Indian automobile manufacturing giant Mahindra and Mahindra is reportedly preparing for expanding its portfolio in SUV segment through the new version of its compact SUV, the Mahindra XUV 3XO, with the addition of a factory-fitted CNG variant which is expected to debut by late 2026 or early 2027.
While the company may be relatively late to the CNG segment as compared to rivals, the launch of the XUV 3XO CNG will mark the company’s first passenger vehicle in this space. The upcoming CNG based SUV will rival against established offering such as the Tata Nexon CNG and Maruti Suzuki CNG, both of which have already gained traction among cost-conscious buyers.
Mahindra XUV 3XO CNG Powertrain and Engine
The upcoming CNG version is likely to be paired with Mahindra’s 1.2-litre mStallion turbocharged MPFi petrol engine; this engine currently produces around 112bhp and 200Nm of torque in petrol guise. However, with CNG the output figures will likely drop slightly in CNG mode. The media reports claim that the company will not offer the more powerful TGDi unit with CNG due to the higher complexity and cost of integrating gas injection with direct-injection systems. The SUV is further expected to offer only a manual gearbox, as seen in most CNG vehicles in this category.
The company is also likely to adopt a modern dual-cylinder CNG tank layout to minimise compromise on boot space, an approach which is already seen in rivals such as the Nexon iCNG. Some reports also suggest that there is a possibility of innovative packaging solutions, consisting of a underbody tank placement, although details remain under the wraps.
Apart from expanding fuel choices, the introduction of a CNG variant will also help the company meet stricter fuel efficiency and emission regulations, consisting of upcoming CAFE 3 norms.
CNG vehicles market in India
With CNG vehicles already accounting for over 20 per cent of the passenger vehicle market in India, the move could significantly boost the sales of XUV 3XO’s sales and market share.
As other automobile manufacturers such as Renault, Nissan, and Skoda explores factory-fitted CNG options, the segment is posed for further growth. With the strong brand recall and feature-rich package, the XUV 3XO CNG could emerge as a compelling new entrant in India’s increasingly competitive compact SUV space.
Mahindra XUV 3XO launch and price
The company has not officially announced the launch of the CNG variant of XUV 3XO due to which it is tough to predict the price of the SUV. However, the company is expected to launch the CNG based SUV in late 2026 or early 2027.
Mahindra and Mahindra Market share
Mahindra and Mahindra continues to lead the SUV segment in India in terms of sales. The company sold more than 4 lakh SUVs consisting of Scorpio, Thar, and Bolero in FY2026. These cars contributed a significant chunk to the brand’s overall performance during the last financial year. Individually, the Mahindra Scorpio range, which consists of Scorpio N and Classic, has crossed the mark of 1,78,800 units last financial year.
Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
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