Power output: Up to 129 hp, 230 Nm torque
  • Transmission: 6-speed manual & AISIN 6-speed torque converter
  • Infotainment: 10.25-inch floating touchscreen with AdrenoX system
  • Instrument cluster: Fully digital, customizable
  • Safety: Up to 6 airbags, ESC, front parking sensors
  • Boot space: 295 litres
  • Price: Expected AUD $19,990 to $25,990 (driveaway)

🧠 Design and Road Presence

The XUV3XO gets a full design refresh over the previous XUV300. It now looks more aggressive, sportier, and modern. Key exterior updates include:

  • LED DRLs and headlamps with a signature Mahindra design
  • New grille design with chrome and gloss black finish
  • Sporty 17-inch diamond-cut alloy wheels
  • Dual-tone paint options for added flair
  • Rear connected LED taillight bar — very trendy in 2025
Mahindra

It looks bold yet compact, fitting right into urban Australian lifestyles while offering a slightly muscular road presence.


💺 Interior Comfort & Features

Step inside, and you’ll notice Mahindra has taken a big leap in premium appeal and technology:

  • Dual 10.25-inch displays (infotainment and digital instrument cluster)
  • Soft-touch dashboard with layered textures
  • Leatherette seat upholstery (top trims)
  • Wireless Android Auto and Apple CarPlay
  • Wireless phone charger, cooled glovebox
  • Panoramic sunroof (segment first in budget category)
  • AdrenoX voice assistant (AI-based system)

Despite being a compact SUV, the cabin feels airy, tech-rich, and comfortable for a family of four.


⚙️ Performance and Driving Experience

The XUV3XO offers zippy urban performance and competent highway manners, especially for a car at this price point.

Petrol Engine Performance:

  • 1.2L turbo petrol
  • Power: 110–129 bhp depending on the variant
  • Torque: 200–230 Nm
  • Responsive mid-range and smooth acceleration

Transmission:

  • Manual: Crisp shifts, suited for driving enthusiasts
  • Automatic (6AT): Refined, urban-friendly, sourced from Aisin

The suspension tuning is surprisingly mature, soaking up road imperfections with ease, while the steering is well-balanced for both city and highway driving.


🛡️ Safety and Crash Protection

Mahindra takes safety seriously. The older XUV300 scored 5 stars in Global NCAP, and the XUV3XO is expected to maintain this legacy with:

  • 6 airbags (top variants)
  • ESC, Hill Start Assist, and ABS with EBD
  • Front and rear parking sensors with a rear-view camera
  • ISOFIX child seat anchors
  • Strong body shell with high-tensile steel usage

With these features, the XUV3XO confidently competes with more expensive rivals in terms of safety.


💰 Pricing and Value in Australia

One of the biggest selling points of the XUV3XO is its affordable pricing. While final pricing may vary slightly across regions, it is expected to start at around AUD $19,990 and top out near $25,990 driveaway.

This undercuts most competitors while still offering:

  • More power than MG ZS
  • Better tech than Hyundai Venue
  • More airbags than Kia Stonic
  • A sunroof, which many rivals don’t offer at this price

🆚 Comparison with Rivals

FeatureMahindra XUV3XOMG ZSHyundai VenueKia Stonic
Price (Start)$19,990$22,990$24,000$23,500
Engine Power129 hp112 hp121 hp118 hp
Infotainment10.25″ screen10.1″8.0″ (base)8.0″
Safety6 airbags2–666
SunroofYes (top)NoYes (top)No
Boot Space295L359L355L352L

While the boot space is slightly less, the tech, safety, and price advantage give the XUV3XO a unique edge.


🌏 Is It Right for Australian Buyers?

The Mahindra XUV3XO checks a lot of boxes for the modern Australian urban buyer:

✅ Budget-conscious first-time car buyers
✅ Young professionals wanting tech without high EMIs
✅ Families looking for safety and comfort in a compact package
✅ Buyers open to non-Japanese/Korean brands but seeking high value

Of course, brand perception and after-sales network are still areas where Mahindra is expanding. But with increased investment in service centers and roadside support, things are improving fast.


🔮 Verdict: Should You Buy the Mahindra XUV3XO in Australia?

If you’re in the market for an affordable, stylish, well-equipped, and safe SUV under $26,000, the Mahindra XUV3XO is a serious contender. While it may not have the decades-long legacy of its rivals, it certainly brings bold new energy to the segment.

It’s the kind of SUV that gives you premium features without the premium price tag — a true disruptor.


Final Rating: ★★★★☆ (4.5/5)

  • ✅ Value for Money: 5/5
  • ✅ Features & Tech: 4.5/5
  • ✅ Safety: 4.5/5
  • ✅ Performance: 4/5
  • ✅ Brand & Network: 3.5/5 (improving)

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