Mahindra U321, Mahindra MPV
Mahindra TUV300 teaser (representational image)PR Handout

Utility vehicle specialist of the county Mahindra & Mahindra has recently confirmed its plans to invest Rs 1,500 crore on its Nasik and Igatpuri plants in Maharashtra. The Mumbai-based automaker also confirmed a project codenamed U321. U321 is understood to be a premium MUV as it was already caught in camera while testing last year.

Also read: Mahindra XUV500 Sportz limited edition launched

Interestingly, Mahindra is gearing up for the launch of an MPV at a time when MPV segment has lost its sheen with the advent of new car segments. Recent MPV launches such as Honda Mobilo and Renault Lodgy were far from a success. Mahindra's own MPV, the Xylo, is also not doing great in terms of sales.

Having said that, premium MPV segment with a pricing starting from Rs 15 lakh is a different ball game. Toyota's workhorse Innova has got a major rework in mid-2016 and the sales skyrocketed. Tata launched Hexa in January 18, 2017 and initial response points to success. Performance of both Innova Crysta and Hexa proves that there is enough potential in the market for a premium people carrier. Mahindra is planning to capitalise on this interest.

The U321 will be an offspring of Mahindra's North American Technical Centre (MNATC) in Michigan and Mahindra Research Valley in Chennai. It is believed to be the third Mahindra vehicle to have a monocoque frame after XUV500 and KUV100. The spy shots indicate U321 will have a typical MPV silhouette. Mahindra MPV will have a chunky front and rear bumpers. The test mules also feature sloping windshield and bonnet, and short overhangs. The increased proportions are expected to free up more leg room and interior space.

On powertrains, Mahindra is expected employ 2.2-litre mHawk diesel engine in the U321. If not, downsized 1.99-litre mHawk diesel engine will find a place in the MPV. It has been reported that Mahindra is working on a number of petrol engines for its future vehicles. Among them, a 1.8-litre petrol unit may power the new MPV. The launch of Mahindra MPV is expected by the end of 2017 or at the Auto Expo 2018.

Also Read