India bets on dual mobility strategy as ethanol and electric vehicles move forward together
India is pursuing parallel growth of EVs and ethanol-powered flex-fuel vehicles, expanding E85 fuel to 5,000 outlets by 2027. Experts recommend prioritising E20 nationally, while industry highlights consumer adoption, fuel availability and infrastructure as key challenges despite strong government policy support.
India is pursuing a mobility transition that differs from major automotive markets such as China and Europe by promoting the parallel growth of electric vehicles and ethanol-powered internal combustion engine (ICE) vehicles instead of replacing one with the other.
With the rollout of E85 fuel and policy support aimed at expanding flex-fuel vehicles, the government is advancing a strategy focused on reducing transport emissions while continuing to utilise conventional engine technology, The Economic Times reported.
Unlike China and Europe, where cleaner mobility policies have largely centred on shifting away from internal combustion engines, India is attempting to combine electrification with higher ethanol adoption. However, the transition continues to face caution from automakers, uncertainty among consumers and calls from experts for a balanced approach.
The latest phase of this strategy includes the introduction of E85 fuel, which contains 80–85 per cent ethanol, at 48 retail outlets. The network is planned to expand to 500 outlets by the end of 2026 and around 5,000 by 2027.
The rollout follows India’s nationwide adoption of E20 petrol and signals the next stage of the country’s ethanol programme. Alongside this, the government is working to formally include higher ethanol blends such as E85 and E100 within automotive fuel regulations, creating the framework for wider deployment of flex-fuel vehicles.
Industry experts have urged caution in scaling up the transition.
Randheer Singh, founder of ForeSee Advisors and former director for electric mobility at NITI Aayog, said India’s approach reflects lessons learned from global markets but argued that higher ethanol blends should initially be adopted only in regions where ethanol availability and economics already support such expansion.
According to Singh, sugar-surplus states including Maharashtra, Uttar Pradesh and Karnataka are better positioned for gradual demand creation. He said E20 should continue as the national priority because it remains compatible with the existing vehicle fleet and offers immediate scale. Flex-fuel development, he added, should remain targeted at regions with genuine ethanol surplus while supporting energy security and farm incomes rather than becoming a nationwide requirement.
Automobile manufacturers have also highlighted challenges beyond technology.
A senior executive from a passenger vehicle company said vehicle engineering is no longer the main concern, but consumer acceptance remains uncertain, with buyers seeking clarity on fuel availability, mileage and operating costs.
Another industry executive said India is attempting to accelerate a behavioural transition that took countries such as Brazil decades to establish. While consumers are still adapting to E20 fuel, higher ethanol blends would require further changes in fuel usage patterns, supported by infrastructure, affordability and consumer confidence.
The transition presents a different challenge from electric vehicles. While EV adoption involves moving to a new vehicle technology, flex-fuel adoption requires consumers to adjust to an entirely new fuel ecosystem while continuing to use conventional engines. Industry observers also noted that higher upfront vehicle costs may affect demand.
Despite these concerns, industry leaders believe ethanol remains an important option for India’s mobility goals.
Flex-fuel technology allows existing engine platforms to operate on different combinations of petrol and ethanol, enabling manufacturers to build on existing investments while supporting efforts to reduce oil imports and lower vehicle emissions.
Ravi Bhatia, president of Jato Dynamics, said China’s transition has largely been led by battery-electric vehicles and Europe has relied on regulation to accelerate a similar shift. Brazil remains the only major market where ethanol has become a mainstream transport fuel, while India is attempting to develop a comparable ethanol ecosystem in a shorter time frame and alongside electrification rather than replacing it.
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Source : ChiniMandi
