Cars in India to Be Ethanol Material-compliant Starting

  • Author :
  • TATA AIG Team
  • Published on :
  • 18/07/2023

India's ambitious goal to achieve 'net zero emissions by 2070', focusing on reducing the nation's carbon footprint from 2030, has put immense pressure on carmakers to manufacture green energy vehicles. However, "green energy vehicle" is often misconstrued as only electric vehicles. The Indian government, specifically the Ministry of Road, Transport and Highways, has a broader perspective, including alternate fuels, particularly ethanol-blended fuel.

Carmakers in India must comply with a range of 20% ethanol-blended or E20 fuel by April 2023. Maruti Suzuki, India's largest carmaker, has confirmed the introduction of ethanol fuel cars and that its entire model range will be transitioned to comply with the E20 fuel by March 2023, demonstrating its commitment to reducing emissions and supporting India's green energy initiatives.

Just like carmakers in India need to comply with the new set of rules put forward by the Central Government, you need to comply with car insurance regulations as a motorist in India. As a motorist in India, it is mandatory to comply with car insurance regulations. The Motor Vehicles Act of 1988 makes it compulsory for all vehicle owners to have a valid insurance policy that provides coverage for third-party liability. Your four-wheeler insurance policy will cover the costs if you're involved in an accident that causes injury or damage to a third party.

You can also opt for comprehensive car insurance, which covers both third-party liability and damage to your vehicle. While comprehensive coverage is not mandatory, it is highly recommended, as it protects against a wide range of risks. All you need to do is purchase a policy from a licensed insurance provider like Tata AIG. You can compare car insurance policies by visiting our website and choosing the best option that fits your needs.

Returning to the blog’s central theme regarding carmakers producing ethanol cars in India to remain compliant with the latest government laws. Continue reading to learn more.

What Exactly Is Ethanol and How's It Made?

Ethanol is a by-product of the sugar production process and can be an excellent substitute for petrol as a fuel mix. Ethanol is more affordable than petrol, as it can be produced domestically from crops, unlike crude oil, which needs to be imported.

A certain percentage of ethanol is mixed with petrol to create ethanol-blended fuel. In the case of E20, the fuel mix contains 20% ethanol and 80% petrol. This blend is expected to reduce greenhouse gas emissions and decrease India's dependence on fossil fuels.

The production of ethanol also has several benefits for the agricultural sector. For instance, it can provide an additional revenue stream for sugarcane farmers, India's primary source of ethanol production. Moreover, the increased demand for ethanol can also create job opportunities in the rural sector, where most sugarcane farms are.

Carmakers Who Are Shifting Towards Ethanol-Blended Fuel in India

Several carmakers in India are shifting towards ethanol-blended fuel as part of their efforts to reduce emissions and comply with government regulations. Some of the leading car manufacturers in India who have already announced their plans to transition to ethanol-blended fuel include:

- Maruti Suzuki: India's largest car manufacturer has confirmed that its entire model range will comply with the E20 fuel standard by March 2023. The company has been developing flex-fuel vehicles for several years and has already introduced an E15-compliant model in Brazil. The carmaker recently showcased its prototype flex-fuel vehicle, using the Wagon R as a testing bed. This innovative vehicle is designed to run on a blend of ethanol and petrol, allowing drivers to choose the fuel mix that best suits their needs. With this move, the carmaker is setting a new standard for flex-fuel vehicles in India and is paving the way for a more sustainable future.

- Toyota: The Japanese carmaker has strongly advocated hybrid vehicles and introduced several models that combine petrol engines with electric motors. The company has also been exploring the use of biofuels and has been testing ethanol blends in some of its models.

- Tata Motors: The company has been investing in developing engines that can run on biofuels for several years and has already introduced an ethanol-powered bus in India. The company has also been working on developing flex engine cars in India and has plans to launch several new models in the coming years.

- Honda: The Japanese carmaker has been developing engines that can run on ethanol blends for several years and has already introduced an ethanol-powered model in Brazil. The company has plans to introduce more ethanol vehicles in India in the coming years.

- Mahindra & Mahindra: The Indian carmaker has been a vocal proponent of alternative fuels and has been promoting the use of ethanol for several years. The company has introduced several flex-fuel cars that can run on blends of petrol and ethanol and has plans to expand its range of ethanol-powered vehicles.

Benefits of Using Ethanol-Blended Fuel

There are several benefits to using ethanol-blended fuel, especially in the context of India's push towards a more sustainable future. Some of the key benefits are:

- Sustainability: Using ethanol-blended fuel can promote a more sustainable and eco-friendly way of life. It can help reduce our carbon footprint and create a cleaner, healthier environment for future generations. Ethanol-blended petrol has significantly reduced emissions of harmful pollutants such as carbon monoxide, hydrocarbons, and nitrogen oxides.

- Domestic Production: Ethanol from sugarcane and corn can be produced domestically, reducing India's dependence on imported crude oil. It can help boost local economies and create new jobs in the biofuel industry. Last year, oil companies in India procured ethanol worth about Rs 21,000 crore, a significant source of income for sugarcane farmers. However, the government is also exploring other avenues for producing more sustainable ethanol that does not compete with food crops.

- Reduced Emissions: Ethanol is a renewable fuel that burns cleaner than petrol, resulting in lower greenhouse gas emissions. Using ethanol-blended fuel can significantly reduce harmful emissions and improve air quality. Engine Performance: Ethanol has a higher octane rating than petrol, which can improve engine performance and efficiency. It can result in better mileage and lower maintenance costs for vehicles.

- Lower Cost: Ethanol is generally less expensive than petrol, making it a more affordable option. By using ethanol-blended fuel, we can reduce our fuel costs and save money in the long run.

Future of Flex-Fuel in India

After the successful implementation of the EV initiative, the Union Minister for Road Transport and Highways, Nitin Gadkari, has been pushing for adopting flex-fuel cars in India that can run on ethanol-blended fuel. He believes this could be a good solution for India, similar to the case of Brazil, where E20 and higher blends have been used for decades.

While this is a promising development, it is essential to assess ethanol production's impact on food production carefully. In some regions where ethanol fuel is popular, there are concerns about using agricultural land for ethanol crops instead of food crops. It is essential to strike a balance between the production of ethanol and food to ensure sustainable development in the long run. The government's plan to encourage the use of non-food feedstock and water-sparing crops, such as maize, for ethanol production can be a step in the right direction. It is crucial to take a comprehensive and sustainable approach towards adopting ethanol-blended fuel to ensure that it benefits both the economy and the environment.


The move to ethanol-compliant cars will help reduce greenhouse gas emissions and improve air quality. This decision also highlights India's commitment to meeting its climate goals and promoting a more sustainable future for its citizens. As the world continues to grapple with the challenges of climate change, India's efforts towards promoting renewable energy offer a beacon of hope for a cleaner and greener future.

However, car owners should also consider the importance of having adequate car insurance coverage. With the implementation of the new policy, car insurance premiums may change. Car owners must stay informed and review their policies to ensure they have the appropriate vehicle coverage. By combining ethanol-based fuels and proper car insurance coverage, individuals can contribute towards a more sustainable future while protecting their assets on the road. You can contact Tata AIG without hesitation for any questions or queries. We would be glad to help you.

Disclaimer / TnC

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