Mahindra & Mahindra Ltd (M&M) has taken a bold step toward shaping the future of mobility in India and beyond with the unveiling of its new NU_IQ platform. This common technology architecture will underpin petrol, diesel, and electric vehicle (EV) models, giving the company unprecedented flexibility to adapt to shifting consumer demand and evolving regulatory frameworks.
NU_IQ: A Foundation for Versatility
The NU_IQ platform allows M&M to build multiple vehicle types on the same architecture—whether internal combustion engine (ICE) or fully electric. This move not only reduces costs but also future-proofs the company against regulatory and market uncertainties.
Four SUV design prototypes were showcased at the launch event, with the first wave of vehicles expected to hit the roads in 2027. While competitors like Tata Motors, through Jaguar Land Rover’s Modular Longitudinal Architecture (MLA), already offer multi-powertrain flexibility, Mahindra’s entry marks a crucial step in India’s automotive race.
The Hybrid Question
Interestingly, Mahindra has chosen not to integrate hybrids into NU_IQ—at least for now. Rajesh Jejurikar, executive director and CEO (Auto and Farm sector), clarified that hybrids will only be considered if market demand materializes. This stands in contrast to Hyundai, which has committed to hybrid launches as part of its strategy to regain the number two spot in India’s auto market.
Market Battle: Domestic Giants Rise
Mahindra’s announcement comes at a time when Indian automakers are increasingly challenging global giants. In FY26 so far, Mahindra has edged Hyundai in wholesale volumes, securing the second spot behind Maruti Suzuki. Its share price has also risen 6% in 2025, outperforming the Nifty50 benchmark.
Anish Shah, M&M’s group CEO, highlighted the symbolic importance of this shift: “There was a time not long ago, global automakers dominated the Indian roads. Today, the tide has turned. Indian companies like Mahindra are at the forefront of technology, scale and ambitions.”
Regulatory Pressures and CAFE 3 Norms
A key driver of NU_IQ’s development is compliance with CAFE 3 (Corporate Average Fuel Efficiency) norms, set to take effect in 2027. These will push automakers to meet stricter CO₂ emission targets across their fleets.
Currently, diesel accounts for 77% of Mahindra’s domestic sales—posing a compliance challenge. By enabling ICE and EV production from the same base, NU_IQ offers Mahindra agility to rebalance production as needed. Industry experts see this as a strategic hedge against both market and regulatory volatility.
Global Expansion and Manufacturing Scale
The NU_IQ platform will be supported by a dedicated capacity of 240,000 units annually at Mahindra’s Chakan plant starting in 2027. M&M also intends to leverage the platform for global ambitions—first targeting established markets like South Africa and Australia before expanding further. Additionally, the company is exploring export opportunities for its India-made EVs in the UK and other markets.
The Road Ahead
As the Indian auto sector braces for intensifying competition—both domestic and global—Mahindra’s NU_IQ platform may prove to be a turning point. Its multi-powertrain flexibility not only equips the company for the impending CAFE 3 norms but also positions it to respond swiftly to consumer trends, whether diesel, petrol, or EV.
With Tata, Hyundai, and Maruti Suzuki already ramping up their strategies, the battle for India’s number two spot promises to be one of the most dynamic shifts in the global auto industry.
Would you like me to also create a stylized illustration (for your blog) showing Mahindra’s NU_IQ platform as the foundation supporting petrol, diesel, and EV vehicles branching out from it?
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This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.