Expected Price Hike For Flex Fuel Vehicles (E20, E100 Ethanol Blend) | V3Cars

Jan 8, 2023, 09:00 AM IST
By Mahesh Yadav
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In this article, we’ll explain the price increase you can expect for flex fuel cars with E20 and E100 ethanol blend compatibility. These estimations are based on the June 2021 recommendation report by NITI Aayog.

According to the report, to achieve full E100 ethanol compatibility, the production costs of a petrol car will go up by about Rs. 17,000 to Rs. Rs. 25,000. To make a petrol car compatible with E20 flex fuel or 20% ethanol blend, it’ll cost the carmakers Rs. 3,000 to Rs. 5,000 more in the production.

Please note that these are the estimated production costs in making a petrol car compatible with E20 or E100 flex fuel. The research and development costs will further add at least Rs. 1,000 to Rs. 2,000 to these estimates per vehicle. Thus, an E20 flex fuel car could cost Rs. 4,000 to Rs. 6,000 more than a normal petrol car. Meanwhile, an E100 car could cost as much as Rs. 19,000 to Rs. 27,000 more than a petrol car.

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The benefits of running on flex fuel don’t come from the higher fuel efficiency itself. In fact, running on full ethanol or ethanol blend poorly affects the typical mileage figures. However, the source of the raw material for the production of ethanol can greatly reduce the cost of the fuel. Therefore, even with a lower mileage, a flex fuel car could, in theory, cost less to run than a petrol car. On the other hand, according to the same report, in some cases, the then cost of ethanol was higher than that of petrol at the pump. However, it’s possible to contain this cost with large-scale production to achieve economies of scale.

Also Read: Flex Fuel Cars You Can Expect To See At Auto Expo 2023

Maruti Suzuki To Make Entire Range E20 Flex Fuel Complaint By March 2023

The advantages of using flex fuel are:

likely to cost less than petrol
helps reduce dependence on crude oil & provides cushion against oil, currency fluctuations
helps contain foreign cash outflow
produces less greenhouse gas during combustion
uses waste materials for production
creates a new bio-fuel production sector & employment opportunities
relatively easier to adopt by modifying existing petrol engines
uses existing storage, transportation & distribution infrastructure

The disadvantages of a flex fuel vehicle are:

not suitable for current petrol engines
ethanol is more hygroscopic than petrol
doesn’t drastically lower ownership costs

To know more about the pros and cons of flex fuel vehicles, you can visit the following link:

Pros And Cons Of Flex Fuel Vehicles (Ethanol Blend)

Note: Check your car’s fuel cost with Fuel Cost Calculator in India

ABOUT THE AUTHOR

Mahesh Yadav

At V3Cars, Mahesh turns this lens into clear and engaging reports. He uncovers telling details, evaluates cars beyond the obvious and brings fresh angles to automotive conversations so readers learn to appreciate the charm of machines that deserve more attention. Over the years Mahesh has built a keen eye for spotting vehicles that punch above their weight. His appreciation for clever engineering, value-driven design and inventive thinking shapes how he evaluates products and helps him surface stories others miss. Mahesh wears the all-rounder hat at V3Cars, blending writing and motor vehicles — cars as well as motorcycles — into a single passion. He is drawn to compact, quirky and underrated machines that are full of character and a few lovable annoyances. It is no surprise that the Multix, Nano, Comet, Windsor and Navi rank high on his list of favourites.

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