Govt, Automakers Discuss Raising Ethanol Blend Beyond 20%

The Indian government has begun talks with automobile original equipment manufacturers (OEMs) to increase ethanol blending in petrol beyond twenty per cent, with the current E20 target set for October 2025.

Major OEMs such as Tata Motors, Mahindra and Mahindra, and Maruti Suzuki have raised concerns about high investment requirements and limited consumer interest. A draft report is being prepared by officials from the petroleum, transport, and agriculture ministries for cabinet review.

Industry executives said upgrading vehicles from E20 to higher blends like E40 or E45 could raise costs by two point five to four per cent due to modifications in engine and exhaust systems. Existing vehicles may operate on higher blends, but mileage could drop and maintenance rise.

OEMs are already investing around Rs 950 billion to boost capacity, and further mandates may overburden the sector amid global uncertainties and weak urban demand. Passenger vehicle sales grew just two per cent in FY25.

Availability of flex fuels across India remains a hurdle for commercial rollout. Automakers urged the government to balance ambition with practical timelines and support infrastructure expansion before enforcing new targets.

Source:Moneycontrol

Related Stories

DPIIT Partners With YourStory To Boost Inclusive Startups

In a significant step to boost grassroots entrepreneurship, the Department for Promotion of Industry and Internal Trade (DPIIT) has signed a Memo...

Read More

Dassault To Build Falcon Jets In India With Reliance

Reliance Infrastructure Ltd’s subsidiary, Reliance Aerostructure, has signed an agreement with France’s Dassault Aviation to manufacture Falc...

Read More

Karnataka Launches Global Innovation Hub at Airport City

The Government of Karnataka, in collaboration with Bengaluru Airport City Limited (BACL) and ANSR, has launched a global innovation hub named Dis...

Read More

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back