Mahindra is all set to launch the S101 which will take on the popular selling Maruti Wagon R. The crossover hatchback will also get a petrol engine along with a diesel unit.

Mahindra S101 Test Mule
The S101 will become Mahindra’s entry-level model and will be a volume product

The compact SUV segment is attracting many buyers in India since the launch of the Renault Duster and Ford EcoSport. With the launch of Mahindra’s TUV300, the competition has further increased. Now Mahindra is working on a new compact crossover which is already under development with the code name S101, it will compete with Maruti Suzuki’s Wagon R in the hatchback space. The S101 is expected to launch in April 2016 and its profile will be completely different from Mahindra’s current utility vehicles.

The company intends to offer a different appeal with the S101 and plans to enter the compact car space which has the maximum market share in the Indian automobile industry. This project might also see Mahindra entering the petrol segment and it is clear that the automaker definitely wants to generate volumes with this upcoming vehicle. The car has already been spotted testing several times with heavy camouflage.

What can be made out from the pictures is that Mahindra has followed a very unique design concept for the S101 than its current product range and its looks quite refreshing. The rear doors get Chevrolet Beat type hidden door handles. There is a sloping roofline which looks stylish but there is no compromise with the headroom as the S101 has a good height. There is large amount of gap between the tyres and body of the car which somehow gives a bad effect to the stance of the vehicle but the tyre size can be different when it is launched. The S101 will probably house the same 84 PS diesel engine that powers the TUV300.

Unconfirmed reports suggest that Mahindra could price the S101 (could be called XUV100) in the range of Rs. 4 to Rs. 6 lakhs. This vehicle will definitely attract compact car buyers because of its price and positioning. Customers now days give more attention to the price of the vehicle rather than its type which could be a hatchback, crossover or an SUV. This is Mahindra’s first venture into this segment and with the S10, they would look to establish themselves as a key player and give its rivals a tough fight.

2015 Mahindra S101 Test Mule India
The Mahindra S101 will help the company boost its market share among tough rivalry