Inside the Flex fuel strategies of Maruti, Tata Motors, Mahindra and Hyundai

Copyright © HT Digital Streams Limit all rights reserved. Operate Shobha Mathur 9 min Read 29 Apr 2025, 07:31 PM IST Alternative fuel is carbon-negative and is expected to benefit farmers. (Tarun Kumar Sahu/Mint) Summary with the government that promotes alternative fuel, apart from electric vehicles, as part of India’s efforts to reduce oil imports and exemptions, the top car manufacturers are working to make their vehicles cleaner and greener. Here’s a look at what they do. New Delhi: Last month, Nitin Gadkari, Minister of Road Transport and Highways of the Union, drove to an event in a 100% bioethanol Flex-Fuel Toyota Innova. Gadkari, who was the driving force behind the changes in India’s motor policy, was particularly talking about the use of locally produced bioethanol to stimulate Flex fuel vehicles in India. He got behind the wheel of the Toyota Innova to drive the point home, and urged the Indian automotive industry to adopt ethanol as an eco-friendly and cost-effective option to gasoline. India is third in the import of crude oil, to China and the US. It imported 87.7% of its crude oil (233.1 mmt) requirements in 2023-24, according to the data from the Ministry of Petroleum and Natural Gas. To reduce this dependence on oil imports, the government has promoted electrification in the transport sector, as well as ethanol mixing with gasoline, and the production of compressed biogas. It’s not just about reducing imports. At the COP26 UN Climate Change Conference 2021 in Glasgow, India indicated that it intended to move away from fossil fuels as early as possible. Since then, there has been a policy assignment to decarbonize 50% of the country’s energy by 2030 and reduce the dependence on fossil fuels. The Indian government is reducing the CO2 output by 1 billion tonnes that year in an effort to achieve the larger road map of net zero emissions by 2070. Flex fuel is a large part of the government’s plans to reduce oil imports and turn green. As the term suggests, a Flex fuel vehicle is one that is flexible with fuel, in the sense that it can work on pure gasoline or with ethanol mixes of up to 85% or even 100%. As ethanol is obtained from agricultural crops such as sugarcane, wheat and wheat, the fuel mixture is cleaner as they have lower emissions. In theory, it can also be cheaper, especially with a higher ethanol mixture, if subsidized by the government. Look at the full image ethanol is obtained from agricultural crops such as sugarcane, wheat and wheat. (Bloomberg) Prathamesh Chaudhary, principal, car at Arthur D. Little India, estimates that 1 liter E85 (85% ethanol with gasoline) would cost £ 60-70 at the current rates, compared to about £ 95 for a liter of gasoline (in Delhi). Flex fuel prices will also differ based on the region, such as with petrol prices. The Flex fuel price will also depend on the availability of ethanol. The Ministry of Petroleum and Natural Gas is currently preparing a dozen plants for ethanol production, but the production on a large scale has yet to start. Petrol prices will also affect the 15% petrol mixture in Flex fuel. The good news is that Flex Fuel received a boost with a by -law to market gasoline, mixing with 20% ethanol coming into effect on April 1. Carmakers in India bring their strategies in accordance with the government’s pressure to green and less polluting alternative fuel. Indeed, vehicle manufacturers fought with each other to display Flex fuel and hydrogen fuel cell electric vehicles (FCEV) in the Bharat Mobility Global Expo in January. Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai, Toyota and other car manufacturers have worked on alternative fuel technologies such as compressed earth gas (CNG), Flex fuel, hydrogen fuel cells electric vehicles, or pure electric vehicles. Even two-wheel makers experiment with Flex-Fuel concept models. Maruti and Toyota bet on Flex fuel vehicles, which will also help them to meet cafe or corporate average fuel efficiency norms (aimed at reducing fuel consumption and CO2 output), says Chaudhary. Tata Motors and Mahindra took the electric vehicle path while Hyundai held its options open, he added. Here is a more detailed look at what the best car manufacturers are doing on the alternative fuel front. Maruti Suzuki