TL;DR
- Mahindra to enter the hybrid cars market in India in 2025.
- XUV700 and Scorpio Petrol SUV will be the first launches.
- Partnership with Skoda Volkswagen.
Hybrid cars are gaining popularity among car lovers in India nowadays. Brands like Maruti Suzuki and Toyota are ruling this category with models like Grand Vitara and Innova Hycross. Sensing that the trend will gain momentum in coming years, Mahindra too is all set to jump the train by launching hybrid models next year.
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Reports claim that the first Mahindra petrol-hybrid model will launch in 2026. The new Mahindra XUV700 and Scorpio Petrol Hybrid SUV will be the first to have petrol-hybrid powertrains. The company has announced a total of INR 27,000 crore in the next five to seven years in its automotive business. Mahindra claims a portfolio of 9 ICE SUVs and 7 electric vehicles in India in the next 2-3 years.

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Mahindra’s upcoming Hybrid powertrains will have a tiny electric battery that will charge from energy recuperation or IC engine. The battery will power an electric motor that will propel the car for around one km or more of pure electric range. Mahindra’s Petrol-Hybrid powertrain will be shared with Skoda Auto Volkswagen India. The companies have been in discussions for a while now for a 50:50 JV for sharing costs, risks, technology, and platforms. The future might see strong hybrid versions of Kushaq, Taigun, Virtus, and Slavia. This is being done for cost-effectiveness as rather than sourcing the tech from the Volkswagen group, Mahindra will develop it on its own.
XUV700 will be based on a 2.0L Turbo Petrol engine and there might be an increase in total system power as opposed to current 197bhp figures.

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Not just Mahindra, Kia is also about to enter the Hybrid category in India by launching its first petrol-hybrid SUV in 2027. The hybrid will be a 7-seater SUV to rival the likes of Mahindra XUV700 and Tata Safari.
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