From Reducing Oil Imports to Farmer Prosperity: Sh. Hardeep Singh Puri Launches First Flex-Fuel Passenger Vehicle

June 07, 2026

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(India Ministry of Petroleum and Gas) India among countries with lowest fuel price increase despite global crisis: Shri Hardeep Singh Puri -- If 50% of all new two-wheelers and four wheelers sold in India runs on Flex-Fuel, it can generate ₹12,403 crore additional income for farmers: Shri Hardeep Singh Puri

Union Minister for Petroleum and Natural Gas Shri Hardeep Singh Puri today launched India’s first flex-fuel passenger vehicle by Maruti Suzuki in New Delhi, fuelling the vision of Aatma Nirbhar Bharat. Union Minister for Road, Transport and Highways, Sh. Nitin Gadkari was also present during the event. Flex-fuel vehicles can operate on a range of ethanol–petrol blends, from E20 up to E100.

Speaking at the launch, the Minister said the entry of flex-fuel technology into the passenger vehicle segment is not merely a product launch, but also the beginning of a new chapter in India's energy transition. Shri Puri noted that India has nearly 37 lakh passenger vehicles representing the aspirations of middle-class India and the future of personal mobility. Large-scale adoption of flex-fuel technology in this segment can significantly multiply the impact of ethanol-based mobility.

The minister said that before military hostilities began on February 28th, nearly 60% of India’s LPG imports were passing through the Strait of Hormuz . As a country with 1.4 billion people and energy demand growth at three times the global average, India ensured uninterrupted availability of petroleum products across the country. “There was not a single dry-out anywhere in the country. People continued travelling normally by road and air. India maintained near-normalcy despite global disruptions,” the Minister said.

He added that while some attempts were made to spread misinformation and create artificial shortages, the situation remained fully under control due to timely policy interventions and effective management.

Sh. Puri credited the leadership of Prime Minister Shri Narendra Modi for balancing the three key pillars of India’s energy strategy — availability, affordability and sustainability. On availability, Shri Puri highlighted that India maintained uninterrupted supplies of crude oil, LPG and natural gas despite global volatility. India increased domestic LPG production from 32 TMT per day pre crisis to nearly 52 TMT per day, while also expanding the transition towards piped natural gas and CNG.

On affordability, the Minister said India recorded one of the lowest increases in fuel prices globally. He recalled the Prime Minister’s decision to reduce central excise duties on petrol and diesel by ₹10 per litre to provide relief to consumers.

Talking about Sustainability, Sh. Puri recalled his earlier experience in Brazil and the USA where ethanol blending based on sugar and maize had already demonstrated success. He said India’s ethanol blending program has become one of the most successful energy transition initiatives. He noted that India’s ethanol success story was built through a whole-of-government approach and creation of a strong ecosystem involving farmers, ethanol producers, oil marketing companies, vehicle manufacturers, scientists and financial institutions.

India now has the capability to produce ethanol from multiple feedstock sources such as broken grains, agricultural waste, bamboo and sea weed.

Ethanol blending has increased from less than 1.5% in 2013-14 to 20% in 2025-26, achieving the target 5 yrs ahead of the schedule. Ethanol procurement has risen from about 38 crore litres in ESY 2013-14 to more than 1,040 crore litres today, while ethanol production capacity expanded nearly five fold from 421 crore litres in 2014 to ~2000 crore litres in 2026. This shift has reduced crude oil imports, saved foreign exchange, lowered emissions, and increased farmer’s income.

Sh. Puri noted that if 50% of the new two and four wheelers sales eventually shift to flex fuel compliant vehicles, it will create additional demand for 311.8 crore litres of ethanol and provide ₹12,403 crore additional income for farmers. This would also lead to 66.4 lakh metric tonnes less CO₂ emissions

NITI Aayog officially classifies ethanol-based Flex-Fuel Vehicles (FFVs), including vehicles running on high ethanol blends such as E85, as Zero-Emission Vehicles. E85 fuel also produces near-zero particulate matter (PM) emissions, making flex-fuel vehicles a promising solution for addressing the country’s growing air pollution challenge.

The Minister also outlined the Government’s roadmap for creating a nationwide flex-fuel ecosystem. Under the proposed roadmap, E85 has been identified as the mono-fuel standard for Flex-Fuel Vehicles under BIS specifications. The plan proposes an initial roll out of 50–100 FFV-ready fuel retail outlets in the Delhi-NCR and Mumbai–Pune–Nagpur corridors, expanding to nearly 500 outlets by December 2026 and approximately 5,000 outlets across major cities by end-2027.

