
Mahindra is reportedly gearing up to launch its first hybrid vehicles as the Indian automaker aims to take advantage of the growing demand for petrol-electric powertrain technology.
Mahindra is among the few automakers worldwide that currently do not offer any hybrid models, which means its Australian division lacks a ready-made hybrid vehicle to quickly introduce into its local lineup.
Last year, Mahindra unveiled two all-electric vehicles (EVs) in India—the XEV 9e and the BE 6 electric SUVs—as part of its shift from being primarily a commercial vehicle manufacturer to becoming a fully established mainstream automotive brand.
Although these electric models are planned for future release in Australia, Mahindra Automotive Australia acknowledges the rising popularity of hybrids in the local market, noting that the hybrid-only Toyota RAV4 was Australia’s best-selling SUV in both 2024 and so far in 2025.
“Hybrids are definitely part of what I call ‘the study’—I’m referring to it as the study phase—and for now, that’s all I can say,” Mahindra’s head of international operations, Sachin Arolkar, told HARJA during the recent launch of the petrol-powered Mahindra XUV 3XO. This model is the brand’s most compact SUV to date and competes with the budget-friendly Chery Tiggo 4 small SUV.
“From a powertrain migration perspective, Mahindra has mainly focused on diesel engines. Over the past few years, we have expanded our range to include petrol engines as well.”
“Now, our priority has shifted towards the EV phase, while still keeping all other options open.”
Sales of new hybrid vehicles in Australia surged by 76 percent in 2024, followed by an additional 14.9 percent growth in the first half of 2025.
In the first half of this year, hybrids represented 15 percent of all new vehicle sales in Australia, while electric vehicles (EVs) accounted for 7.6 percent, marking a slight decline of 0.4 percent.
Hybrid sales have also risen in the world’s two largest automotive markets—China and the US. Additionally, many manufacturers, including Volkswagen (which Mahindra collaborated with on EV technology), Toyota, Honda, Porsche, Mercedes-Benz, and Volvo, have pushed back their earlier self-imposed deadlines to phase out internal combustion engine (ICE) vehicles in favor of selling only EVs.
Meanwhile, brands like Audi have committed to continuing development of combustion engines, and several other premium manufacturers are focusing on V8-based plug-in hybrid powertrains.
“We’re not going all-in on EVs like some other brands,” Mr. Arolkar said. “We have never stated, for instance, that we will phase out internal combustion engines within a specific timeframe. We definitely intend to keep growing and evolving our ICE options.”
Mahindra has unveiled an ambitious plan to increase its local sales six-fold by 2030 and break into Australia’s top 15 automakers by volume. To achieve this, the company intends to launch at least one new model in the Australian market each year.
The new XUV 3XO, offered at an introductory price that temporarily makes it Australia’s cheapest SUV, slots below the XUV 700 mid-size SUV and the Scorpio large SUV in Mahindra’s local lineup. It is expected to become the brand’s best-selling model in Australia.