Mumbai, May 3: The Indian automobile market is currently undergoing significant changes. Demand for green options, including electric, CNG, and hybrid vehicles, is on the rise alongside traditional petrol and diesel models. By 2026, green vehicles are expected to account for up to 30 percent of total passenger vehicle sales. In response to this trend, Mahindra is preparing to launch a new ‘green avatar’ of its popular SUV, the XUV 7XO. Recently, a new model of this SUV was spotted during testing on the roads.
Equipped with Hybrid Powertrain
There are discussions surrounding the new Mahindra XUV 7XO, suggesting it will feature either a ‘strong hybrid’ engine or a ‘flex-fuel’ model that runs on ethanol. According to a report from Rushlane, a fully covered XUV 7XO was seen during a test run near the Tindivanam Highway in Tamil Nadu. However, there were no significant changes observed in the exterior design of the test vehicle.
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Design Insights
The rear and side profiles of the car appear similar to the current model. However, it is anticipated that when the hybrid or flex-fuel version is launched, the company may introduce special badging and new color options. This spy shot has stirred excitement among automotive experts, as Mahindra has already announced its plans to work on ‘series-hybrid’ and ‘range-extender’ technologies for its vehicles.
Powertrain Details
In terms of performance, the XUV 7XO could become Mahindra’s first vehicle to feature a strong hybrid engine. This setup may be based on the existing 2.0-liter turbo petrol engine, which currently generates 203 bhp and 380 Nm of torque. With the addition of the hybrid system, significant improvements in overall power and fuel efficiency are expected.
Considering Flex-Fuel Options
On another note, the company is also exploring a flex-fuel (E85) version. Mahindra showcased its flex-fuel technology through the XUV 3XO at the 2025 India Mobility Show, which can run on petrol mixed with up to 85 percent ethanol. Currently, Toyota and Maruti Suzuki dominate the hybrid car market. In 2026, hybrid car sales in India surpassed 123,000 units, with the Toyota Innova Hycross accounting for nearly 50 percent of that share.
Expert Opinions
Mahindra’s new initiative will help meet the government’s ethanol blending (E100) targets while providing relief to customers from high petrol prices. Experts believe that after the XUV 7XO, Mahindra may also update the Scorpio-N with the same hybrid powertrain. These test images clearly indicate that Mahindra is moving beyond reliance on just diesel and petrol.
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