Mahindra and Ssangyong have developed a new turbo diesel engine that comes with a 1.2 liter cubic capacity, in a three cylinder layout. This engine will be available in two states of tune, 75 Bhp and 90 Bhp. The upcoming S101 compact SUV, which will sit below the likes of the Mahindra Quanto and the Ford EcoSport, as a challenger to B-Segment hatchbacks will use the 1.2 liter turbo diesel engine in its 75 Bhp state of tune. The S102 compact SUV, a product that will rival the EcoSport, and that will be priced and positioned above the Quanto, will use the newly developed 1.2 liter diesel engine in 90 Bhp state of tune.

Mahindra will also sell the S101 and S102 compact SUVs with petrol engines. A 1.2 liter turbo petrol engine, in multiple states of tune, is said to be in the works. Both the Mahindra S101 and S102 SUVs have been developed with inputs from Ssangyong, the South Korean SUV maker that Mahindra acquired in 2011. A key aspect about the S101 and S102 crossovers is that they feature a monocoque body design and a front wheel drive layout as standard features. These factors give the SUVs the advantage of being light weight automobiles, and is expected to throw up benefits in terms of fuel efficiency.
The S102 will share its underpinnings with the Ssangyong X100 crossover, which also comes with an all wheel drive layout. While the S101 will make its India debut next year, the S102 is expected to hit Indian shores in 2016. Mahindra has already begun testing the S101 compact SUV extensively on Indian roads. A key design highlight of the SUV is said to be its six seat layout in two rows, in a sub-4 meter form factor. The spyshots of the S101 indicate a crossover that is much better proportioned than the ladder frame based Mahindra Quanto. Expect the S101 to be priced close to the 5 lakh rupee mark, with the S102 slotting in at about 6.5 lakh rupees.