According to Suzuki’s 2025-2030 mid-term plan, the car manufacturer will focus on technologies that reduce energy consumption at each stage, based on the principles of Sho-Sho-Tan-Tan-Bi (smaller, less, lighter, shorter, beautiful) to reduce the environmental risk. The wagon R FFV, Maruti’s first Flex fuel, mass segment prototype car, can run on an ethanol mixture from 20% to 85%. Ethanol fuels are biogenic as they are largely manufactured using plant -based sources. Therefore, FFV technology can help reduce carbon emissions by about 79% compared to vehicles running on gasoline fuel. Look at the complete image prototype of the wagon r ffv. “We need an drive solutions that best fit the requirements of customers of different product segments and also help improve the country’s energy security,” Maruti Suzuki spokeswoman told Mint. The power system enables a vehicle to move by generating power and transferring to the wheels. As a result, the company has adopted different power steering technologies, over electric vehicles of batteries, hybrid electric vehicles and vehicles powered by alternative fuel such as ethanol, compressed biogas and CNG. By March 2023, the car manufacturer had already suggested its entire product range E20 fuel by carrying out changes in the Flex-Fuel engines, among other components. The company believes that the market is positioned to utilize green fuel such as ethanol and biogas, taking into account the availability of resources in the country. India has a good amount of agricultural biomass needed to produce this green fuel. “These alternative fuels are completely renewable, have no import content, are carbon-negative and will also benefit our farmers,” the Maruti spokesman added. Hyundai Hyundai unveiled its prototype, Creta Flex-Fuel, on the Global Expo. The vehicle is capable of running from E0-E100 (100% gasoline to 100% ethanol fuel). Check out the full image concept model of the Creta Flex-Fuel. Tarun Garg, a whole director and chief operating officer of Hyundai Motor India, maintains that Hyundai was one of the pioneers in Flex-Fuel technology and says his Flex fuel cars have been working in Brazil for years. The company’s HB20 model, a compact car, was launched in Brazil in 2012. About 90% of the new cars, SUVs, bakkies and commercial vehicles sold in Brazil, Flex-Fuel is capable. The passenger car segment was responsible for the largest 40% share in 2025. The Brazilian Flex-Fuel market is expected to grow at a compound annual growth rate of 7.4% between 2025-2032, according to Coherent Market Insights, a global market intelligence and consulting firm. The most important driver for the Brazilian market is the significant price difference between gasoline and ethanol, of which the last 10% -30% is cheaper, depending on the global oil price fluctuations. Ethanol was produced from sugarcane and Brazil was the world’s largest sugarcane producer in CY2024 (India at second place). Almost all major car manufacturers have a presence in the Brazilian Flex fuel market, with the most popular cars the Toyota Corolla, Renault Kwid, Chevrolet Onix Plus and Hyundai HB20. Garg says Hyundai will bring its first Flex-Fuel car to India in 2026 as soon as there is clarity on the government’s Flexfuels policy. The Society of Indian Automobile Manufacturers of India (Siam) are in talks with the government about the specific policies needed to promote the use of Flex fuel vehicles. This would include all the price of flex fuel, to the availability of fuel, incentives and cafe norms. Hyundai will bring its first Flex-Fuel car to India in 2026 as soon as there is clarity on the country’s policy on flexfuels. The Society of Indian Automobile Manufacturers of India are in talks with the government about the specific policy reinforcers. In January, Hyundai unveiled his Fuel Cell Electric SUV Nexo on the Global Expo and later on the Seoul Mobility Show in Korea. The South Korean car manufacturer has partnered with Indian Oil Corporation to test the technology for two years and assess its economic viability for mass consumption in India. Garg feels that fuel cell technology as a mainstream fuel in cars is still in its early days in India. However, the car manufacturer invested £ 180 to establish a hydrogen innovation center at IIT Madras to help reduce the cost of producing it. At current