The 125cc scooter comes with features such as accessible mobile charging point, illuminated underseat storage of 22 litres, 4-in-1 anti-theft key and side stand safety buzzer.
"UZO 125 is targeted at youth looking to own a scooter," Mahindra Two Wheelers' chief of operations Viren Popli said in a release.
It delivers ARAI mileage of 59 kmpl and comes in four colors-Racetrack Black, Colt Black, Victory Violet and Blazing Blue.
Mahindra Two Wheelers had last month said it plans to introduce up to four new products, including a scooter, a bike in entry level segment and variants of existing products, this year.