India Drives Towards Ethanol


India is planning to introduce cutting-edge vehicles powered by ethanol. How will it be a game-changer in the automobile space?

Ethanol as a vehicle fuel is gaining global attention for its positive environmental and energy security impact. With countries seeking alternatives to traditional fossil fuels, biofuels derived from renewable resources like ethanol, sugarcane, corn, and other plants offer numerous advantages.

India actively promotes ethanol as a fuel in line with this global trend. Let’s learn more about its benefits and why India follows this trend.

What’s Happening?

During a recent program in Nagpur, Road Transport and Highways Minister Nitin Gadkari announced India’s rapid shift towards manufacturing vehicles that exclusively run on ethanol. Emphasising this commitment, he revealed that new vehicles powered entirely by ethanol would soon be introduced in the country. Also, leading two-wheeler manufacturers like Bajaj, TVS, and Hero have already embraced this transition. They are ensuring their scooters will operate solely on 100% ethanol.

Apart from this, he also shared plans to launch Toyota’s Camry car in August. This car can run on 100% ethanol. In addition to its eco-friendly fuel source, this innovative vehicle is expected to generate a remarkable 40% of its electricity needs. 

Ethanol Production in India

Ethanol is a type of alcohol derived from the fermentation of sugar and starch. It holds tremendous potential as a renewable fuel source. In India, ethanol production has been steadily increasing, with approximately 29 lakh tonnes produced in the year 2020-21, according to ABP Live. Despite this progress, India still has a considerable distance to cover in terms of ethanol production.

Talking about ethanol production in the world, according to the report of Statista, in the year 2022, America ranked first with 15,400 million gallons of ethanol production. Brazil followed it with a production of 7,420 million gallons. The European Union stood third with a production of 1,330 million gallons, while India produced 1,090 million gallons.

Importance of Using Ethanol Fuel

As ethanol is a clean and renewable fuel, it has the potential to address several issues in India, like reducing carbon emissions and mitigating air pollution. Embracing ethanol as an energy source will enhance India’s energy security and facilitate the modernisation of the country’s energy sector.

India’s heavy reliance on imported petrol and diesel can be reduced through the increased use of ethanol. This shift will help reduce dependence on foreign countries for fuel supply. Additionally, ethanol can stimulate agricultural production, providing farmers with an additional income stream.

The production and adoption of ethanol fuels will unlock new business opportunities and generate employment in the automobile sector. 

Automobile Growth Like Never Before

In terms of pricing, Union Minister Nitin Gadkari highlighted the affordability of ethanol fuel compared to petrol in the upcoming Carmy car. He stated that ethanol costs Rs 60 per litre, while petrol costs Rs 120 per litre. It will also generate 40% electricity, so on average ethanol will cost Rs 15 per litre. This affordability factor makes ethanol an attractive choice for consumers seeking economical fuel options.

Additionally, Minister Gadkari emphasised the broader impact of ethanol adoption on the automobile industry in India. With a market value of Rs 7.50 lakh crore and employing approximately 4.5 crore individuals, the automobile industry holds significant economic importance. India’s attractiveness as a manufacturing hub is evident, with global automobile brands flocking to the country. The industry also contributes substantially to government revenue through GST payments. The target is to double the size of the industry to Rs 15 lakh crore in the next five years.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

*The companies mentioned are for information purposes only. This is not an investment advice.


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