The 2025 Mahindra XUV 3XO will start at $23,490 drive-away nationally, undercutting the Chery Tiggo 4 SUV‘s $23,990 drive-away price by $500 to become Australia’s cheapest SUV. However, prospective buyers should be aware of a significant catch that could affect future pricing.
The Game-Changing Price Point
The Indian manufacturer has officially launched what many are calling a breakthrough moment in Australia’s competitive SUV market. The new benchmark price is for the entry-level 3XO AX5L, with the higher-spec 3XO AX7L priced at $26,490 drive-away.
This aggressive pricing strategy positions the XUV 3XO as a serious challenger to Chinese competitors including the Chery Tiggo 4, MG ZS, and GWM Haval Jolion, while offering buyers a non-Chinese alternative in the budget SUV segment.
The Critical Safety Standards Catch
2026 ANCAP Changes Could Force Price Hikes
Here’s where things get complicated for budget-conscious buyers. The XUV 3XO is being launched this month without an ANCAP safety rating, and while it has a five-star crash test result from Indian safety authority Bharat NCAP, the automaker confirmed that the vehicle landing in showrooms from July 4 doesn’t meet the new 2026 ANCAP requirements.
Speaking at the launch of the Mahindra XUV 3XO – a city-sized five-door compact SUV to rival the Chery Tiggo 4 and Mazda CX-3 – Mahindra head of international operations Sachin Arolkar said the new regulations would force the price of the XUV 3XO upwards.
Temporary Introductory Pricing
The current attractive pricing comes with a time limit. The price advantage is temporary, though, with Mahindra confirming this ‘introductory’ pricing for the 3XO will run only until August 31, 2025. On September 1, Mahindra will apply the standard drive-away prices of $23,990 to the AX5L and $26,990 to the AX7L.
What You Get for Your Money
Despite the pricing challenges, the XUV 3XO offers impressive value. In Australia, the drive-away price includes all on-road costs such as tax and registration. The vehicle features a 1.2-litre mStallion turbo charged multipoint fuel injection (TCMPFi) engine [that] generates 110 hp and 200 Nm of torque and is paired with a 6-speed torque converter automatic transmission.
Standard safety equipment includes six airbags, autonomous emergency braking, adaptive cruise control, lane-keep assist, and a surround-view camera system.
ANCAP 2026 Protocol Changes Explained
The Australian Design Rules (ADRs) set by the Australian Government establish minimum safety standards, while ANCAP provides independent safety ratings. From 2026 onwards, ANCAP plans to incorporate evaluations of assisted-driving technology into its safety testing… moving to a three-year protocol update cycle.
XUV 3XO Specifications Comparison
| Feature | XUV 3XO AX5L | XUV 3XO AX7L | Chery Tiggo 4 |
|---|---|---|---|
| Drive-Away Price | $23,490* | $26,490* | $23,990 |
| Engine | 1.2L Turbo Petrol | 1.2L Turbo Petrol | 1.5L Turbo Petrol |
| Power | 110hp/200Nm | 110hp/200Nm | 115hp/230Nm |
| Transmission | 6-Speed Auto | 6-Speed Auto | CVT Auto |
| Safety Rating | Bharat NCAP 5-Star | Bharat NCAP 5-Star | ANCAP 5-Star |
*Introductory pricing until August 31, 2025
Market Impact and Competition
The greatest rival from which Mahindra hopes to carve some sales with its XUV 3XO is the ageing Mazda CX-3 which, despite being on sale for 10 years, found an incredible 18,461 homes last year.
The timing coincides with Australia’s New Vehicle Efficiency Standard (NVES) taking effect from July 1, 2025, which imposes stricter emissions standards on vehicles sold in Australia.
Frequently Asked Questions
Q: Is the $23,490 price permanent?
A: No, this is introductory pricing valid until August 31, 2025. Standard pricing will be $23,990.
Q: Does the XUV 3XO have ANCAP safety rating?
A: Currently no, but it has a 5-star Bharat NCAP rating. ANCAP testing for 2026 standards is planned.
Q: How does it compare to Chinese competitors?
A: It undercuts most Chinese rivals while offering similar features, providing a non-Chinese alternative.
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