Mahindra & Mahindra has planned for Independence Day celebrations this year. The company is set to unveil four new SUV concepts – Vision S, Vision T, Vision SX, and Vision SXT – along with their new 'Freedom NU' monocoque platform. On the same day, a completely new Mahindra compact SUV will also make its debut. It is expected to be the next-generation Bolero Neo, featuring entirely different body panels and a new design language.

Starting with the powertrains, the new Mahindra compact SUV is expected to offer two diesel engine options: a 1.2L and a 1.5L, borrowed from the XUV300. The former will produce 109 bhp and 230 Nm of torque, while the latter three-cylinder motor is capable of producing 100 bhp and 260 Nm. While the existing Bolero Neo is only available with a manual gearbox, reports suggest that this new model is likely to be offered with both manual and automatic transmissions.

Mahindra & Mahindra is currently evaluating a hybrid powertrain for the Indian market. It is reported to debut in the XUV300 subcompact SUV in 2026. The new hybrid technology could also benefit other popular Mahindra SUVs, including the upcoming compact SUV. If planned, the new Mahindra compact SUV with a hybrid powertrain will arrive at a later stage. It's worth noting that the company hasn't officially revealed the model's name or powertrain details yet.

Spy images suggest that the new Mahindra compact SUV will take several design cues from the Thar.e, including round headlamps. It will have a differently designed grille incorporating Mahindra's new logo, a new bumper and fog lamp assembly, and a more upright nose. The SUV will also feature new flush-fitting door handles, new multi-spoke alloy wheels, more prominent body cladding, squarish wheel arches, shorter overhangs, a tailgate-mounted spare wheel, and new vertically stacked taillamps.

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