EXCLUSIVE: M&M set to enter the hybrid vehicle market in 2025-26

Having created a buzz around EVs, Mahindra & Mahindra, India's largest SUV maker by revenue, plans to expand its powertrain choices to include various hybrid technologies. Sources familiar with the matter indicate that the company is exploring hybrid powertrains, from strong hybrids to range extenders, to broaden its portfolio.

Hybrids use both a gasoline engine and an electric motor to directly power the wheels, prioritizing fuel efficiency. Range extenders are primarily electric vehicles, using a gasoline engine solely as a generator to recharge the battery and extend the electric driving range.

A strong hybrid system is being studied for the compact SUV 3XO under project S226. The 3XO hybrid is scheduled to hit the road by 2026.

Range Extender Hybrids are being considered for the existing Inglo platform models, M130 and M330. Sources say the company's final decision on whether to proceed with them will be defined by the response to the EVs, BE 6 and XEV 9E. Technical development and design work for range extenders on the INGLO Platform have begun. The final decision on a market launch is likely to be taken in the next six to eight months.

These models could add approximately 40,000 to 50,000 units annually, offering different alternatives to prospective buyers exploring hybrid vehicles from competitors.

Mahindra & Mahindra did not respond to an email request for comment.

Japanese automakers Suzuki and Toyota are the leaders in the country's hybrid vehicle segment, with their mid-size SUVs, the Grand Vitara Hybrid and the Toyota Urban Cruiser Hyryder.

The Japanese duo will likely add two more models with a hybrid powertrain to the C-segment SUV market in 2025. Market leader Maruti Suzuki has started working on a Range Extender solution for compact cars to popularize hybrid technology in the country.

In 2024, hybrid and EV vehicles were in close competition, with EVs slightly outselling hybrids in the previous year.

South Korean carmakers Hyundai and Kia have already started developing affordable hybrid solutions for the Indian market. Skoda Auto Volkswagen and JSW MG Motor also plan to introduce hybrid alternatives for the Indian market in the coming years, even as more EV alternatives are launched in 2025.

While EVs accounted for 2.4% of the overall passenger vehicle market in the prior year, with retail sales of over 90,000 units, hybrids were slightly lower at 85,000 units, or 2.1%.

Due to the slower-than-expected pace of EV adoption in 2024 and the sustained challenge surrounding charging infrastructure, many prospective buyers started opting for hybrid vehicles or alternate internal combustion engine models.

Mahindra & Mahindra views hybrid technology as a stepping stone towards full EVs. In one of its quarterly earnings media conferences, Anish Shah, MD and CEO, said, “It's a slightly different powertrain. And to the extent that it's required, we'll be ready with that. If there is a significant change in the demand for hybrid vehicles and our customers ask for it, then we'll move into it much faster,” he added.

Rajesh Jejurikar, Executive Director and CEO of Automotive and Farm Business, does not believe hybrids pose a significant threat to EVs in India.

"We don’t see hybrid-wanting customers actively cannibalizing us, except in very few segments at an appropriate time. Depending on how the category is moving, we will look at hybrids whenever we need,” he said recently.