Even as the Central government looks at electric vehicles (EVs) as the country’s primary path towards green mobility transition, Japanese car major Toyota’s Indian joint venture - Toyota Kirloskar Motor (TKM) – says the national objective will be best served by flex fuel vehicles which runs on higher percentage of ethanol blended petrol as it meets the twin objectives of green transition and fuel self-reliance.

Addressing the media during a visit to the sugar and ethanol manufacturing complex of Triveni Engineering & Industries (TEIL) in Sabitgarh, UP on December 4, Vikram Gulati, country head & executive vice president, corporate affairs & governance, TKM said the suggestion to transition towards flex fuel vehicles is not to serve the interest of any specific industry or sector (automobile or bio-energy manufacturers) but of national interest as batteries, the key component of EV vehicles, are highly import dependent while flex fuel vehicles can run on up to 100% ethanol which can be produced entirely in India. It will help the country reduce dependence on imported oil and battery components, minimise supply chain uncertainties, and save foreign exchange, he explained.

Flex fuel vehicle engines are developed through some modification on conventional internal combustion engines (ICE) to enable it to use higher blends of ethanol as fuel. Currently ICE engines are allowed to run on 20% ethanol blended petrol, but not more.

According to Gulati, India’s current policy environment and tax structure do not support the production or sale of flex fuel vehicles. The government should recognize the merit of ethanol and make it customer friendly through lower taxation, he said. “The customer should not pay higher tax than conventional ICE and running cost should have parity vis-à-vis base blend”, he said.

Speaking on the occasion, Deepak Ballani Director General, Indian Sugar and Bio Energy Manufacturers Association (ISMA) pointed out that based on the current uptake of ethanol, the country has an excess capacity to produce over 450 crore litres of ethanol. He suggested that tax incentives on higher ethanol blend compatible vehicles and differential pricing on fuel can create demand and hence a market for flex fuel vehicles in India. Establishment of ethanol pumps where sugar biorefineries can directly dispense E100 (100% ethanol) and carbon credits for biofuels, similar to a RenovaBio Policy in Brazil, are the policy and regulatory changes that can make a difference, Ballani said.

The factory visit was organised by ISMA to showcase how an integrated sugar bio-refinery functions and the wider role such facilities play in India’s evolving bio-energy landscape.