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

07/08/2017 - 08:47 Mahindra U321, Mahindra, Spy pictures 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.

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.