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The V-Cross Z-Prestige trim comes with a 1.9-litre diesel engine mated to a six-speed automatic transmission.
Despite being smaller in displacement, the new 1.9-litre engine is more powerful and fuel efficient, Isuzu Motors India said in a statement.
The new engine churns out 150 PS of power and 350 Nm of torque, it added.
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The company said it has commenced bookings for the model.