New seven-seater models such as the MG Hector Plus, Tata Safari and Hyundai Alcazar are currently in a sub-segment above. The XUV700 will obviously be bigger and better than its predecessor (Mahindra XUV500).
It goes without saying, the new SUV will be costlier than the previous one. Now, this will leave a huge gap between it and the XUV300, and that’s where the new SUV (codename: S301) will be positioned, the report said.
The S301 may come with a revised version of the 1.5-liter diesel engine found in the XUV300. It will also carry a 1.5-litre turbo-petrol from the mStallion family with an output of approximately 160 hp. The 1.5-liter turbo petrol engine was showcased at Auto Expo 2020.
The all-new SUV is expected to be priced around Rs 10-17 lakh, ex-showroom.