Nonlinear (non-Boussinesq) variations in fluid's density, viscosity, and thermal conductivity caused by a large temperature gradient in a flow domain lead to a wide variety of instability phenomena in mixed convection channel flow of a simple gas such as air. It is known that in strongly nonisothermal flows, the instabilities and the resulting flow patterns are caused by competing buoyancy and shear effects [see S. A. Suslov and S. Paolucci, J. Fluid Mech. 302, 91 (1995)]. However, as is the case in the Boussinesq limit of small temperature gradients, in moderately non-Boussinesq regimes, only a shear instability mechanism is active. Yet in contrast to Boussinesq flows, multiple instability modes are still detected. By reducing the system of full governing Navier-Stokes equations to a dynamical system of coupled Landau-type disturbance amplitude equations we compute a comprehensive parametric map of various shear-driven instabilities observed in a representative moderately non-Boussinesq regime. Subsequently, we analyze nonlinear interaction of unstable modes and reveal physical reasons for their appearance.