India’s two-wheeler market is on the verge of a significant transformation as major manufacturers gear up to introduce flex-fuel vehicles designed to run on high ethanol blends. Renowned companies such as TVS, Hero MotoCorp, Honda, and Bajaj Auto are expected to showcase their production-ready flex-fuel two-wheelers at the upcoming Bharat Mobility Show in January 2025.
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The Push Towards Sustainable Mobility
Introducing flex-fuel vehicles aligns with the Indian government’s aggressive efforts to reduce carbon emissions and lessen the nation’s dependency on fossil fuels. Flex-fuel vehicles, which can operate on ethanol-petrol blends with up to 85% ethanol, represent a more sustainable alternative to traditional petrol-powered vehicles. Ethanol, a renewable biofuel derived from agricultural products, offers significant environmental benefits by reducing greenhouse gas emissions.
Industry Readiness and Policy Support
Top two-wheeler manufacturers have expressed their readiness to commence mass production of flex-fuel vehicles, contingent on supportive government policies. In a recent meeting with Union Minister Nitin Gadkari, representatives from TVS, Hero MotoCorp, and other leading companies confirmed their capacity to begin large-scale production. However, they emphasized the need for enabling policies to facilitate the successful adoption of this innovative technology.
Key Industry Demands for Flex-Fuel Rollout
To ensure the smooth introduction of flex-fuel vehicles, the automotive industry has proposed several key measures:
- Reduced GST Rate: The industry is advocating for a reduced GST rate of 18% on flex-fuel two-wheelers, down from the current 28%. This reduction is crucial to offset the lower fuel efficiency of ethanol-powered vehicles, which could lead to higher operational costs for consumers.
- Ethanol Fuel Availability: A clear and consistent roadmap for the nationwide availability of ethanol-blended fuels is essential. Ensuring that consumers across India can access these fuels is vital for the widespread adoption of flex-fuel vehicles.
The Future of Sustainable Mobility in India
The shift towards flex-fuel vehicles marks a significant milestone in India’s clean energy journey. However, the success of this initiative hinges on the government’s ability to provide the necessary policy framework and infrastructure. As the industry prepares for the next Auto Expo, attention will be focused on developments within the ethanol-powered two-wheeler segment, which could pave the way for a more sustainable future for India’s automotive sector.
