Mahindra U321/S321 with projector headlamps & alloy wheel spotted [Update]

07/08/2017 - 08:47 | ,  ,   | Sagar Parikh

Update - Team BHP member Srinath34 has spotted the Mahindra S321 on test in Chennai. As with previous sightings, the test mule is fully loaded and comes with beige interior.

Mahindra S321/U321 test mule Chennai rear Mahindra S321/U321 test mule Chennai

Aug 1, 2017 -

Following the Mahindra KUV100 last year, Mahindra will expand its line-up with a new MPV codenamed Mahindra U321/S321. A top-spec Mahindra U321/S321 was recently spotted testing on the roads, courtesy MotorOctane.

Mahindra U321 front spy shot
The Mahindra U321 will replace the Mahindra Xylo.

The top-spec Mahindra U321 seen in the spy photos features projector headlamps and double-spoke alloy wheels. It appears to have XUV-like peeled back fog lamps as well. The U321 will replace the Xylo that launched in 2009. Unlike the Xylo, it will have traditional MPV design & proportions.

The U321 is the first vehicle developed by the Mahindra North American Technical Center based in Troy, Michigan. Reports say that the U321 rides on an all-new platform. Mahindra is reportedly ready with a new 1.6-litre four-cylinder diesel engine developed with SsangYong, which the U321 will be a direct beneficiary of. The companies are also working on new 1.5- and 2.0-litre petrol engines, and the former could serve in the U321.

The new 2.0-litre petrol engine, along with the already available 2.2-litre diesel and 1.99-litre diesel (Delhi-NCR only) engines, would help it compete much better with the Toyota Innova, though. Much depends on how Mahindra wants to position the 7-seat MPV, as a product slotted between the Maruti Ertiga and Toyota Innova, or an outright Toyota Innova rival. Bigger and more powerful engines would also mean a stronger potential for exports.

Mahindra U321/Mahindra S321 rear three quarters left side spy shot
The U321 is based on an all-new platform developed at the MNATC R&D centre in Michigan.

Also See: Mahindra XUV500 Facelift – IAB Rendering

The Mahindra U321 will go on sale in India later this year. Its production will take place at the Nashik plant.

[Image Source: MotorOctane &]

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