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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.
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revistanorte.com.ar broke the news in on Tuesday, May 13, 2025.
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