Mahindra plans to launch its first CNG SUV on April 25, 2026, as part of its strategic expansion in the eco-friendly vehicle segment.

The company, previously offering CNG in commercial vehicles, is now set to introduce CNG in a passenger car.

Mahindra has decided to enhance CNG production due to rising demand and to benefit from relaxed emission norms, according to Autocar India.

The current market share of CNG in India stands at 21.98 percent, making it the second most popular fuel type after petrol, highlighting its importance for companies.

Mahindra plans to launch the 3XO in CNG, directly competing with Tata Nexon CNG, according to reports.

Mahindra has previously offered CNG in passenger vehicles such as Logan and KUV 100.

The 3XO currently offers two engine options; the company may select the 1.2-liter MPFI for CNG.

Selecting an engine: MPFI engines are easier to manufacture and suitable for CNG use, while direct injection engines pose more challenges.

The new car is expected to launch by year's end or early next year, with over 100,000 units of the 3XO sold in FY 2026.