India is shaping a transport transition that differs from most major global automobile markets by promoting both electric mobility and ethanol-powered internal combustion engine (ICE) vehicles as parallel solutions rather than competing alternatives.
The government’s push toward higher ethanol blends, supported by the rollout of E85 fuel and policy measures for flex-fuel vehicles, signals an effort to reduce transport-related emissions while continuing to use existing engine technologies.
This approach contrasts with countries such as China and those in Europe, where clean mobility strategies have largely focused on moving away from conventional fuel engines.
India’s latest step includes the introduction of E85 fuel, containing 80–85 per cent ethanol, through 48 retail outlets. The distribution network is expected to expand to 500 outlets by the end of 2026 and nearly 5,000 outlets by 2027.
The move follows the nationwide implementation of E20 petrol and represents the next stage of India’s ethanol programme. Simultaneously, the government is working to bring higher ethanol blends including E85 and E100 under formal automotive fuel regulations to support large-scale adoption of flex-fuel vehicles.
Even as policy momentum builds, industry stakeholders are urging a gradual and targeted rollout.
Randheer Singh, founder of ForeSee Advisors and former director for electric mobility at NITI Aayog, said India’s strategy reflects global lessons but should remain practical in execution. He suggested that flex-fuel adoption should initially focus on regions where ethanol availability and economics are already favourable.
According to Singh, states with sugar surpluses such as Maharashtra, Uttar Pradesh and Karnataka are better suited for phased expansion. He said E20 should remain the country’s primary focus because it supports the existing vehicle base and can deliver immediate impact. Flex fuel, he added, should be positioned as a regional solution that utilises surplus ethanol, strengthens energy security and supports farm incomes rather than becoming mandatory nationwide.
Automobile manufacturers have also highlighted challenges beyond vehicle technology.
Industry executives said engineering solutions are largely in place, but consumer acceptance remains uncertain as buyers continue to evaluate fuel availability, mileage performance and overall running costs.
Another senior executive noted that India is attempting to accelerate a transition in consumer behaviour that took countries such as Brazil many years to establish. With consumers still adapting to E20, wider use of higher ethanol blends would require supporting infrastructure, affordability and stronger public confidence.
The shift presents a unique challenge for policymakers. Unlike electric vehicles, which involve adopting new vehicle technology, flex-fuel vehicles depend on consumers adapting to a new fuel ecosystem while continuing to use familiar engine platforms. Industry observers also pointed out that higher purchase costs may influence adoption.
Despite these concerns, industry leaders continue to see strategic value in ethanol-based mobility.
Flex-fuel technology allows existing engines to operate on different combinations of petrol and ethanol, enabling manufacturers to build on current investments while helping India reduce dependence on oil imports and lower vehicle emissions.
Ravi Bhatia, president of Jato Dynamics, said China’s mobility transition has largely been driven by battery-electric vehicles, while Europe has relied on regulations to accelerate a similar move. Brazil remains the only major market where ethanol has become widely accepted as a transport fuel. India, he said, is attempting to create a comparable ethanol ecosystem within a much shorter timeline while continuing to expand electric mobility.
