Mahindra has expanded the XUV500’s line-up by introducing a new trim level – W3. Priced at Rs 12.22 lakh (ex-showroom Mumbai), it becomes the new entry-level trim for the seven-seater SUV. Compared to the W5 trim, which earlier held the title of being the least expensive derivative, the W3 costs nearly Rs 59,000 less.

As you’d expect, the price difference between the W3 and the W5 trim levels is because the new entrant has less to offer. Compared to the W5 trim, the W3 loses out on an audio system, wheel covers and rear wiper with washer. That means the entry-level trim has retained features like disc brakes on all wheels, follow-me-home headlamps, a mobile charging point, remote tailgate opening, electrically adjustable ORVMs, projector headlamps, micro-hybrid tech, roof rails, dual airbags and ABS with EBD.

Under the bonnet is the same 2.2-litre, 4-cylinder turbo-diesel engine. It is good for 155PS of power and 360Nm of torque. The only transmission option available is the 6-speed manual unit. As for the 6-speed automatic transmission, it is available in W7, W9, W11 (O) and G trim levels. Here’s what Veejay Ram Nakra, who is the chief of sales and marketing for the automotive division at Mahindra & Mahindra Ltd., said in an official release:

Today the launch of the W3 version makes the vehicle much more accessible to a wider range of customers. With its excellent value proposition, I am confident that this new variant will resonate with a whole new set of our customers.

The new stripped-out trim level manages to undercut the entry-level Tata Harrier, a direct competitor, by approximately Rs 48,000. Apart from that, the Mahindra XUV500 also faces heat from the Jeep Compass. By the end of June this year, the competition will further heat-up with the introduction of MG Hector.