Mahindra XUV700, Scorpio petrol hybrid SUVs likely to be launched

With the launch of Mahindra XUV700 and Scorpio Petrol Hybrid versions, we could see a jump in fuel efficiency figures

While carmakers like Tata Motors, JSW MG Motor and Mahindra Auto are investing heavily in electric vehicles, Maruti Suzuki, Toyota Kirloskar Motor and Honda Cars India have gone down the hybrid route. Mahindra, aware of the wider acceptance of hybrid technology, has jumped on the bandwagon.

XUV700 and Scorpio petrol hybrid

Powerful hybrid vehicles are becoming increasingly accepted by Indian consumers despite the lack of generous tax incentives for electric vehicles and the relatively high upfront cost of such vehicles. They promise improved fuel economy on short commutes, especially in cities where energy recovery opportunities are abundant.

While Mahindra Auto has been planning to launch new electric vehicles, the company seems to be implementing a powerful hybrid vehicle. According to a recent report, industry insiders revealed Mahindra’s expectations for hybrid technology. While hybrid cars are taxed at a whopping 43%, fully electric cars are taxed at 5%.

Development work on Mahindra’s powerful hybrid system has begun and the technology is likely to be launched in 2026. According to the Indian government’s Vahan portal, the market share of hybrid vehicles grew by about 0.5%. Mahindra may see hybridization as a profitable venture.

Both the XUV700 and Scorpio N have been on sale for a while, and 2026 might be a good time for an update. According to reports, the updated XUV700 will be Mahindra’s first vehicle to launch a petrol hybrid system based on a 2.0L turbo petrol engine. Total system power is likely to increase compared to the current 197 bhp figure.

Sharing hybrid powertrain with Skoda?

Mahindra’s upcoming hybrid system, technically called a self-charging hybrid system, has a tiny battery that can be recharged through energy recovery (regenerative braking) or the internal combustion engine. The battery will power an electric motor that will only drive the car for about a kilometer or more of pure electric range.

The report also mentions that Mahindra’s upcoming petrol hybrid powertrain will be shared by Skoda Auto Volkswagen India. Notably, Mahindra and Skoda have been in discussions to form a 50:50 joint venture to share costs, risks, technology and platforms. There may be Kushaq, Slavia or even Strong Hybrid versions of Taigun and Virtus in the future.

Mahindra will develop a hybrid powertrain due to cost-efficiency considerations, people familiar with the developments said. Instead of sourcing this technology from Volkswagen Group as its viability in the Indian market may become expensive and price competitiveness cannot be achieved.

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