Mahindra’s Smallest SUV Is Outselling Every Other Car Except Scorpio
Mahindra’s smallest SUV, the XUV 3XO, has emerged as the company’s second best-selling model after the Scorpio. In a competitive market with numerous options, the XUV 3XO has made significant gains, driven by an extensive update over its predecessor, the XUV300.
Model Evolution and Strategy
Initially introduced as the XUV300, the model received a substantial update in April 2024, rebranded as the XUV 3XO. The changes extended beyond cosmetic revisions, with the model receiving a redesigned exterior, a completely overhauled interior, and several new features.
Deliveries commenced in late May 2024, with bookings surpassing 10,000 within the first week. By the end of the fiscal year, over 1,00,000 units had been sold, representing an 84% increase over the previous year’s XUV300 sales. This performance placed it ahead of other Mahindra models such as the XUV700, Thar, and Bolero.
Factors Behind the Success
The XUV 3XO’s product strategy has played a significant role in its market performance. It offers three engine options: a 1.2-litre turbo-petrol producing 131hp and 230Nm, a naturally aspirated petrol, and a diesel engine delivering 117hp and 300Nm. These figures position the 3XO competitively against larger SUVs in the segment. Transmission choices include manual and automatic options across variants, broadening its appeal.
The feature list has been a key differentiator. Higher variants offer a 10.25-inch touchscreen infotainment system, digital driver’s display, wireless connectivity, premium audio system, panoramic sunroof, ventilated seats, and advanced driver assistance systems (ADAS). These amenities usually associated with higher-segment vehicles. Rear seat comfort has also been prioritised, with adequate space for three adults, rear AC vents, and multiple charging points.
Pricing has been another critical factor. The entry-level variant is priced aggressively, making it accessible to a wider audience, while the fully loaded variants cater to aspirational buyers seeking a premium experience without the cost of a larger SUV.
Customer Feedback and Real-World Performance
Real-world impressions suggest that the XUV 3XO delivers a refined driving experience. The smooth power delivery, stability at higher speeds, and good ride quality over uneven surfaces make it a great, small SUV to drive. Cabin insulation is effective at minimising road noise, contributing to a more comfortable driving environment.
However, there are minor drawbacks. Certain users have reported that the front seats could offer better thigh support, and the footwell space could be improved. Occasional glitches with technology features like Android Auto have also been reported. Fuel efficiency, particularly for the turbo-petrol variant, has received mixed feedback. Nonetheless, most buyers find the overall balance between performance, comfort, and features competitive for the price.
Competitive Positioning
The compact SUV segment remains intensely contested, with rivals such as the Tata Nexon, Maruti Brezza, Kia Sonet, and Hyundai Venue offering strong propositions. Despite this, the XUV 3XO recorded 7,055 units in March 2025, consistently leading its direct competitors in monthly sales.
The model’s combination of aggressive pricing for entry-level variants and feature-rich top trims has enabled it to appeal to both first-time SUV buyers and those upgrading from smaller vehicles. This broad-spectrum appeal has been instrumental in its sales performance.
The Scorpio’s Continued Dominance
While the XUV 3XO has achieved impressive growth, it continues to trail the Scorpio and Scorpio-N, which remain Mahindra’s best-selling models. The Scorpio’s reputation for durability and its strong demand in rural markets underpin its continued success. However, in urban and semi-urban markets, the XUV 3XO’s modern features, safety equipment, and compact footprint have established a strong position.
Outlook
Mahindra’s focus on regular product updates, value-driven pricing, and feature additions has enabled the XUV 3XO to maintain strong momentum. If current trends continue, cumulative sales are projected to cross the four lakh mark by the end of 2025. The success of the XUV 3XO underlines the importance of offering a well-rounded package in a crowded market and reflects Mahindra’s evolving strategy in the compact SUV segment.