As consumer preferences and infrastructure challenges evolve, manufacturers are adjusting their strategies to stay ahead.
Mahindra, once a strong proponent of an all-electric future, is now planning to introduce hybrid powertrains for its XEV 9e and BE 6 electric SUVs. This shift reflects a broader pivot towards hybrid technology, aimed at delivering improved fuel efficiency, lower emissions, and flexible driving modes.
Mahindra's plans involve pairing a 1.2-liter, three-cylinder turbo-petrol engine with an electric motor in a strong hybrid setup. The company may also deploy a range-extender hybrid (REH) system on select larger models. Additionally, Mahindra has revealed plans to launch a series-parallel hybrid version of its compact XUV 3XO by 2026, signaling a long-term hybrid strategy that complements its electric ambitions.
Despite lagging EV adoption due to limited charging infrastructure, high battery costs, and range anxiety, hybrids are gaining traction faster than anticipated. In 2024, hybrids accounted for 2.1% of India's passenger vehicle market, with around 85,000 units sold. EVs slightly outperformed, representing a 2.4% market share.
In April 2025, India saw the sale of 8,754 hybrid vehicles, with the Maruti Grand Vitara and Toyota Urban Cruiser Hyryder accounting for 99% of these numbers. State-level incentives, including road tax exemptions for hybrids, have further accelerated adoption.
Mahindra's shift aligns with a growing trend among Indian and global players. Maruti Suzuki is working on affordable REH systems for popular models, while Hyundai is preparing to launch the Palisade hybrid. Skoda Auto Volkswagen and JSW MG Motor have also confirmed plans to introduce hybrid vehicles in the coming years.
While manufacturers take a pragmatic approach by focusing on hybrids and CNG-powered vehicles, they must be careful not to fall behind in the electric vehicle race, especially as competitors aggressively expand their EV portfolios.
Mahindra is shifting its focus towards hybrid powertrains for its electric SUVs, following a broader industry trend towards hybrid technology, aiming to improve fuel efficiency, lower emissions, and offer flexible driving modes. The company plans to launch a series-parallel hybrid version of its compact XUV 300 by 2026, as hybrid vehicles are gaining traction in India, accounting for 2.1% of the passenger vehicle market. Other automakers, including Maruti Suzuki, Toyota, Hyundai, and Honda, are developing hybrid models tailored for Indian conditions, amidst a pragmatic approach to sidestep EV infrastructure challenges.