Mahindra XUV at a car rally organised among ASEAN countries in India. (Representational Picture)CreativeCommons/PriyankuPhukan

Mahindra seems to be ready to enter the compact SUV segment with its S101 compact vehicles, fresh spy shots of which have surfaced online again. 

Mahindra S101, a strong rival of Ford's much acclaimed EcoSport in India has been spied testing in the country in Chennai. In the new set of images released by IndianAutosBlog , Mahindra's  S101 is seen heavily camouflaged, thus not revealing much details of the car. However, reports suggest that the car is yet to reach the final stage of production. The headlights and taillight of the car look cluttered in the picture.

The car is likely to make its entry into the highly competitive SUV market in early 2015, and is expected to carry the newly developed Mahindra petrol engine. A report by Motoroids suggests that the S101 is likely to be monikered Mahindra XUV300 and would be positioned below the company's XUV 500. Mahindra S101 compact SUV would also borrow XUV500 features.

The company is also rumoured to launch an automatic gearbox variant of its iconic sports utility vehicle XUV500 by mid-2015. Unveiled in September 2011 across five Indian cities, the cheetah-inspired XUV500 drew massive attention due to its stylish frame and state-of-the-art technologies, which include GPS navigation system, automatic climate controls, voice vommands and a sophisticated infotainment system, complete with 6-inch LCD touchscreen, DVD player, Bluesense technology, iPod connectivity, along with six speakers.

In March, car maker Mahindra & Mahindra posted a marginal decline in total sales at 51,636 units. The company's domestic sales stood at 48,490 units as against 49,225 in the corresponding month last year. The sales of company's Scorpio, XUV500, Xylo, Bolero and Verito stood at 23,433 units as against the 25,847 units in March 2013.

(Edited by Vanilla Sharma)