This took us completely by surprise. Mahindra Xylo hatch or a 5 seater Xylo was spotted testing in Rajasthan and was promptly snapped by Autocar reader Chandra Prakash Godara. The Xylo hatch (the way we like to call it) will be less than 4 mtrs long and will be powered by a less than 1.5 ltr CRDe engine to be eligible for a 12 percent excise duty saving (by being classified as a small car).

The current 2.5 CRDe engine will be shedding a cylinder and the Xylo hatch will be running on a 3 cylinder motor. The Xylo hatch is expected to hit the road in 2011 and will be competing against the Premier Rio and will be priced around the 5 lakh mark.

Source – Autocar India