With the global shift in the energy landscape, hybrid and flex-fuel vehicles could see increased uptake in the future
Against the backdrop of a fast-evolving geopolitical situation, the auto industry will have to make some tough decisions. Demand for green options is on the rise, with electric cars, CNG and hybrids collectively contributing around 30% to overall passenger vehicle (PV) sales in FY2026. The industry is also witnessing a strong push from the government towards higher ratios of ethanol blending like E85 and even E100.
Amid this ongoing churn, a fully camouflaged XUV7XO has been spotted on road tests. While there are no obvious signs, it is possible that this test mule could be the strong hybrid version of the XUV7XO or E85 flex fuel powertrain. It has been reported earlier that Mahindra is working on regular series-hybrid options for its ICE SUVs and range-extender hybrid versions of its BEVs. Let’s check out more details on these developments.

XUV7XO spied – New green options possible
Spied from the rear, the test mule does not appear to feature any noticeable changes. A closer look at the partially visible tail lamps reveals the distinctive diamond-inspired detailing. Most other features such as the raked windshield, layered boot lid and prominent bumper match the outline and contours of the current model. Side profile is also the same as the current model.
Strong hybrid or flex fuel versions of the XUV 7XO are expected to get distinctive badging. But the test mule does not reveal much with its heavy camouflage. Greener versions of the XUV 7XO could get a fresh face and exclusive colour options. However, major changes in the overall design are unlikely. These spy shots are thanks to automotive enthusiast Ananda S who spotted it on the highway near Tindivanam.

Performance
It was earlier reported that XUV 7XO could be the first to get a strong hybrid option. The Scorpio N is also expected to get this strong hybrid powertrain. Mahindra’s strong hybrid setup will be based on the existing 2.0-litre turbo petrol engine. XUV 7XO strong hybrid is expected to offer slightly higher total system power.
In its current form, the 2.0-litre turbo petrol engine generates 203 PS and 380 Nm of torque. It is paired with either a 6MT or 6AT transmission. This engine is also likely to be used for the flex fuel version of XUV 7XO. Mahindra had earlier showcased its flex fuel tech with the XUV 3XO at the 2025 Bharat Mobility Show. XUV 3XO flex fuel was equipped with the 1.2-litre 3-cylinder, turbocharged engine. It had the necessary tweaks to support ethanol blends of E20 to E85.

Hybrid sales FY2026
Hybrid segment in India is currently dominated by Toyota and Maruti. In FY2026, sales of hybrid cars crossed 1.23 lakh units. Bestselling hybrid car in FY2026 was Innova Hycross, contributing 49.7% to the total hybrid sales. Toyota Hyryder was second, contributing 28.4% to overall hybrid sales. Another significant contributor was Maruti Grand Vitara, with a 9.3% share. Other hybrid cars like Invicto, Victoris and Honda City e:HEV had relatively fewer numbers in FY2026.
