Mahindra is preparing to enter the hybrid space in a significant way, with plans to introduce hybrid technology across both its internal combustion engine (ICE) and dedicated electric vehicle (EV) platforms. This marks a notable shift in strategy for the homegrown automaker, which had previously emphasized a fully electric future. However, with the hybrid segment gaining momentum and EV adoption growing at a slower-than-expected pace, Mahindra is now looking to diversify its powertrain offerings.
Dual Hybrid Strategy: For ICE and BEVs
The company is developing two distinct hybrid approaches. For its ICE vehicles, Mahindra is considering a conventional strong hybrid setup. Meanwhile, its born-electric models may adopt a range-extender hybrid configuration. In the latter, a 1.2-litre petrol engine would serve exclusively as a generator to recharge the battery, which would then power the electric motors driving the vehicle.
This hybrid flexibility aims to support Mahindra’s broader ambition of increasing monthly EV sales—currently at 2,604 units (May 2025)—to around 5,000 units. Much of this volume comes from its BEV lineup, but hybrid variants could help reach this target faster.
XUV 3XO to Lead Mahindra’s Hybrid Entry
One of the first Mahindra models set to benefit from hybridisation is the XUV 3XO. Sources confirm that the SUV will receive a strong hybrid system paired with its existing 1.2-litre turbo-petrol engine. The configuration is a series-parallel hybrid, meaning the engine and electric motor can work independently or together, with the system automatically optimizing power delivery for maximum efficiency.
This differs from the planned range-extender setup for Mahindra’s born-electric SUVs like the BE.06 and XUV.e9, which are expected to feature an engine that solely recharges the battery.
India’s Hybrid Market: Small but Growing Fast
Despite the relatively small market share, hybrid vehicles are gaining traction in India. In FY2024, hybrids made up 2.1 percent of total passenger vehicle sales, compared to EVs which accounted for 2.4 percent. Notably, in April 2025 alone, 8,754 hybrid cars and SUVs were sold. The Maruti Suzuki Grand Vitara and Toyota Urban Cruiser Hyryder made up 99 percent of these volumes, showcasing consumer preference for fuel-efficient alternatives with fewer charging constraints.
This rising interest in hybrids is also being encouraged by state-level incentives, with some governments offering road tax exemptions on par with EVs.
More Brands Join the Hybrid Race
Mahindra isn’t alone in betting on hybrids. Several other automakers are preparing to launch hybrid models in India. Hyundai, for instance, is working on bringing the Palisade hybrid SUV. The Skoda-Volkswagen Group and JSW-MG Motor also have hybrid products in the pipeline, aiming to tap into this expanding segment.
Global Trends Signal Slower EV Transition
Mahindra’s move mirrors a broader global re-evaluation of EV timelines. While EV sales are climbing, challenges like high upfront costs and underdeveloped charging infrastructure remain. In India, EV penetration recently crossed 4 percent, but it’s still far from the government’s 30 percent target by 2030. Internationally, the EU is reconsidering its 2035 zero-emission goal, and political shifts in the US—particularly Donald Trump’s support for fossil fuels—suggest ICE vehicles may remain relevant for longer than anticipated.
Conclusion
By exploring hybrid solutions for both its ICE and EV platforms, Mahindra is positioning itself for a more flexible and balanced future. Whether through strong hybrids in its compact SUVs or range-extenders in its BEVs, the automaker is adapting to evolving market dynamics—and ensuring it remains competitive as India’s mobility landscape continues to transform.
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