by The India FlexFuel Cars Market is estimated to be valued at US$ 611.8 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
FlexFuel vehicles or FlexFuel cars are designed or modified to run on more than one fuel such as gasoline or biofuel or gasoline-ethanol blend. In India, the flexFuel vehicles majorly use gasoline blended with ethanol up to 85% known as E85.Car companies are offering flexFuel variants for models to promote ethanol blending and support government’s initiatives. The major OEMs providing flexFuel cars in India include Maruti Suzuki, Hyundai, Tata Motors, Nissan and Renault.
Market Dynamics:
Favorable government policies: The Government of India has rolled out several schemes and policies to promote ethanol blending with gasoline and adoption of flexFuel vehicles. The policies include allowing higher ethanol blend, subsidy on flexFuel vehicles, mandatory ethanol blending etc driving their sales.
Rising awareness about eco-friendly vehicles: The growing environmental concerns regarding vehicular emissions have boosted the demand of green vehicles including flexFuel cars. The customers are willing to opt for such ethanol run vehicles to minimize pollution rates driving the market growth over the forecast period.
The growing emphasis on green vehicles to minimize pollution is anticipated to openup the new avanue for India FlexFuel Cars Market.
The India FlexFuel Cars Market is estimated to be valued at US$ 611.8 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
FlexFuel vehicles or FlexFuel cars are designed or modified to run on more than one fuel such as gasoline or biofuel or gasoline-ethanol blend. In India, the flexFuel vehicles majorly use gasoline blended with ethanol up to 85% known as E85.Car companies are offering flexFuel variants for models to promote ethanol blending and support government’s initiatives. The major OEMs providing flexFuel cars in India include Maruti Suzuki, Hyundai, Tata Motors, Nissan and Renault.
Market Dynamics:
Favorable government policies: The Government of India has rolled out several schemes and policies to promote ethanol blending with gasoline and adoption of flexFuel vehicles. The policies include
Segment Analysis
The India flexfuel cars market is dominated by the small cars sub-segment. Around 82% of the total flexfuel cars sold in India belong to the small cars category which includes hatchbacks such as Maruti Suzuki Alto, Renault Kwid, etc. The small car segment dominates the flexfuel car market in India since customers prefer affordable yet versatile vehicles that can run on more than one type of fuel. Lower maintenance and running costs of small flexfuel cars also make them a popular choice.
PEST Analysis
Political: The Government of India offers subsidies and tax benefits for customers as well as manufacturers of flex fuel vehicles. This encourages higher adoption of flexfuel technology.
Economic: With rising fuel prices, flexfuel cars that can run on more than one fuel type help save costs for customers. Their growing demand is driven by economic benefits.
Social: Increasing awareness about vehicular pollution and benefits of alternate fuels is positively impacting sale of flexfuel cars that reduce dependency on petrol and diesel.
Technological: Automakers are investing in developing flexible fuel engine technology that allows safe operation of vehicles on varying ethanol-gasoline blends as well as other biofuels.
Key Takeaways
The India Flexfuel Cars Market Share is expected to witness high growth, exhibiting CAGR of 15% over the forecast period of 2023 to 2030, due to increasing preference for versatile and cost-effective mobility solutions. The market size for 2023 is estimated to be US$ 611.8 Mn.
Regional analysis indicates that South India dominates the flexfuel car market in the country. States like Karnataka and Tamil Nadu account for around 45% of total flexfuel vehicle sales due to availability of sugarcane-derived ethanol and supportive government policies.
Key players operating in the India flexfuel cars market are Maruti Suzuki, Hyundai, Tata Motors, Nissan, Renault, Mahindra & Mahindra, Toyota, Honda, Ford, and Volkswagen. Among these, Maruti Suzuki leads the market with a share of over 30%, offering models like Alto, WagonR, and Baleno that run on multiple fuels including gasoline and ethanol blends up to 85%.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
