Mahindra plans to launch a new product every year till FY21, beginning FY18. The first of these is the Mahindra U321. It is currently undergoing extensive road testing across the country and was recently spotted in Belgaum, Karnataka, courtesy autoX.

While we have gathered several details of the Mahindra U321 from its previous outings, the new spy photos reveal dual spoke alloy wheels and a beige interior. Unlike the Xylo it replaces, which has an SUV styling, the U321 has a traditional MPV shape and design. The U321 is the first vehicle conceived by the Mahindra North American Technical Center based in Michigan, USA.


An all-new 130 hp 1.6-litre mFalcon diesel engine co-developed with SsangYong will power the Mahindra U321. Some reports say that the XUV500’s 2.2-litre mHawk diesel engine (140 hp/330 Nm) would also power the MPV. Mahindra is working to tune up this engine to deliver 170 PS and 350-360 Nm of torque with the 2018 Mahindra XUV500. The new engine could help the U321 compete spec to spec with the Toyota Innova Crysta. With an investment of INR 1000 crore, the company is developing new 1.5- and 2.0-litre petrol engines as well, and has said that every new product will have a petrol option from 2018.

The Mahindra U321 is officially confirmed to reach the market in H2 FY18 (October 2017-March 2018). In media interviews, Pawan Goenka, Managing Director, Mahindra & Mahindra, has said that the launch will take place this year. Hence it won’t be unrealistic to expect the car in dealer showrooms during the October-December period.

While there’s no confirmation, we expect the MPV to have 8-seat (2+3+3) low-end and 7-seat (2+2+3) high-end configurations, with the latter appointed with captain chairs in the second-row.