Mahindra Plans XUV 3XO CNG – Nexon Rival Gets New Fuel Option

Mahindra & Mahindra is planning to introduce a factory-fitted CNG kit for the Mahindra XUV 3XO, in response to the upcoming CAFE 3 norms. This move will add another powertrain option and help the SUV better compete with segment leaders like the Tata Nexon.

Mahindra XUV 3XO to Get CNG Kit

The upcoming CAFE 3 norms are expected to bring stricter emission regulations, particularly impacting diesel-powered vehicles. One of the key reasons buyers prefer diesel engines is their superior fuel efficiency, especially in larger SUVs that heavily rely on diesel powertrains.

Mahindra is now looking to introduce a CNG option for the XUV 3XO, expanding its lineup beyond petrol, diesel, and electric. Offering a CNG variant will enhance its competitiveness, especially since its key rival, the Tata Nexon, already comes with a CNG option.

We expect the CNG kit to be offered with the 1.2L mStallion TCMPFi petrol engine, which produces 82 kW of power and 200 Nm of torque, paired with either a 6-speed manual or a 6-speed automatic gearbox. As is typical with CNG setups, the power output is likely to be slightly reduced.

However, packaging a CNG tank in the XUV 3XO could be challenging. The SUV offers a claimed boot space of 364 litres, with usable space of around 295 litres, which could be significantly impacted by a CNG setup.

Mahindra could address this by introducing dual-cylinder technology, which helps retain some usable boot space. Another possibility is the use of an underbody-mounted CNG tank, a solution already seen in several modern CNG vehicles.

CNG remains one of the most cost-effective alternatives to petrol, offering lower running costs and improved fuel efficiency, making it an attractive option for budget-conscious buyers. India's CNG segment is largely dominated by Maruti Suzuki, Hyundai Motor Company, and Tata Motors.

In the SUV space, Tata currently offers CNG options in models like the Nexon and Punch, which are among the best-selling vehicles in the country. Mahindra introducing a CNG variant for its most affordable SUV could be a strategic move to attract mileage-focused buyers and strengthen its position in the segment.