prices, costs are linked to $ 5-6 per kg. The car manufacturer wants to lower the hydrogen price to $ 2 per kg. Hyundai works with the Tamil Nadu government and IIT Madras to promote the technology, not only in cars, but also to promote it as an alternative option for energy -generation. Tata Motors Tata Motors showed the prototype of Flex-Fuel Punch on the recently closed global expo, with E20 to E85 capability. “Right now, all our cars are 20% ethanol mixture certified,” said Mohan Savarkar, vice president and chief product officer, Tata Motors -Passenger vehicles. Take a look at the full image prototype of the Flex-Fuel Punch. All oil companies nowadays mix gasoline with ethanol and this percentage improves as the availability of ethanol increases. An average 14% -15% ethanol mixed gasoline is available in India. “We are working on a higher ethanol mix of 85%,” Savarkar adds. The actual implementation will depend on when the government wants to progress on this journey. The government has roughly indicated that it intends to impose higher ethanol mixing in gasoline in 2030, so that car manufacturers prepare for this implementation. Savarkar, which explains the technical aspects of the Flex-Fuel engine, has expanded that some engineering changes are needed to ensure that ethanol mixed gasoline can burn effectively in the engine. Ethanol must reach a certain temperature to ensure proper combustion. Many power parts will change to the fuel tank. Similarly, pipes and valves ethanol voucher must be made. Mahindra & Mahindra, which is not left behind in the Flex-Fuel Race, the Indian SUV manufacturer has also developed a prototype of Flex-Fuel of its sub-compact XUV 3XO SUV. The petrol/diesel CUV, launched in April last year, sold about 98,000 units in FY25. An electrical option of the XUV 3xo is also on the cards. The concept model can be used on 85% ethanol mixed gasoline. The SUV manufacturer declined to comment on its future plans for alternative fuel. Opportunities and challenges Flex-Fuel vehicles provide India a strategic opportunity to reduce its $ 120 billion oil import account, increase rural revenue (as ethanol is made from agricultural crops), and reduced emissions by up to 50% by E20 and E85 ethanol mixes, says Ravi Bhatia, president of Jato Dynamics India. Despite the momentum of the industry, there are four more challenges: limited E85 infrastructure, high vehicle costs (£ 25,000 premium plus 28% GST), nutritional restrictions and policy favorite EVs. The solution requires tax parity with EVs (5% GST), infrastructure investment and consumer education, Bhatia adds. Brazil’s successful 90% Flex-Fuel vehicle market share offers a proven blueprint as India promotes its 2025 target E20 target. Despite the momentum of the industry, there are four more challenges: limited E85 infrastructure, high vehicle costs, nutritional restrictions and policy favorite against EVs. India has sufficient surplus feed to achieve its E20 targets; 2G-Etanol technology has a great potential to enable higher mixing outside E20 and to ensure long-term sustainability for flex fuel, maintain Arthur D ‘Little’s Chaudhary . Based on the current public sector plans in the public sector, India will reach 2g ethanol production capacity of 65 crore liter by 2030, which will be sufficient for E20. The government actively encourages the construction of 2G bio-refineries by PM Ji-van Yojana and the national policy on biofuels. Savarkar of Tata passenger vehicles believes that the cost may be a limitation for the consumer when purchasing a Flex fuel vehicle. The fuel efficiency of the car also drops by 30% by using 85% ethanol mixed gasoline, making it an expensive statement. The regulation of prices of ethanol mixed gasoline to increase the use can be a solution here. The government is perhaps willing to subsidize Flex fuel as it reduces crude oil imports, Hmil’s GAR is expanding. As ethanol mixing rises, fuel price drops worldwide. Eventually, Flex fuels are likely to exist with other sources, such as CNG and electricity. The government is leveling the playing field, and market forces will subsequently form the contours of India’s car market. Catch all the industry news, bank news and updates on live currency. Download the Mint News app to get daily market updates. More Topics #Long Story #Long Read Mint Specials