Mahindra XUV 3XO CNG Launching Soon to Take on Tata Nexon CNG

In a significant strategic shift, Mahindra is preparing to launch its first factory-fitted CNG powered SUV in the country. The XUV 3XO CNG is reportedly under development, which is expected to debut by late 2026. The compact SUV is aimed squarely at the Tata Nexon iCNG, which is currently India’s only turbo-petrol CNG SUV. 

XUV 3XO CNG: Turbocharged Unit

Mahindra is likely to utilise its 1.2L mStallion Turbo MPFi engine for the 3XO CNG. In petrol mode, this engine churns out 112PS and 200Nm of torque. In the CNG mode, the output will witness a marginal dip. We expect the XUV 3XO CNG will remain the most powerful CNG SUV in its class, surpassing the Nexon iCNG’s 100PS. 

Mahindra opted for the Multipoint Fuel Injection (MPFi) unit over the more powerful Direct Injection, as it is simpler and more cost-effective to convert to CNG. This ensures the car remains competitively priced. 

Boot Space - Twin-Cylinder or Underbody CNG Tank?

The current Mahindra XUV 3XO has a boot space of 295-litres, which is already the smallest in the segment. Adding a massive single CNG tank would eliminate all luggage space. Mahindra could use the twin-cylinder setup to keep the luggage floor usable. This is the same tech used by Tata Motors and Hyundai. Similar to the Maruti Suzuki, Mahindra could also opt for the underbody CNG tank.

CAFE 3 Norms Impact

The upcoming CAFE 3 (Corporate Average Fuel Economy) norms are becoming stricter. It is reported that the diesels will need significant changes to meet the new norms, and this will significantly increase the production cost. By introducing high-volume CNG models, Mahindra can significantly lower its fleet-wide CO2 emissions, allowing it to continue sell larger diesel SUVs like Scorpio-N and XUV 7XO without heavy penalties. Moreover, sales of small diesel SUVs are on decline and CNG could be the replacement. 

Interestingly, the CNG vehicles now accounting for nearly 22 percent of all car sales in India. Mahindra can no longer afford to stay on the sidelines. 

Source - AutoCarIndia