MC EXCLUSIVE Maruti eyeing small hybrid car launch in India by Q2 FY27, Fronx likely to get the new powertrain

Maruti is planning to introduce strong hybrid powertrain in sub-4 metre cars.

The country's largest carmaker, Maruti Suzuki India, is looking to launch its maiden small hybrid car, which is likely to be the Fronx compact SUV, with an in-house developed strong hybrid powertrain by the second quarter of the next fiscal, two separate sources told Moneycontrol.

For reference, a strong hybrid is a type of powertrain that combines an internal combustion engine (ICE) with an electric motor and a battery system, capable of driving the vehicle on electric power alone for short distances.

Maruti currently offers three models -- Victoris mid-size SUV, Grand Vitara mid-size SUV and Invicto MPV -- with a strong hybrid powertrain. However, the strong hybrid technology in these models is sourced from Toyota.

One of the sources said that the Fronx hybrid is in its late-stage real-world testing phase, with the launch of the car in India expected to take place in Q2 FY27. "The Fronx hybrid will source power from the new Z-Series 1.2-litre 3-cylinder petrol engine," the source said.

Maruti first introduced the new Z-Series 1.2-litre 3-cylinder petrol engine in the fourth-generation Swift hatchback. The same engine was later employed by the fourth-generation Dzire compact sedan.

Although the carmaker finalised the Fronx compact SUV as its maiden sub-4 metre car to get the strong hybrid powertrain, it also considered hatchbacks like the Swift and the Baleno.

"The rising popularity of SUVs and the fact that the Fronx has done quite well in terms of volumes since its launch tipped the scales in its favour," the second source said, adding that other small models will also get the strong hybrid powertrain in future.

Maruti spokespersons did not immediately respond to an email seeking details about the Fronx hybrid launch in India.

The carmaker currently offers petrol and CNG powertrains in its sub-4 metre cars. However, the introduction of strong hybrid technology in small cars could act as a shot in the arm, helping it improve the volumes.

Although the strong hybrid technology is limited to select models of Maruti (Victoris mid-size SUV, Grand Vitara mid-size SUV and Invicto MPV), Toyota (Urban Cruiser Hyryder mid-size SUV, Innova Hycross MPV), and Honda (City e:HEV mid-size sedan) in the mass-market space, the volumes have witnessed a steady growth.

The strong hybrid volumes climbed from 41,477 units in FY23 to 90,460 units in FY24 to 1,04,800 units in FY25, according to industry data. In terms of the passenger vehicle (PV) market share, the growth has been from 1.1% in FY23 to 2.1% in FY24 to 2.4% in FY25.

While the demand for strong hybrid models is increasing, the Fronx hybrid will also benefit from lower taxation following the Goods and Services Tax (GST) rationalisation.

In the GST 2.0 regime, the Fronx hybrid will be in the 18% tax bracket. However, it would have attracted a GST of 28% with nil compensation cess earlier. With relatively lower taxation, the Fronx hybrid is expected to be launched at a competitive price point.

The Fronx hybrid's launch also comes as carmakers prepare for tighter Corporate Average Fuel Efficiency (CAFE) Phase-III norms, which will take effect on April 1, 2027. Strong hybrids help improve fleet fuel efficiency and reduce CO₂ emissions, offering compliance benefits.