Overview
- The Road Transport Ministry has signed regulations that legally permit near‑100% ethanol (E100) as a certified vehicle fuel and set a framework for manufacturers, retailers and testing agencies to develop and sell E100‑capable cars and motorcycles.
- About a dozen automakers are reported to be preparing flex‑fuel or E100‑compatible models and a few compatible vehicles have already been shown, including Maruti Suzuki’s WagonR Flex and Hero’s flex‑fuel motorcycles.
- The government has started a limited E85 pilot at roughly 48 public OMC outlets and has targets to expand to about 500 outlets by December 2026 and roughly 5,000 by end‑2027 to support higher‑ethanol use on roads.
- Technical and commercial limits remain major hurdles because E100 needs ethanol‑resistant fuel system parts, revised engine calibration or dedicated engines, separate storage and pumps at stations, and may deliver lower kilometres per litre due to ethanol’s lower energy density.
- Wider adoption will hinge on manufacturer certifications, station rollouts, retrofit options and the fuel’s cost‑per‑kilometre economics, while the policy aims to cut crude imports and boost demand for domestic ethanol from sugar mills, distilleries and farmers.