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Indian Automakers Prepare for Flex-Fuel Vehicle Rollouts Amidst Policy Changes

TL;DR

Indian automakers are set to launch flex-fuel vehicles by March 2026 to align with new emission rules and reduce oil imports, with Maruti Suzuki leading the way.

The Indian automotive industry is gearing up for a significant shift with major automakers, including Maruti Suzuki, Toyota, Hyundai, and Tata, preparing to launch flex-fuel vehicle models. This comes in response to the government's push for higher ethanol blending targets and updated Bharat Stage VI Phase 2 rules, effective from 2026.

Flex-fuel vehicles, capable of running on conventional petrol or higher ethanol blends (up to E85), are seen as a crucial solution to reduce crude oil imports and meet new emission standards. Maruti Suzuki aims to introduce its first flex-fuel model by March 2026, potentially based on popular models like the Brezza or Fronx. These vehicles are expected to make up 5% to 10% of new car sales by the end of 2026, with anticipated pricing accessible to a broad range of buyers.

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