Just before Mahindra and Renault broke up, we had heard about the Logan planning to surprise everyone with a shorter wheelbase.

The huge sedan failed to earn popularity among individual buyers and remained to be a favourite only among taxi owners. We had heard that the 4.2-metre length of the car would reduce to 4 metre. The car would then fall into the small car category, and would hence, also be able to enjoy the 10 per cent excise benefit. So, does that mean that the leading MUV maker has been infected with the ‘small car’ disease? Yes, the small car disease has spread to Mahindra & Mahindra.

The car maker is now developing a smaller version of the Xylo, or, so do our friends at Auto Car India say. The mini Xylo is out in Rajasthan under the scorching sun, undergoing hot weather testing. This mini Xylo is less than four metre long.

For your information, the current Xylo is 4520 mm long. So, over 500 mm has been chopped off? Yes, we all know that the spotlight is now on the mini-MPV segment. Now, our new mini Xylo will come with a diesel engine having less than 1.5 litre capacity to qualify as a ‘small car’ and avail a significant 12 per cent saving in excise duty.

Auto Car India says that the new car uses a shortened version of the present Xylo’s body-on-frame chassis and the current 2.5 CRDe engine has been slimmed down as well. One cylinder has been removed and the engine capacity has been reduced from 2.5 litre to less than 1.5 litre.

The mini Xylo will have a three cylinder engine and the bore and stroke too have been reduced. The car will carry just two rows of seats, and so, the seating space will be just right for just five passengers. With the third row being chopped off, the new Xylo looks like a giant hatchback, doesn’t it?

Finally moving to the pricing, what tag do you think the junior Xylo is going to carry? Auto Car India believes the pricing will be aggressive. They estimate it to retail for around Rs 5 Lakh and believe that the car will go on sale sometime in 2011.

This new model could crack open a new segment which is presently occupied by the low key Premier Rio, the only SUV in the sub-4 metre category. First, thinking about a smaller Logan and now coming up with a smaller Xylo; what’s happening Mahindra? Is all well with you?

Image Courtesy: AutoCarIndia