Govt starts negotiations with auto OEMs over new ethanol blending target for India
- The Indian government has begun negotiations with automobile OEMs to set a new ethanol blending target for petrol beyond the current 20 percent level.
- This move follows progress toward the 20 percent ethanol blending target expected by October 2025 and aims to support the government’s 30 percent ethanol blending goal by 2030.
- OEMs and auto component makers have expressed concerns about the high investment needed, fuel availability, and muted consumer demand amid geopolitical and economic challenges.
- Industry investment in capacity expansion totals about $11 billion, and engine upgrades for blending over 20 percent ethanol could raise vehicle costs by up to 4 percent, according to executives.
- The negotiations and draft policy are expected to influence future ethanol fuel availability and automotive manufacturing strategies across India.
14 Articles
14 Articles
Govt starts negotiations with auto OEMs over new ethanol blending target for India
Industry experts told Moneycontrol that automakers would have to make some changes in the engine for the vehicle to be compliant with a fuel having an ethanol blend of over 20 percent, increasing the overall cost by 2.5 percent to 4 percent.
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