Mahindra and Mahindra gave the existing Xylo a facelift treatment, and the utility-vehicle manufacturer will now be launching the compact version of the Xylo. The Xylo compact is based on the Xylo platform and will be less than 4 metres in length.

The Xylo compact will have a three-cylinder 1.5-litre diesel engine, which will help Mahindra further to get the excise cut even on the cubic capacity. Mahindra announced that the Xylo compact will be on sale during Diwali.