The Mini Xylo (name given by the journalist fraternity) code name the U203 has been caught testing with full white camouflage by Indianautosblog.com.  It is a truncated version of the Xylo and ducks under the four metre boundary set for cars to qualify for tax concessions and will feature a diesel engine with a capacity of less than 1.5 litres, again to qualify for the concessions.  It is believed that the engine will be a three pot version of the 2.2 litre mHawk and not a smaller version of the inexpensive M2DiCR engine that is of 2.5 litre capacity but hardly makes decent power.

Picture courtesy: Indian Autos Blog.com