There are some surprises in the annual Wheels Car of the Year awards – and then there are real surprises. This year, one of them comes from a place few Australians would have predicted: India. The Mahindra XUV 3XO has cracked the prestigious Wheels COTY Top 8, and it’s done it the hard way – by delivering value, comfort and common sense at a price that still starts with a “2”.
The Wheels Car of the Year awards don’t hand out praise lightly. This is one of the toughest automotive beauty contests in the country, judged by editors who drive just about everything on sale – and who have little patience for marketing fluff.
So when the Mahindra XUV 3XO AX7L was named among the Top 8 finalists for the 2025–26 Wheels Car of the Year, it wasn’t a token nod. It was a genuine endorsement.
In fact, it marked a milestone: the XUV 3XO is the first Indian-manufactured vehicle ever to make the Wheels COTY Top 8. That alone tells you something important has shifted.
Value Still Matters — And Wheels Knows It
At a time when new-car prices continue to climb, the XUV 3XO caught judges’ attention for doing something increasingly rare: delivering a complete, usable package for well under $30,000 drive-away.
The entry point for the XUV 3XO AX7L is $26,990, and for that money buyers get a compact SUV that doesn’t feel cheap or compromised – a point Wheels judges were keen to underline.
As judge Dave Morley noted, it’s relatively easy to build an expensive luxury car. The real challenge is delivering something affordable that still feels sorted. That’s where the Mahindra surprised.
Better on the Road Than Expected
Dynamic testing is often where budget cars fall apart – and where the XUV 3XO quietly shone.
Wheels praised its composed suspension, confident handling, and easy-going nature on Australian-style roads. In plain terms, it rides properly, steers predictably and doesn’t punish occupants on rough surfaces.
That matters to real people doing real kilometres – particularly older buyers, downsizers, and families who want comfort without the drama.
Practical, Not Pretentious
The XUV 3XO AX7L isn’t chasing luxury badges or performance bragging rights. Instead, it majors on usability.
Judges highlighted:
A comfortable cabin with clear instruments
Physical buttons and controls (a win for anyone tired of touchscreen menus)
Strong air-conditioning – no small thing in an Australian summer
A seven-speaker Harman Kardon sound system in AX7L trim
And a seven-year/150,000km warranty, which adds peace of mind
Wheels described it as a “hidden gem” — honest, sensible and well suited to buyers who want their money to stretch further.
Not Just Making Up the Numbers
The XUV 3XO AX7L found itself in rare company. Other Top 8 finalists included:
Honda Civic e:HEV L
Toyota GR Corolla
Kia EV3 Air Long Range
Skoda Kodiaq Sportline 4×4
That puts Mahindra squarely in the conversation – not as a novelty, but as a legitimate alternative.
Mahindra’s Slow-Burn Strategy
Mahindra has been in Australia for more than 20 years, quietly building credibility rather than chasing headlines. The XUV 3XO’s success reflects ongoing investment in design, engineering and quality across the brand’s global operations.
No one is suggesting it’s the best car in the country. But the Wheels judges were clear on this point: it deserves far more attention than it’s currently getting.
And for buyers who prioritise value, comfort and everyday usability over badges and bravado, that’s worth knowing.
The Mahindra XUV 3XO AX7L is available now across Australia – and after this result, it’s unlikely to remain such a well-kept secret for long.