Mahindra is currently working on downsizing the engines of the Scorpio and the XUV500. The present 2.2-litre four-cylinder units will be in violation of the recent Supreme Court judgement which will ban the sale of diesel vehicles with engines above 2000cc capacity from January 1 to March 31, 2016.
The automaker is believed to have taken the step considering the fact that the Supreme Court may extend the ban period beyond March 31. This will put it in a position where it would not be able to retail its top two selling cars in the NCR.
Further, it is believed that the automaker, now stuck with over a 1,000 units of both vehicles in its NCR supply chain, will move the stocks to other parts of the country before it introduces any kind of new model in the region.
It seems possible that the automaker may downsize the engines to just under 2.0-litres for both engines to meet the conditions but not lose too much power and torque from the engines.