A CNG-powered XUV 3XO would give cost-sensitive buyers in the highly competitive subcompact SUV segment an new option.
Mahindra has released a teaser on its social media channels, hinting at something new related to the XUV 3XO. Speculation in the comments aligns with ongoing rumours and leaks that the company is set to unveil a CNG-powered version of this popular subcompact SUV. This will mark the first CNG consumer model from Mahindra, which has previously focused on petrol, diesel, and electric powertrains for its wide range of SUVs.
Mahindra has in fact previously stated that CNG was not on its roadmap, though that position softened last year. In an interaction last year, Nalinikanth Gollagunta, CEO, Automotive Division, M&M, said the company might consider the option if technology got to the point where a CNG engine could offer “performance on tap”, one of the brand’s key propositions to its customers.
That, plus the current regulatory environment around emissions norms might have finally convinced Mahindra to dip its toes into this fast-growing segment. CNG cars have gone from being seen as underpowered, and suitable only for the taxi market, to a viable mainstream option. In August this year, sales of CNG, electric and hybrid vehicles combined outsold petrol-powered ones for the first time ever.
The choice of the XUV 3XO to lead Mahindra’s CNG effort reflects its market positioning, with urban commuters a key demographic. This model is already available in petrol, diesel, and electric versions. Lower running costs will also appeal to buyers as global geopolitical factors continue to cause uncertainty around fuel prices. Key competitors including Maruti Suzuki and Tata Motors already offer CNG options in this segment. A factory-fitted CNG option from Mahindra could help the company meet its obligations under the upcoming CAFE III regulations and give customers a wider range of economical options.
