Union Road Transport and Highways Minister Nitin Gadkari has made a major announcement. In a recent conference, the minister said that he has already signed the file for 100% Ethanol, He also said that several automakers will launch E100 (100%Ethanol) compatible cars in the next few months.
The Union Minister was speaking at Sugar, Ethanol & Bio-Energy India Conference 2026 by Chini Mandi in Nagpur on Sunday (June 14, 2026), when he made this statement. He said that the government has decided to use 100% Ethanol as an alternative to petrol. He then said that the previous night, at around 8 pm, he signed the circular specifying standards for 100% Ethanol for use as fuel in automobiles.
He further added that out of the five E100-compatible motorcycles on sale currently, three are from Hero. Then, the minister talked about E100-capable cars. Maruti Suzuki recently showcased the flex-fuel version of the Wagon-R. The carmaker hasn’t announced its prices though.
The minister added that 12 more companies will launch flex-fuel vehicles in the next couple of months. Tata Motors, Mahindra, Hyundai, Toyota, will all, according to him, will launch flex-fuel models.
He also talks about the flex-fuel version of Toyota Hycross that he has been using for a while. He reiterates how Ethanol is the perfect import substitute, cost-effective, pollution-free and indigenous. He also says that Ethanol factories can set up bunks and sell directly to customers.
India achieved its 20% Ethanol-blending target (E20 program) in March 2025- five years ahead of the original 2030 deadline. The E20 rollout was completed by April 2026.
Vehicles built from April 2023 are said to feature E20 compliant materials in parts of their fuel system and powertrain. However, vehicles sold from April 2025 are said to be fully E20-compliant- calibrated for use with 20% Ethanol-blended fuel.
The E20 program, according to reports, has helped in reducing crude oil imports and has brought about significant forex savings. According to the government, the program has helped save over 1 lakh crore rupees in crude imports. Additionally, since Ethanol is produced from farm surplus, the program has also generated around Rs 80,000 crore in income for farmers.
The Maruti Suzuki WagonR has become the first mass-market car in India. The WagonR already has a solid footprint in India. It will help popularise flex fuel technology.
In June this year, E85 petrol (a blend 85% Ethanol and 15% petrol) was rolled out. It now has a price of Rs 82.12 per litre, in Delhi. That’s Rs 20 less than a litre of normal (E20) petrol. E85 petrol has environmental benefits as well. It has lower carbon emissions than E20 petrol. It also has an edge as it is a renewable fuel.
The disadvantage is that higher blends of Ethanol will lead to a drop in fuel efficiency. This is because Ethanol has a lower energy density than pure petrol. This could lead to higher fuel bills in the long run. That said, E85 petrol cannot be used in regular petrol engines. Engines require significant modifications and ECUs need to be re-calibrated for E85-compatibility.