The Government is also working on supportive measures such as pricing support, road tax concessions, availability of E85 testing fuel, special identifiers for FFVs and retail outlets, consumer awareness initiatives, and development of storage and dispensing infrastructure to increase adoption. Sh. Puri said that this is not merely a transition in fuel, but it is the creation of a complete ecosystem for cleaner mobility, stronger energy security, and greater self-reliance.

Referring to the recent launch of Flex fuel motorcycles by Hero MotoCorp and today’s launch of a flex-fuel passenger vehicle by Maruti Suzuki, the Minister said the country is entering a new phase in clean mobility.

Congratulating Maruti Suzuki for its contribution to India’s clean mobility transition, Shri Puri said India’s energy transition will be built in India, powered by Indian innovation, supported by Indian farmers and driven by Indian consumers. He urged automobile manufacturers to accelerate the introduction of flex fuel models across vehicle segments, and Oil Marketing Companies to rapidly expand E85 availability across the country. READ MORE

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Excerpt from Autocar Professional: The Grain Ethanol Manufacturers Association has formally adopted Maruti Suzuki's E85-compatible flex-fuel vehicle technology to demonstrate the industry's operational readiness for higher biofuel blends. Announced on 8 June 2026, the adoption by the apex industry body representing grain-based ethanol producers is positioned as a strategic validation of next-generation renewable fuel systems within India's commercial mobility landscape. The transition follows the successful national expansion of the primary blending program, which scaled fuel blending averages from approximately 1.5 percent to a 20 percent baseline baseline over the past decade.

As the domestic manufacturing sector prepares for its next phase of market growth, industrial associations are shifting focus toward emerging applications like E85 transport solutions and ethanol-based cooking infrastructure. The implementation of the technology aligns with the recent commercial introduction of E85 fuel in the country, offering a structured pathway for original equipment manufacturers to expand localized fuel utilization and systematically insulate the economy from global crude price volatility.

Dr. C.K. Jain, President of GEMA, stated that while achieving the initial 20 percent blending target marked a significant milestone for the national biofuel program, the long-term trajectory of the industry must extend beyond E20 parameters. READ MORE

Excerpt from Autocar Professional: Maruti Suzuki is targeting to cut vehicle development timelines by 25% as it prepares for one of the most intensive product rollout programmes in its history, according to sources familiar with the matter.

This comes as the carmaker plans to launch nine new models over the next three years, including seven SUVs, to strengthen its position in a market where product cycles are shortening and competition is becoming intense.

Autocar Professional had earlier reported that Maruti Suzuki is working on a broader line-up of new sub-compact SUVs and MPVs, aimed at expanding its presence in the mainstream passenger vehicle market.

Sources said the target is to reduce development timelines from 48 months to 36 months, a move that would allow the company to bring products to market faster while managing a broader portfolio spanning SUVs, electric vehicles, hybrids, CNG and flex-fuel models.

The push comes as rivals are aggressively expanding their SUV portfolios, accelerating refresh cycles and introducing new technologies at a pace that has raised the competitive intensity across segments.

For Maruti Suzuki, which is preparing a larger and more diverse product portfolio than at any point in its recent history, the ability to execute faster is becoming increasingly important.

The scale of the upcoming product programme explains the urgency.
Utility vehicles now account for the bulk of Maruti Suzuki’s passenger vehicle sales and continue to be the industry's most fiercely contested segment.

The future line-up will be heavily skewed towards utility vehicles while offering multiple powertrain options, such as petrol, CNG, hybrid, flex-fuel and electric variants.

Unlike earlier product cycles that were centred largely around conventional ICE, future models will require parallel development of multiple powertrains, localisation, and its validation and supplier ecosystems.

Managing multiple programmes places greater demands on engineering teams, manufacturing and suppliers. All these will have to work on tighter timelines than in earlier product cycles.

A key element of Maruti Suzuki's approach is increasing the use of digital engineering tools across the development process.

The company is planning to expand the use of simulation-led development, virtual validation and digital testing to reduce dependence on lengthy physical validation cycles.

Sources said the company’s targets highlight the growing role of AI and machine learning in analysing data, identifying potential issues earlier, and improving development efficiency.

By identifying potential issues before prototypes are built and tested, engineers can reduce the number of development iterations and shorten programme timelines without compromising durability or reliability standards.

Automakers globally have increasingly adopted digital development tools as vehicle architectures become more complex and software content expands.

The shorter development cycle also requires changes across the supply chain. Maruti Suzuki is encouraging suppliers to become involved earlier in vehicle programmes, particularly in areas related to engineering, localisation and validation.

Sources said the company is seeking concurrent engineering, where vehicle development, component design, tooling and manufacturing preparation progress simultaneously rather than sequentially. READ MORE