Mahindra is planning to incorporate hybrid powertrains into its existing vehicle range. The company is exploring hybridisation for both internal combustion engine (ICE) models and its dedicated electric vehicle (EV) platforms.

Although Mahindra had previously stated that it viewed EVs as the future, the increased market interest in hybrid vehicles has led to a reassessment of electrified ICE powertrains.

In addition, the EV market has grown at a slower rate than previously expected. Given the investment in its battery electric vehicle (BEV) range, Mahindra is now also considering hybrid powertrains for these models.

The company is looking to expand its market presence through hybrid alternatives, particularly as it seeks to enhance the performance of its born-electric models and meet future targets more effectively. The company has set a monthly target of 5,000 units.

Details of Mahindra's hybrid plans

For its ICE models, Mahindra is reported to be working on a conventional series-hybrid system. For its BEV range, a range-extender hybrid setup is under consideration. In this configuration, a 1.2-litre petrol engine would operate solely as a generator to recharge the battery, which would then power the electric motors that drive the wheels.

Maruti is also developing a cost-focused, in-house range-extender hybrid system for models including the Fronx, Baleno, Swift, and a compact MPV.

Mahindra XUV 3XO Hybrid in development

In January 2025, it was reported that Mahindra is assessing a hybrid system for the XUV 3XO compact SUV.

Unlike the BEV-based range-extender system, the XUV 3XO is expected to use a series-parallel hybrid configuration. According to sources, this model will combine the existing 1.2-litre, three-cylinder, turbocharged petrol engine with a strong hybrid system.

The system will allow the combustion engine and electric motor to function jointly or independently, depending on conditions. The power source will be automatically selected to support fuel efficiency.

Hybrid and EV sales outlook in India

In 2024, hybrid vehicles accounted for 2.1% of passenger vehicle sales in India.

Electric vehicles, which faced delays in adoption and challenges related to charging infrastructure, recorded sales representing a 2.4% market share.

In April 2025, large number of hybrid cars and SUVs were sold. The Maruti Grand Vitara and Toyota Urban Cruiser Hyryder accounted for 99% of these sales. The increase in hybrid demand is partly attributed to recent government initiatives promoting hybrid adoption, such as offering road tax exemptions similar to those available for EVs in some states.

Current trends indicate that the transition to full electrification is proceeding more slowly than originally forecast, both in India and globally. In India, EV market penetration surpassed 4% for the first time in May 2025.

However, the government's target of 30% penetration by 2030 remains a long-term objective. In other markets, the European Union is re-evaluating its 2035 zero-emissions target, while in North America, policy positions favouring internal combustion engines suggest continued demand for ICE vehicles.

Upcoming hybrid models from other manufacturers

Hyundai is planning to launch the Palisade hybrid SUV in the Indian market. Skoda Auto Volkswagen and JSW MG Motor are also preparing to introduce hybrid models in future product cycles.