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The Indian government has released a draft policy enabling the use of E85 ethanol fuel, redefining flex fuel vehicles (FFVs) as those capable of operating on blends ranging from E20 to E85 and beyond, including E100. The revision corrects an earlier notification and paves the way for FFVs to enter the Indian market, with consumers able to choose fuel blends at dispensers based on availability and preference.
Vikram Gulati, Country Head and Executive Vice President of Toyota Kirloskar Motor, said existing vehicles are compatible with E20, while E85 and E100 will be used in future FFVs. He cited Toyota's two-year pilot using an E100-powered FFV Innova and noted that two- and four-wheeler OEMs are technically ready but await policy enablers such as updated CAF norms, fuel dispensing infrastructure, ethanol pricing parity, and buyer incentives.
Gulati referenced Brazil's ethanol program, where E27 is standard and ethanol accounts for 55% of transport fuel, urging a similar multi-technology approach in India. He highlighted that every $10 increase in crude oil prices adds $1618 billion to India's import bill and reduces GDP growth by 0.5%. Surplus rice and sugarcane stocks, along with second-generation ethanol, can address food and water security concerns, he added.
With India's passenger vehicle sales reaching 4.6 million units in the past year and growing at 14% annually, Gulati emphasized the need to integrate battery electric, hybrid, plug-in hybrid, compressed biogas, and ethanol technologies in the clean mobility transition. The government's draft policy is expected to undergo stakeholder consultations before finalization.
The Ministry of Petroleum and Natural Gas will review feedback on the draft, with officials indicating a final policy could be issued within the next few months to align with national energy security and emissions reduction goals.