The Mahindra U321 MPV which replaces the Xylo has been spotted testing yet again in India.

Mahindra U321 Front
Mahindra has announced a Rs. 1500 crore investment on this MPV

The upcoming Mahindra U321 MPV has been spotted yet again testing on Indian roads. MotorBeam readers Ben Raja and Mugilan Perumal spotted the car in Chennai and clicked the pictures for us. The spotted MPV has been heavily camouflaged.

The test mule sports the usual 5-spoke alloy wheels equipped with disc brakes all-around, as seen the last time. The U321 has traditional MPV attributes to it, for instance, the large windows and doors.

Looking at the headlamps, fog lamps, LED DRLs, turn indicators on the ORVMs and the tail-lights, we could expect this to be a production ready car. Mahindra hasn’t yet confirmed a launch timeline for this vehicle. This MPV will rival the Toyota Innova Crysta, Renault Lodgy and Maruti Ertiga.

The U321 could be powered by a new 1.6-litre diesel engine or the 1.5-litre diesel that does duty in the TUV300. If some reports are to believed, Mahindra might as well plonk the 2.2-litre diesel that does duty on the Scorpio and XUV500. Mahindra, will, of course, tune the engine differently in the MPV. The automaker is also expected to offer a 1.5-litre petrol engine in this MPV.

Designed by Mahindra’s team at the MNATC (Mahindra North American Technology Center), expect this MPV to come with all the goodies like a multi-function steering wheel, touchscreen infotainment system, automatic climate control, rear AC vents and 3rd-row seating.

Mahindra Xylo Replacement

– The Mahindra U321 has been spied testing again
– The U321 replaces the Xylo
– The spotted car revealed LED DRLs, alloy wheels and tail-lights
– The Mahindra U321 is expected to be launched by the end of 2017

Mahindra U321 Side Profile
The MPV will have an airy cabin courtesy those large doors and windows
Mahindra U321 Side And Rear
The U321 seems to be production ready now
Mahindra U321 Rear
The MPV is built on a monocoque platform
Mahindra U321 Tail-Light
Mahindra might offer this MPV in 7-seater and 8-seater configurations