The road transport minister also expects EV adoption to rise to 35-40% next year, from an estimated 20-25% currently

Toyota Motor Corporation will launch a flex-fuel version of its Innova, capable of running on 100% bioethanol, this month, Road Transport Minister Nitin Gadkari said on Monday, adding that several major automakers, including Tata, Mahindra, Suzuki and Hyundai, are also working on ethanol-powered vehicles.
Speaking at ENRich 2026 in New Delhi, Gadkari said he had been using an Innova supplied by Toyota for the past one-and-a-half years. “Now, in this month, I am going to launch the flex engine car, Toyota Innova, which is on 100% bioethanol,” he said.
He added that the vehicle could run on ethanol as well as petrol. “So now Tata, Mahindra, Toyota, Suzuki, Hyundai, all are going to launch their flex engine and ethanol car, where we will use ethanol in place of petrol,” Gadkari said.
The minister said the shift towards alternative fuels was important to reduce India's dependence on imported fossil fuels. “Today, we have import of fossil fuel costing ₹22 lakh crore, and that is a big problem, a big challenge for India,” he said.
Gadkari cited the cost difference between petrol and ethanol, saying petrol was priced at around ₹120 per litre while ethanol cost approximately ₹75 per litre. Based on the mileage comparison with petrol, he claimed the effective fuel cost could work out to around ₹25 per litre.
Gadkari also said electric vehicle adoption was gaining traction in India and expected the proportion of people owning EVs to increase to 35-40% next year, from an estimated 20-25% currently.
“If I ask you here, how many people have electric vehicles, then I believe that 20-25% will come up. Next year, 35-40% will come up,” he said, referring to the audience at the event.
He also highlighted the role of alternative fuels such as ethanol, methanol, biodiesel, compressed biogas (CBG) and hydrogen in reducing dependence on conventional fuels.
“The question is not to leave methanol, ethanol, hydrogen or electric on people. We will decide on the market force. We will select the cost that is available,” he said, adding that the focus should be on ensuring that India's energy requirements are met through domestic sources.
The government has already rolled out petrol blended with 20% ethanol (E20). Last month, the Ministry of Road Transport and Highways notified amendments to the Central Motor Vehicles Rules to provide for vehicles capable of running on higher ethanol blends, including E85 and E100. Such fuels can be used only in vehicles specifically designed and certified for them.