Maruti And Mahindra To Launch Compact Hybrid SUVs In 2026 To Compete In Growing Hybrid Segment

Amit Singh

06 Aug 2025, 07:01 PM

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Two new compact hybrid SUVs planned for launch in 2026
Focus on better fuel efficiency and greener mobility

Hybrid cars sold more than electric cars in the first half of 2025 and exceeded 52,000 units, with a year on year increase of 62.5 percent. Toyota has dominated the strong hybrid space with approximately 81 percent share of vehicles such as Innova Hycross and Urban Cruiser Hyryder. To exploit this rising market, Maruti Suzuki and Mahindra & Mahindra are preparing to launch their versions of compact hybrid SUVs in the year 2026.

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Maruti’s First Strong Hybrid, The Fronx Hybrid

Maruti Suzuki well known for its fuel efficient cars, is now shifting gears to hybrid technology. Its first offering will be based on the popular Fronx crossover, making hybrid technology accessible to a wider audience.

Powertrain

The upcoming Fronx Hybrid is expected to feature Maruti’s Z12E three-cylinder petrol engine linked to an electric motor. Power will come from a 1.5kWh–2kWh battery pack, allowing short-distance electric driving in city traffic while the petrol engine charges the battery and provides backup power.

Design & Interior Tweaks

The Fronx Hybrid will look familiar but with subtle changes. Expect hybrid badging, updated aerodynamics, and minor interior changes such as a hybrid-specific instrument cluster. Features like regenerative braking and advanced infotainment software showing energy flow are likely.

Price Strategy

The hybrid trims will be priced 2-2.5 lakh above the petrol models, with emphasis on the top variants first. This strategy will make the car look expensive but efficient to purchase to an urban audience. This hybrid powertrain is not limited to the Fronx. The same setup is expected in the next-generation Baleno hatchback and a new compact MPV, showing that Maruti has a long-term hybrid roadmap.

Mahindra’s Hybrid Debut, The XUV 3XO Hybrid

Mahindra has earned its name in rugged SUVs and recently in electric mobility. But hybrids? That’s a new move for the company. The first step in this direction will be the XUV 3XO Hybrid, which will enter production in 2026.

Hybrid Setup

Mahindra is experimenting with strong hybrid systems and range extender technology. The XUV 3XO Hybrid is likely to feature the 1.2-litre turbo-petrol engine paired with a series-hybrid setup. In this system, the petrol motor mainly acts as a generator, while the wheels are driven by an electric motor, improving fuel economy, especially in city conditions.

Why Hybrid SUVs Make Sense in India

In India, the electrification movement is a slow process because consumers are affected by range anxiety and the high price of EVs would also be a limiting factor. Hybrids are a middle ground between the two, they provide cheaper running costs and lower emissions without asking too much change in habits by the consumer. These cars enable the car owners to refuel at the gas stations of the highest quality as they improve on the mileage and decreasing the tailpipe emissions. For manufacturers, hybrids help meet strict emission norms without shifting entirely to electric platforms.

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