CHENNAI: After years of the domestic automotive industry’s transition story centering on electric vehicles, another ‘E’ is hogging the limelight: ethanol.
The shift comes as India gears up for the nationwide rollout of E20 petrol from April 2026, four years ahead of the original target, with policymakers and automakers positioning ethanol as a complementary pathway to cleaner mobility.
Maruti Suzuki has added momentum to the narrative by unveiling India’s first flex-fuel passenger car: the WagonR Flex Fuel prototype, capable of running on ethanol blends ranging from E20 to E100. The launch, earlier this month, coincides with the Centre’s efforts to dispel concerns around ethanol-blended fuel.
The Ministry of Petroleum and Natural Gas recently clarified E20 petrol is safe and that its use will not invalidate vehicle insurance, dismissing reports suggesting otherwise. It reiterated that ethanol blending is a globally accepted practice followed in countries such as Brazil, the US and Japan, and said the programme has already helped India save over Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports while boosting demand for agricultural feedstock.
Automotive R&D veteran R Mahadevan, director, Simpson & Co, said the conversation around alternative fuels is naturally broadening beyond electric vehicles.
“Given the huge crude import bill that India incurs, E20 is a step towards energy security. Twenty per cent ethanol means less crude import,” he said. Ethanol also burns more completely than petrol, resulting in lower hydrocarbon and carbon monoxide emissions.
Mahadevan said India’s decision to advance the E20 rollout from 2030 to April 2026 demonstrates the country’s intent to accelerate adoption. “We are not late. In fact, we have advanced the adoption by four years,” he said, pointing to countries like Brazil’s decades-long experience with ethanol-blended fuels.
While ethanol has a lower energy density than petrol (translating into a 3-8 per cent reduction in fuel economy) Mahadevan said engine tests have shown E20 can deliver reliable performance with relatively minor engineering changes. “Flex-fuel is the answer,” he said, explaining that redesigned fuel-injection systems, ethanol-resistant materials and calibration improvements can address issues such as corrosion and performance.
Auto industry veteran S Ramachandran also backed the transition. “As an automobile man, and even for those who love automobiles, we have to support ethanol. It is the need of the hour,” the quality management consultant said, while noting researchers would continue to refine engine technology to ensure smooth operation.
Maruti Suzuki managing director-CEO Hisashi Takeuchi has said the company sees flex-fuel technology as part of a broader multi-fuel strategy that includes battery electric vehicles, hybrids and CNG. “Once it reaches mainstream adoption, flex-fuel vehicles have the potential to cut oil imports, carbon emissions and
local air pollution while enhancing domestic value addition and farmer incomes,” he said.
Industry experts believe the rise of ethanol does not diminish the role of electric vehicles. Instead, they see India’s vast automobile market accommodating multiple clean-energy solutions.
“Electric vehicle penetration will continue to increase, but biofuels are also an important option,” Mahadevan said. “As of now, ethanol tops the chart.”
With government backing, industry support and automakers beginning to roll out flex-fuel models in the mobility conversation, ethanol is steadily claiming its place alongside electric as the country’s next major automotive transition.