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India Pushes for E85, E100 Fuels as Auto Industry Weighs Ethanol Supply Risks

India proposes bringing E85 and E100 fuels under vehicle rules amid ethanol supply concerns

High-ethanol fuels and flex-fuel vehicles emerge as India expands alternative fuel
Summary
  • Government proposes E85 and E100 fuels under Central Motor Vehicles Rules framework.

  • Flex-fuel vehicles can operate using petrol, ethanol or blended fuel combinations efficiently.

  • Industry experts question ethanol supply readiness beyond India’s ongoing E20 fuel programme.

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The government has proposed to bring E85 and E100 under the Central Motor Vehicles Rules, which will enable testing and evaluation of vehicles designed for higher ethanol blends.

The proposal is more than a policy discussion with industry experts saying the test will be whether the country’s ethanol supply chain can grow beyond the limits of the current E20 programme.

How E85 Fuel Works

E85 fuel is a high-octane blend obtained from mixing 85% ethanol and 15% petrol, designed for specifically designed Flex Fuel Vehicles (FFVs) to reduce emissions.

Unlike standard petrol, E85 provides higher performance due to its high octane rating, but it results in approximately 20-30% lower fuel efficiency.

Uses of E100 Fuel

E100 fuel (100% ethanol) in India is used as a clean-burning, high-octane (100-105) automotive fuel designed for Flex-Fuel Vehicles (FFVs) to reduce carbon emissions and dependency on crude oil imports.

Launched by IndianOil in 2024, it is being distributed in 183 retail stations across five states and is transitioning toward becoming a mainstream fuel for specialised vehicles.

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Understanding Flex-Fuel Vehicles

According to the India Science, Technology and Innovation Portal, a flex-fuel vehicle (FFV) in India is an internal combustion vehicle designed to run on petrol, ethanol or a blend of both, typically ranging from 20% (E20) up to 85% (E85) ethanol.

These vehicles use specialised engines and sensors to adjust performance automatically based on the fuel mix, aiming for lower emissions, reduced oil dependence and lower running costs.

Top Ethanol Producing States

According to a ChiniMandi report published on August 9, 2025, Maharashtra leads in ethanol production capacity with 396 crore litre, followed by Uttar Pradesh with 331 crore litres and Karnataka with 270 crore litres.

Risks of Ethanol Blending

According to a BBC report published on August 5, higher ethanol blending (such as E20 or 20% ethanol) primarily risks reduced fuel efficiency, increased engine corrosion and degradation of rubber/plastic components, particularly in older vehicles not designed for it.

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While newer vehicles are compatible, higher ethanol content (which is hygroscopic) can cause moisture accumulation, leading to clogged injectors and hard cold starts.