Automakers accelerate flex fuel vehicle development ahead of new CAFE rules announcement
Fuel Efficiency
(CAFE) rules would balance both electric and flex fuel engines.
This means the new CAFE 3 framework, due in April 2027, will give
flex fuel vehicles
that run on petrol-ethanol blends the same regulatory benefits as EVs.
Flex fuel refers to petrol mixed with ethanol anywhere between 20% to 100% that is derived from the fermentation of sugars and starches found in plants.
Gadkari's recent remarks follow a meeting he held last year with representatives of the Society of Indian Automobile Manufacturers (SIAM) in which he asked automakers to look into ways of making these flex fuel vehicles more acceptable to the public, citing Brazil's successful integration of flex fuels and biofuels in its transportation.
During the Bharat Mobility Show 2025, automakers displayed flex cars — Maruti Suzuki Brezza, Toyota Hycross, Hyundai Creta, Tata Punch, and Mahindra XUV 3XO — that can run on up to 85-100% ethanol.
While ethanol is less expensive than petrol, there is a downside to the fuel: it delivers less efficiency or mileage by 30% than pure petrol. Toyota plans to overcome this disadvantage by electrifying the flex fuel vehicle using strong hybrid technology.
"Strong hybrid cars with petrol engines are usually 40% to 50% more fuel efficient than petrol-only vehicles. So the loss in efficiency from E100 will be more than compensated by the improved efficiency of a strong hybrid with less carbon footprints," said TKM Senior VP & director (technical & purchase) Sudeep S Dalvi, who expects the rollout of flex fuel vehicles to be aligned to government policies and regulations.
Maruti Suzuki has in its 2030 product plan said 25% of its vehicles will be compatible with
ethanol-blended fuel
E20 while another 25% will be
hybrid electric vehicles (HEV)
. At present, it has two HEV products in its portfolio: the Grand Vitara and Invicto, which use Toyota's Strong Hybrid Technology.
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