The ministry has also asked original equipment manufacturers (OEMs) to make customers more aware of FFVs, as sales have not picked up to the expected level, the people said. A fuel blend that has at least 85 per cent ethanol — produced locally — is called flex fuel.
A few weeks after the war began in West Asia in February, affecting global crude oil and natural gas supply across the world, the MoPNG started pushing automakers and oil marketing companies (OMCs) to launch FFVs and increase flex fuel availability at retail pumps, respectively.
At the meeting earlier this month, automakers and ethanol producers sought policy support from the Centre and the states to encourage the use of FFVs.
Two-wheeler companies have asked the MoPNG to approach states to remove restrictions on FFVs, particularly in Delhi, where the new EV policy mandates that only electric two-wheelers can be registered from April 2028.
A foreign carmaker also raised the issue of the Delhi government’s ban on FFVs from April 2028. Other participants, however, told the carmaker that the restriction was limited to two-wheelers, and four-wheelers that use flex fuel can still be launched.
During the meeting, ethanol producers also asked the Centre to request states not to focus on EVs alone and promote FFVs as well. They also sought road tax rebates for FFVs, similar to what are available to EVs in states like Delhi, according to the people.
The industry also discussed the possibility of a reduction in goods and services tax (GST) for flex-fuel two-wheelers. However, the industry did not ask for any reduction in GST rates on flex-fuel four-wheelers.
Indian automakers have launched a few FFVs since the push for such vehicles began in June. Hero MotoCorp unveiled its first two flex-fuel motorcycles, the Splendor+ and HF Deluxe, on June 3. Maruti Suzuki launched the WagonR Flex Fuel on June 4, becoming the country’s first carmaker to launch a flex-fuel passenger vehicle. However, the government wants many more such launches.
Meanwhile, in June, the government also announced a phased plan to expand the availability of E85. Petroleum Minister Hardeep Singh Puri said the initial rollout would cover 50-100 retail outlets in Delhi-NCR and the Mumbai-Pune-Nagpur corridor. The network will expand to 500 outlets by December and around 5,000 outlets across major cities by the end of 2027.
Sources mentioned that the automakers first want the availability of flex fuel to increase rapidly, as that would show customers that buying an FFV is a logical and feasible choice. OMCs, on the other hand, have been asking the MoPNG to exhort automakers to launch more FFVs, as they are worried about the investments they are incurring to set up flex fuel dispensing stations at oil retail outlets.
Among the upcoming FFVs, Tata Motors is the only major automaker to have publicly given a specific launch window, saying its first flex-fuel passenger vehicle could be ready by the end of 2026 or early 2027. Honda Motorcycle and Scooter India has already launched the E85-compatible ADV160, with deliveries scheduled to begin from mid-October.
Royal Enfield is also testing an E85-compatible Classic 350, although the company has not announced an official launch date. Kia, meanwhile, unveiled a flex-fuel version of the Syros earlier this month but has not confirmed when the production version will arrive. Toyota, Hyundai and Mahindra have showcased or developed flex-fuel technology, but have not announced firm commercial launch timelines.
The MoPNG and the Society of Indian Automobile Manufacturers did not respond to Business Standard’s queries on the matter.
