
Hybrids are becoming increasingly popular in India. Mahindra, India’s largest SUV maker, is reportedly exploring multiple hybrid powertrain options for its products. These include both strong hybrids and possibly even series hybrids (range extenders). This hybrid push aligns with the broader industry shift towards hybrids and alternative electrified vehicles. In this article, we will explain this hybrid push in detail.

Let’s begin by talking about the policy landscape. The CAFE 3 (Corporate Average Fuel Efficiency Phase 3) norms will come into effect from April 1, 2027.
Volume Derogation Factor (VDF) is essentially a "super credit" multiplier used to reward manufacturers for selling cleaner vehicles. For strong hybrids, the VDF value is 1.6 ( The previous CAFE 3 draft had proposed 2.0 as VDF). Plug-in Hybrids have VDF value of 2.5 and Range Extender hybrids are given a solid incentive of VDF of 3.0- equal to EVs. All manufacturers will have to comply with CAFE III norms to avoid penalties.
Mahindra is a manufacturer who sells large diesel SUVs. Popular models like the Scorpio, Thar, and XUV 7XO come with the choice of a 2.0L turbo-petrol engine and 2.2L diesel engine. The three-door Thar is also available with a smaller 1.5L diesel engine. The carmaker also has a strong portfolio of EVs- XUV 3XO EV, XEV 9e, BE6 and XEV 9S.

However, the EV sales haven’t matched early projections. This calls for additional electrified powertrains to compensate for the large diesels in calculating the overall scores and ensuring CAFE III compliance. Mahindra is reportedly readying both strong hybrids and Range Extender Vehicles (REVs).
Though we have had no confirmation or official word on it yet, Mahindra may eventually replace diesel engines with hybrid powertrains at least on some models. The next reason is the general market shift towards hybrids due to the various ownership hurdles that electric vehicles come with.
There has lately been no explosive growth in their adoption. The increase has, in fact, been slower than expected. Concerns around home-charging hurdles, and DC charging infrastructure that is still in developing stage have all been reasons for this.
Mahindra had earlier projected an EV penetration of 20-30 percent by financial year 2028 and committed over 1 billion US dollars towards the INGLO platform that underpins the Electric Origin Range. As it turns out, INGLO-based EVs have only managed to account for roughly 9 percent of the company’s total volumes in the last financial year.
This trend has been industry-wide and not just limited to Mahindra. Manufacturers in general, are now exploring greater powertrain flexibility- moving towards hybrids of different sorts. In the coming years, we will see the launch of multiple strong, series and plug-in hybrid models across segments and price ranges.

Autocar India reports that two hybrid SUV projects are already ongoing at Mahindra- W613 and W623. These are understood to be the XUV 7XO hybrid and the 9e series hybrid. The SUV is expected to be out in 2027 while the coupe could arrive sometime in 2028.
The XUV 7XO hybrid (W613) will have a strong hybrid setup as it is based on an existing internal combustion engine platform. It will reportedly be able to run on electric power for short distances and use the combustion engine to drive the wheels when required- much like what we see on models like the Hyryder. It will be one of the first hybrid models to roll out from Mahindra’s stable.

The second project, W623, is reported to be a range-extender hybrid based on the XEV 9e. The 9e, as you might recall, is based on the INGLO skateboard platform. This born-electric platform hasn’t been designed to accommodate a petrol engine, transmission or any of its ancillaries. Thus doing a conventional (strong) hybrid with this will be difficult.
Range Extender hybrids, on the other hand, will be the perfect alternatives. In this setup, a small petrol engine works at optimum RPM to generate electricity to charge the battery pack. This then powers the electric motor (s) that powers the wheels.
The report says that a 1.2-litre and a 1.5-litre engines are being considered for use on the range-extender version and that Mahindra has already begun technical studies and testing of the configuration. Even this will require significant re-engineering of the product and the platform itself.