Reported to get the Quanto's engine.
A report on Autocar India states that Mahindra is working on increasing the fuel efficiency of the U301 (codename) compact SUV, ahead of its launch slated this year. The report states that the U301's fuel efficiency will have to exceed that of the Quanto's (which is rated at 17.21 km/l) for it to strike the value chord among buyers.
Engineers are presently tweaking the gear ratios and the ECU to achieve a good fuel efficiency figure. Unlike the S101 which is based on a lightweight monocoque platform, the U301 will be a ladder-on-frame compact SUV, but it will duck under the 4 meter length thus qualifying it for small car excise duty benefits.
Power for the compact SUV will be sourced from a 1.5-liter diesel engine, which according to reports, would be carried over from the Quanto. The 1.5-liter unit is nothing but the three-cylinder version of the engine used on the Mahindra Xylo, and makes 100 bhp and 240 Nm of torque on the Quanto.
On the U301, this engine will be paired to a 5-speed manual and automated manual transmission (AMT), though it remains to be seen if a 4WD variant will be on offer.
[Source - Autocar India]