Leading Automakers to Launch 100 Percent Ethanol-Powered Vehicles, Says Gadkari

In a landmark move towards India’s biofuel future, Union Minister for Road Transport and Highways, Nitin Gadkari, announced that within the next six months, major automobile manufacturers including Mahindra, Toyota, Hyundai, and Tata will launch vehicles powered entirely by bioethanol. 

The upcoming launch of 100 percent ethanol-powered vehicles is expected to drive up ethanol consumption, reducing carbon emissions and enhancing the agricultural economy. Gadkari emphasised that the adoption of ethanol-powered vehicles will help India meet its carbon reduction targets, bolster the agricultural sector, and contribute to the country’s energy security.

Gadkari made this announcement at a special event held to celebrate the 75th birthday of Dr. Pramod Chaudhari, founder-chairman of Praj Industries Ltd., a pioneer in India’s biofuel sector. Dr. Chaudhari, widely recognised as India’s 'Ethanol Man,' has been instrumental in revolutionising the biofuel industry and making ethanol a viable alternative fuel in India. The Minister praised Dr. Chaudhari’s decades-long efforts in biofuel research and technology development, particularly in producing ethanol from sugarcane and other feedstocks.

Speaking virtually, Gadkari acknowledged Dr. Chaudhari’s 40-year journey in the biofuel sector, highlighting the positive economic impact of biofuel, such as the rise in maize prices after ethanol production began. He also pointed out the socio-economic benefits of biofuel development, stressing that it could help transform rural India into a network of 'smart villages,' curbing rural-to-urban migration and contributing to the government’s vision of an 'Atmanirbhar Bharat' (self-reliant India). Gadkari emphasized that the biofuel sector’s growth could play a pivotal role in making India the world’s third-largest economy.

India’s ambitious goal is to achieve a 20 percent ethanol blending target in petrol by 2025. With this target in mind, the government is confident that it will meet its ethanol goals on schedule. In addition, discussions have already begun for a roadmap to further increase ethanol adoption post-2025.

To meet the 20 percent ethanol blending target, India will need about 1,350 crore litres of ethanol for blending and industrial uses. However, to ensure consistent supply, the country must reach a production capacity of approximately 1,700 crore litres, assuming plants operate at 80 percent efficiency. As of September 30, 2024, India has already achieved an ethanol production capacity of 1,648 crore litres, with several states reporting surplus production capacity.

For the Ethanol Supply Year (ESY) 2024-25, Oil Marketing Companies (OMCs) have invited tenders for 916 crore litres of denatured anhydrous ethanol. The response has been overwhelmingly positive, with offers exceeding 970 crore litres—well above the required amount. OMCs have allocated approximately 837 crore litres to ethanol producers for this period, further ensuring the successful implementation of India’s ethanol blending strategy.

The widespread adoption of bioethanol in the transportation sector, combined with increased ethanol production, promises to reduce India’s reliance on fossil fuels, lower greenhouse gas emissions, and support economic growth, particularly in rural areas. This marks a critical step in India’s transition to a cleaner and more sustainable energy future.