Mahindra & Mahindra (M&M) has introduced a new multi-purpose utility vehicle to the Indian market.

The Xylo will compete mainly with Toyota Motor Corp.’s Innova vehicle, but it is targeted also at sedan customers, said Rajesh Jejurikar, chief of operations at M&M’s automotive sector.

The Xylo has a 2.5-liter diesel engine, Jejurikar told a news conference, adding that its base model will cost INR624,500 at New Delhi showrooms while the top-end version will be sold for INR769,000.

“With the launch of the Mahindra Xylo, the era of sedans is under serious threat,” said Anand Mahindra, the company’s vice-chairman and managing director. “The sedan has long been considered the ultimate in high-end mobility, but the Xylo is all set to change this perception.”

Pawan Goenka, president of Mahindra’s automotive division, said the company will produce several new products based on the Xylo platform over the next two to three years.

He said the company is currently producing 60 Xylo vehicles per day and that it can make up to 250 units of the Xylo and Scorpio daily in two shifts at its factory at Nashik in the western state of Maharashtra.

Shipments to other right-hand drive markets – including South Africa – are planned.