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Carsales Staff14 Jul 2025
NEWS

Mahindra reveals NVES impacts

Feisty engine denied for new 3XO, BEVs preferred to hybrids moving forward into the future

Indian auto giant Mahindra has revealed how Australia’s new NVES CO2 emissions reduction scheme is already shaping its current and future local model line-up.

The New Vehicle Efficiency Standard (NVES) started officially monitoring vehicle emissions on July 1.

In the short term, Mahindra says NVES has already ruled out the introduction of a feisty direct injection and intercooled version of the turbocharged triple-cylinder engine in its new XUV 3XO mini-SUV.

In the longer term, in part driven by NVES, it is currently planning to bypass hybrids and introduce a new generation of battery electric SUVs starting from as soon as 2027.

The 3XO has launched with a port injection 1.2-litre mStallion TCMPFi engine that produces 82kW/200Nm. But the interesting alternative that NVES ruled out is the mStallion TGDi engine that makes 96kW/250Nm.

Mahindra XUV 3XO
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“In Australia we have a new rule that started on July 1 called NVES … that might answer your question,” said Mahindra Australia marketing chief James Halliwell at the 3XO Australian media launch when asked why the higher-spec engine wasn’t considered for local launch.

In Indian testing the direct injection engine combined with a six-speed automatic transmission accelerated from 0-100km/h in slightly more than 11 seconds. Even combined with a manual gearbox the Aussie-spec engine took nearly 13 seconds to complete the same dash.

Intriguingly, considering the NVES issues cited for the direct injection engine, Indian official fuel consumption claims are almost identical for both triples and fall between 5-6L/100km.

In Australia the 3XO’s engine is rated at 6.5L/100km and 136.55g/km of CO2. The NVES passenger car (including light duty SUVs) CO2 target is 141g/km.

Longer term, Mahindra has just rolled out its first two ground-up BEVs in India – the BE 6e and XEV 9e – and they are understood to be top of the list for Australia as well.

Mahindra BE 6e and XEV 9e
Mahindra XEV 9e
Mahindra XEV 9e

The EVs will be sold alongside a steady stream of new petrol/diesel utes and SUVs that will expand the Australian line-up steadily from the petrol 3XO and XUV 700 SUVs and diesel Scorpio 4x4 wagon.

Those new models will include a new-generation Pik Up dual cab ute and an off-road SUV.

“We have a diesel strategy, we have a gasoline 700 and now we have a light SUV,” said Sachin Arolkar, head of international operations at Mahindra & Mahindra Ltd.

“This gives us a good presence in the right segments. No overlaps per se, but gives us a good blend rather than a single product.

“That’s one piece, the second piece is the electric vehicle piece.

Mahindra Thar.e concept
Mahindra Global Pik-Up

“Electric vehicles are the way we are going right now … those are our priority for Australia.

“Hybrids or any other technologies are being evaluated and at an appropriate stage could get into the pipeline.

“But right now we are focussing on ICE and adding the electric portfolio. That’s it.”

Arolkar said Australia’s new NVES CO2 reduction scheme was intrinsic to the company’s commitment to EVs.

EVs accrue credits under the scheme that help pay down fines incurred by ICE vehicles. They can also be sold on to other auto companies for the same purpose.

Mahindra INGLO EV architecture

Arolkar said Mahindra had several different ways it could start its Aussie EV roll-out.

“There are two or three things working at cross-purposes. One is to get an EV at the earliest, given the NVES and to expand our portfolio.

“The second is to say we should launch with some meat, so with two models. And that is contradicting the first one somewhat.

“There are multiple options being worked on.”

Under Mahindra’s EV strategy BE models are sportier, XEV Models more traditional, but both share the same Mahindra-developed INGLO BEV dedicated BEV architecture and have different aspects of their powertrains systems sourced from Volkswagen, French Supplier Valeo and BYD.

mahindra ev future 1
mahindra ev future 2

The BE 6e and XEV 9e are the first two of five 2022 INGLO BEV concepts to make it into production. Two more coming soon are reportedly named the XUV.e8 and XEV 7e.

A sixth model dubbed the B Rall E, which is an off-road version of the BE 6, is also reported to be under development.

However, an electric version of the 3XO won’t be a candidate for Australia because Mahindra only wants to sell ground-up BEVs here.

“The Born Electric is the course we want to take for Australia,” Arolkar said. “It gives us far more options in terms of the portfolio reach.”

More details of Mahindra’s BEV and ICE plans as well as more clarity on hybridisation should come on August 15 when it conducts a major new product reveal dubbed Freedom Nu.

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