Mahindra & Mahindra launched the XUV 3XO ZNG, its first mainstream CNG passenger vehicle, at a starting price of Rs 9.99 lakh (ex-showroom). Test drives commenced today, with bookings and deliveries opening on October 20.
The launch brings the SUV specialist into a segment that has become one of Indian motoring’s biggest growth stories. CNG’s share of passenger vehicle sales has more than tripled in five years — from 6.3 per cent in FY2020 to 19.5 per cent in FY2025, according to SIAM data. In FY2025, CNG cars outsold diesel cars for the first time — 787,724 units to 736,508 — on Vahan registrations. Separately, FADA data shows CNG’s share of passenger vehicle retail sales rising from 19.60 per cent in FY2025 to 21.98 per cent in FY2026, second only to petrol.
Maruti Suzuki has been the segment’s biggest beneficiary. The country’s largest carmaker sold about 6.2 lakh CNG vehicles in FY2025 — up 28 per cent year on year — meaning one in every three Marutis sold ran on gas, compared with 12 per cent of its sales in FY2021.
Volumes rose further to 7.46 lakh units in FY2026, and Maruti holds roughly 70 per cent of the CNG passenger vehicle market.
CNG has also become a major growth driver for Tata Motors. Its CNG volumes jumped 50 per cent to 139,218 units in FY2025, accounting for a quarter of its sales — up from 16 per cent in FY2024 and 8 per cent in FY2023.
In the 12 months to September 2026, its first year as a demerged passenger vehicle company, Tata sold over 2.03 lakh CNG vehicles, or 27 per cent of its volumes. Mahindra claims to have engineered the new 3XO ZNG for performance and driving dynamics, an aspect hitherto ignored on CNG vehicles. The company claims the XUV 3XO ZNG’s 1.2-litre turbocharged engine delivers identical 82 kW power and 200 Nm torque — best-in-class among CNG passenger vehicles in India in both CNG and petrol modes, with certified efficiency of 24.7 km/kg.
Twin cylinders packaged under the boot floor preserve a flat loading floor and 270 litres of luggage space, addressing the boot-space trade-off that comes with conventional CNG installations. Six airbags and ESC are standard across variants; prices top out at Rs 12.27 lakh.