India Pushes Toward High-Ethanol Flex-Fuel Framework - E85, E100 On The Way

The Ministry of Road Transport and Highways has issued a draft notification proposing amendments to the Central Motor Vehicles Rules to formally incorporate E85 and E100 fuels. E85 is a blend of 85 percent ethanol in petrol; E100 allows vehicles to run entirely on ethanol. The draft is open for public comments before a final decision is taken.

India achieved its E20 target - 20 percent ethanol blending in petrol - in 2025, completing nationwide rollout 5 years ahead of the original 2030 timeline. The push to E85 follows directly, driven by a need to cut petroleum import costs compounded by supply disruptions and price volatility from the ongoing West Asia conflict.

E85, E100 - What the Draft Proposes

Beyond E85 and E100, the notification also proposes new fuel classifications. The petrol description will change from E10/E to E10/E20, while E85 and E100 are explicitly included in the regulatory framework. Biodiesel references will be updated from B10 to B100.

The draft also standardises emission-testing parameters and technical terminology. It proposes increasing the gross vehicle weight threshold from 3,000 kg to 3,500 kg in select vehicle categories, and revises hydrogen fuel classification from "Hydrogen + CN" to "Hydrogen + CNG."

E85, E100 - The Economic Case

Government estimates show the Ethanol Blended Petrol programme already saves approximately 4.5 crore barrels of crude oil annually, with foreign exchange savings of around Rs 1.65 lakh crore. India's ethanol production capacity currently stands at nearly 2,000 crore litres annually, with an additional 400 crore litres of capacity set to come online next year.

SIAM estimates that 20 percent blending generates around Rs 40,000 crore in payments to farmers and saves approximately Rs 43,000 crore in foreign exchange. SIAM has recommended tax incentives on ethanol-blended fuels to help offset efficiency losses for consumers, though no such measures have been announced yet.

E85, E100 - Technical Challenges for OEMs & Infrastructure

Cars manufactured after April 2023 are E20-compliant and materially compatible with ethanol blends up to 30 percent. For higher blends, manufacturers will need to redesign specific engine components - ethanol introduces higher moisture exposure and accelerated corrosion risk.

Adapting a vehicle for E20 compatibility is relatively straightforward. Ensuring compatibility for E85 and E100, however, requires extensive changes to engine design, fuel systems, and materials. Autocar India's own tests recorded mileage drops of up to 12 percent on older vehicles during the E10-to-E20 transition.

Fuel stations will also require separate storage tanks and dedicated dispensing mechanisms for E85 alongside regular and E20 petrol. If trials proceed as planned, initial testing could begin as early as December 2026.

The Flex-Fuel Picture

Brazil offers the clearest reference poin for India when it comes to flex fuel vehicles and higher ethanol blendst. Flex-fuel vehicles accounted for 74.4 percent of all new light vehicle registrations in Brazil in 2025, where the country runs E27 as standard pump fuel.

India's ethanol industry body ISMA has pointed to Brazil's model as the blueprint, with ISMA director general Deepak Ballani identifying competitive E100 pricing and eliminating the cost premium on flex-fuel vehicles as the two non-negotiables for the transition to succeed.