India ramps up ethanol blending and flex‑fuel vehicle rollout

India is accelerating its ethanol blending programme, planning to raise the ethanol share in petrol to 30% by 2025‑2026. The blend has risen from about 1.5% in 2013‑14 to 20% in 2020, with the government citing energy self‑reliance, emissions reductions and higher farmer incomes. Critics point out that sugarcane‑based ethanol consumes large volumes of water – roughly 791 gallons per gallon of fuel – and may increase greenhouse‑gas emissions. The Texas Public Policy Institute warned that “producing one gallon of ethanol may well take more energy than the end product contains.”

To support higher blends, India is introducing flex‑fuel vehicles (FFVs) capable of running on up to 100% ethanol. The Maruti Suzuki WagonR Bioflex is the first Indian FFV, with Tata Motors, Hyundai and a Toyota Innova hybrid prototype also slated for launch. FFVs carry a modest price premium (about ₹85,000 for the WagonR Bioflex) and E85 fuel is sold at roughly ₹82 per litre versus ₹102 for E20 petrol, though industry experts say E85 must be at least 30% cheaper to attract buyers. Toyota’s Vikram Gulati said, “With the introduction of flex‑fuel vehicles, the government may not have to increase the base ethanol blending rate.”