Mahindra U321 engine to be 1.6-litre diesel unit

Mahindra has developed a new 1.6-litre, four-cylinder diesel engine producing 130 HP of power along with SsangYong. This will eventually make it to two upcoming models, codenamed S201 and U321. The S201 is a compact SUV based on the SsangYong Tivoli. Both the S201 and U321 are expected to be launched in 2018.

With this, Mahindra will be expanding the mFalcon range of engines, which currently has the 1.2-litre, 3-cylinder engine that does its duty on the KUV100. The Mahindra U321 is an all-new MPV being developed by Mahindra’s North American Technical Center and its test mules have been spotted multiple times. We had also spotted the Tivoli in Mumbai, at Mahindra’s office few days back.