^^^ IMHO, Xylo will not affect the Innova. there is a 3 Lac price difference between them, model to model. Those who have the cash, will not opt for the Xylo, those who dont, cannot opt for the Innova. So they cater to different segments.
By the way, was going through Xylo's website and what i really liked was -
Mahindra Xylo
The Xylo D4 has all the features you need in your MUV... power windows, power steering, tilt steering, rear AC vents, rear wash & wiper, body coloured bumpers, etc. all for 7.5 Lacs.
A similarly equipped Invova (GX) costs a cool 3 Lacs more. Infact this variant seems to be the best choice for taxi operators as it comes with all the features but also with the less powerful but more economical m2Dicr engine.
Secondly, I loved the fact that even the base variant (E4) with the more powerful mEagle engine has ABS+EBD as an option. This costs just 7.75 Lacs & is the best option for private buyers who does not seek too many frills like DDAS, alloys, fog lamps, etc. With ABS, it costs 8.06 Lacs.