Sources believe that the U321 is slated to be a premium MPV that’s expected to take on the likes of the Renault Lodgy and the Toyota Innova Crysta. Mahindra has stated in their release that an investment of Rs 1500 crore is being pumped into their Nashik and Igatpuri plant in Maharashtra. While the inflow of funds will help upgrade the car production functions at the Nashik facility, the Igatpuri plant will benefit from increased manufacture and supply of engines.
As the spy picture suggests, a camouflaged Mahindra U321 MPV was spotted testing in mid-2016. This MPV is rumoured to get the same 140bhp 1.99-litre diesel mill that makes 320Nm of torque, and powers the current XUV500. Expect the same six-speed manual and six-speed auto ‘boxes to find their way to this MPV too.
Though there’s been no confirmation from Mahindra, the U321 MPV could be launched in the last quarter of 2017. Stay tuned for more information in the months to come.