Officially Official – Shortened Xylo coming for Rs 4.5 lakh

So far, Mahindra never featured among discussions on small cars. The big and purposeful MUV catered to large families. However, the same name will now send tremors to the competition with the shortened 5-seater Xylo. Yes, you heard it right. We featured spy pictures of the 5-seater Xylo sometime back and now two people involved with the development of the mini-Xylo have confirmed the same. So this ends speculation and rumours as to whether the shortened Xylo was a mule of the upcoming W101 mini-SUV.

M&M are planning big to take on premium hatchbacks with the Xylo CS. Not wish to be named, the officials confirmed that the model will be 35-40% cheaper than the present base model of the Xylo. However, they claimed that the mini Xylo could be delayed and eventually be launched in early 2011. The Xylo will duck under 4000mm and will feature a new engine under 1.5L to attract lower duties of 10% compared to 22% for bigger cars. Mahindra is targeting the core of the Indian automotive market, the hatchback segment with the mini-Xylo. The Xylo was initially dubbed to take on sedans while the mini-Xylo will give hatchbacks a run for their money. At the moment, the Premier Rio is the sole mini-SUV in India priced between Rs 5-6 lakhs, 200 of which have been sold since January 2010. The Xylo will also get a micro-hybrid version with Stop-Start before the end of 2010.