BT Explainer: Why Centre wants auto industry to introduce flex fuel vehicles that use E85

The government is set to issue a draft policy for E85 (ethanol 85), where ethanol blending in petrol is as high as 85% to power flex-fuel vehicles.

Earlier this week, the government discussed with several stakeholders on E85, indicating that oil marketing companies are ready to offer higher ethanol-blended fuel. The Centre has also urged the automobile industry to be ready with flex-fuel engines.

Unlike E20 (20% ethanol blended petrol), E85 is only used by flex-fuel vehicles. Currently, no automobile manufacturer in India sells flex-fuel vehicles, even though many automakers are working on it.

What is a flex-fuel vehicle?

Flex fuel vehicles are cars designed to run on more than one type of fuel—typically a blend of petrol and ethanol. The most common mix is called E85, which can contain up to 85% ethanol and 15% petrol.

Such vehicles have specially designed engines and fuel systems that can automatically detect the fuel mixture and adjust combustion accordingly. This means the car adapts on its own.

Which auto companies produce flex-fuel vehicles?

While many automakers have showcased flex-fuel prototypes at auto shows, no manufacturer is making these vehicles on a commercial scale.

Maruti Suzuki India Ltd, the country’s biggest carmaker, has taken the lead in flex fuel vehicles. The Japanese carmaker plans to start mass production of flex-fuel vehicles in India soon.

French carmaker Renault, which already sells flex fuel vehicles in countries like Brazil and Colombia, may introduce such a vehicle in India if the policy on E85 becomes clear.

At the Bharat Mobility Global Expo 2025, Tata Motors, too, showcased the Tata Punch Flex Fuel (capable of 100% ethanol).

TVS Motor Company is also investing in flex-fuel vehicles. The two-wheeler manufacturer is expected to roll out its first flex fuel motorcycle later in 2026.

Why does the Centre want flex fuel vehicles?

India imports fossil fuels worth Rs 22 lakh crore. The government wants to reduce crude oil imports over the long term and provide better income opportunities to the farmers. A higher blend of ethanol in petrol will lead to higher offtake of farm output such as sugarcane, corn, etc.

What are the challenges?

While E85 may offer lower emissions and cut down India’s crude oil imports, it has its own disadvantages. Ethanol has less energy per litre than petrol. That means lower mileage for consumers. It could become a challenge to offer E85 fuel through separate dispensers at all fuel pumps across the country, as a majority of vehicles will continue to have a lower blend of ethanol.