Carmakers Step Up Flex Fuel Efforts with CAFE III On The Horizon

India’s leading car manufacturers like Maruti Suzuki, Tata Motors, Mahindra & Mahindra, and Toyota are ramping up their focus on flex fuel vehicles. 

This shift comes in response to recent comments from the Minister of Road Transport and Highways, Nitin Gadkari, who indicated that the upcoming Corporate Average Fuel Efficiency (CAFE) III regulations would treat flex fuel and electric vehicles on par in terms of regulatory benefits. 

The new framework, set to take effect in April 2027, is expected to boost the adoption of vehicles that can run on petrol-ethanol blends.

Flex Fuel Gains Momentum in India

India is pushing ahead with its ethanol blending programme, aiming to increase the proportion of ethanol in petrol to E20 (20 per cent ethanol) nationwide by 2025 and exploring E27 (27 per cent ethanol) for the future.

The government’s push for flex fuel adoption follows a meeting last year between Gadkari and the Society of Indian Automobile Manufacturers (SIAM), where he encouraged automakers to make these vehicles more appealing to Indian consumers. He pointed to Brazil’s successful use of flex fuels and biofuels as a model for India.

However, many vehicle owners worry about reduced fuel efficiency, potential engine compatibility issues, and higher maintenance costs, especially for older vehicles not designed for higher ethanol blends. 

This has led to growing discontent, as consumers fear increased expenses and possible engine damage.

Flex fuel vehicles are designed to operate on petrol mixed with ethanol in concentrations ranging from 20 per cent to 100 per cent. Ethanol, produced from the fermentation of plant-based sugars and starches, offers a renewable alternative to traditional fuels. 

At the Bharat Mobility Show 2025, several automakers showcased their latest flex fuel models, including the Maruti Suzuki Brezza, Toyota Hycross, Hyundai Creta, Tata Punch, and Mahindra XUV 3XO. These vehicles are capable of running on high ethanol blends, up to 85-100 per cent.

Addressing Efficiency Challenges

While ethanol is more affordable than petrol, it typically results in about 30 per cent lower fuel efficiency. 

To address this, Toyota is planning to introduce strong hybrid technology in its flex fuel vehicles. The company believes that hybrid systems, which combine petrol engines with electric motors, can offset the efficiency loss and reduce carbon emissions. 

Toyota expects the rollout of these advanced flex fuel vehicles to align with evolving government policies.

Maruti Suzuki has also outlined in its 2030 product strategy that a quarter of its vehicles will be compatible with E20 ethanol-blended fuel, while another 25 per cent will be hybrid electric vehicles. 

Also read: Is E20 Fuel Safe for Older Cars? Complete Guide for Indian Car Owners