Hybrid Momentum Builds in India Amid Slower EV Adoption

As the Indian automotive landscape evolves, manufacturers are adjusting their strategies to meet shifting consumer preferences and real-world infrastructure challenges.

Mahindra, once vocal about an all-electric future, is now preparing to introduce hybrid powertrains for its XEV 9e and BE 6 electric SUVs, reflecting a broader industry pivot towards hybrid technology.

According to Autocar India, Mahindra plans to pair a 1.2-litre, three-cylinder turbo-petrol engine with an electric motor in a strong hybrid setup. This dual powertrain aims to deliver improved fuel efficiency, lower emissions, and flexible driving modes—features increasingly important to Indian buyers.

The company may also deploy a range-extender hybrid (REH) system on select larger models. Additionally, Mahindra has revealed plans to launch a series-parallel hybrid version of its compact XUV 3XO by 2026, signaling a long-term hybrid strategy that complements its electric ambitions.

Despite considerable buzz around electric mobility, EV adoption in India has lagged expectations due to limited charging infrastructure, high battery costs, and persistent range anxiety. However, hybrid vehicles are gaining traction faster than anticipated, accounting for 2.1% of India’s passenger vehicle market in 2024 with around 85,000 units sold. EVs slightly outperformed with over 90,000 units sold, representing a 2.4% market share.

In April 2025 alone, India saw the sale of 8,754 hybrid vehicles, with the Maruti Grand Vitara and Toyota Urban Cruiser Hyryder accounting for 99% of these numbers. State-level incentives, including road tax exemptions for hybrids, have further accelerated adoption.

Mahindra’s shift aligns with a growing trend among Indian automakers such as Maruti Suzuki and global players like Toyota, Hyundai, Kia, Renault, and Nissan, all developing hybrid models tailored for Indian conditions. Honda has also refocused its global strategy towards hybrids, citing their better near-term viability.

Maruti Suzuki is working on affordable REH systems for popular models including the Fronx, Baleno, and Swift, while Hyundai is preparing to launch the Palisade hybrid. Skoda Auto Volkswagen and JSW MG Motor have also confirmed plans to introduce hybrid vehicles in the coming years.

While manufacturers take a pragmatic approach by focusing on hybrids and CNG-powered vehicles—leveraging government incentives and sidestepping EV infrastructure challenges—they must be careful not to fall behind in the electric vehicle race, especially as competitors aggressively expand their EV portfolios.