The upcoming 16th edition of the Auto Expo — The Motor Show — will feature working prototypes of ‘flex’ (flexible fuel) vehicles (FFVs) being showcased by automobile manufacturers, Rajesh Menon, Director General of the Society of Indian Automobile Manufacturers (SIAM), told Moneycontrol.

Accordingly, two-wheeler OEMs such as TVS Motor, Hero Motocorp, Bajaj Auto, Honda Motorcycle & Scooter India (HMSI), India Yamaha and Suzuki Motorcycle, are likely to display working prototypes of flex fuel two-wheelers.

Besides, four-wheeler OEMs, including Toyota Kirloskar Motor and Maruti Suzuki India, are likely to showcase working prototypes of flex fuel four wheelers.

For the uninitiated, FFVs are modified versions of current vehicles that can run both on pure gasoline and ethanol blended petrol.

“This is the first time that ‘Flex’ fuel vehicles will be shown. Besides, the sugar industry, which produces ethanol, will be participating in the show. We will also have oil marketing companies participating. The entire value chain of ethanol will be showcased at the event,” said Menon.

As such ethanol is an agro-based product, mainly produced from a by-product of the sugar industry.

Ethanol blending programme

Currently, an Ethanol Blended Petrol (EBP) programme is being implemented by the Centre.

The programme seeks to achieve blending of ethanol with motor spirit with a view to reduce pollution, conserve foreign exchange and increase value addition in the sugar industry.

Current regulations mandate up to 10 percent ethanol blending with petrol.

Under the EBP programme, all vehicles have to be fully E-20 compliant by 2025.

Recently, several media reports quoted Union Petroleum and Natural Gas Minister Hardeep Singh Puri as saying that preparations are underway to soon launch E-20 fuel.

Only last week, the GST Council had reduced tax on ethanol, which will be supplied to refineries for blending with petrol.

Furthermore, SIAM had on December 12 organized a tech demonstration to showcase ‘Flex Fuel Vehicles’. The event saw participation by several two-wheeler manufacturers, with car market leader Maruti Suzuki showcasing its WagonR flex fuel prototype.

Earlier this year, Toyota had showcased the Corolla Altis Hybrid. The vehicle has been designated as an ethanol-ready flex fuel hybrid car (FFV-SHEV).

Lower mileage challenge

“A cause for concern with FFVs is the lower energy or mileage to pure petrol. This I believe can be offset by achieving the right mix of ethanol to petrol, which can result in net savings despite lower mileage. FFV can bring about a flexibility in the type of fuel one can use in relation to the price of crude (varying consumption strategy),” said Sridhar V, Senior Partner, Grant Thornton Bharat LLP

“Till the time EV gathers momentum and has a stable market, FFVs can possibly help the country meet its commitment towards pollution control and reduction of imports,” he added.

Shamsher Dewan, Senior Vice President and Group Head – Corporate Ratings, ICRA, cited investments in alternate technologies such as flex fuels and hydrogen, amongst others, and said they are part of companies’ strategies to be future ready and offer a range of solutions to customers.

“While EVs are expected to gain traction over the long term, the journey to become carbon-neutral will require a range of solutions, including hybrids and alternative fuels,” Dewan said.

Reducing import dependence

In addition, Shruti Saboo, Associate Director, Corporates, at India Ratings & Research, said that flex fuel has been introduced in India with the primary objective of reducing imported fuel costs.

“While the cost of operating a flex fuel vehicle is clearly higher than that of an electric vehicle, it is definitely lower than operating a petrol or diesel vehicle,” Saboo said.

“Moreover, given that EVs could take time to penetrate, especially in passenger vehicles and medium to heavy commercial vehicles, flex fuel will prove beneficial in the interim, in bringing down the overall cost of ownership as well as vehicular emissions,” she added.

The 16th edition of the Auto Expo will be held at the India Expo Mart in Greater Noida.