Some time back there was news that Mahindra was planning to launch a smaller SUV to take on the Premier Rio. Well that is going to be certain now. Mahindra is developing a smaller version of the Xylo (or just disguised as Xylo ).
The mini SUV/Xylo which is undergoing testing will be less than four-metres in length and will come with a diesel engine under 1.5-litres to qualify as a ‘small car’ to avail of a substantial 12% saving in excise duty.
The mini SUV/Xylo uses a shortened version of the present Mahindra Xylo’s body-on-frame chassis and the current 2.5 CRDE engine has been downsized as well. The engine capacity has been reduced from 2.5-litres to under 1.5-litres by eliminating one cylinder (the mini SUV/Xylo will have a three cylinder engine) and reducing the bore and stroke. The miniSUV/ Xylo will only have two rows of seats and hence a maximum seating capacity for five passengers.
We expect the pricing close to 5 lakh mark for the base version. Mahindra Xylo is successful and they expect a similar success from this model too. This would also help Mahindra cater to the Metros as the choices aof a smaller SUV is less due to BSIV emission norms as Bolero VLX is the only model sold in Metros.