Gadkari says 100% ethanol car due in October could cut fuel-equivalent costs to ₹25/litre

Union minister Nitin Gadkari said a fully ethanol-powered car is slated to launch in October and claimed its running cost could be equivalent to petrol at about ₹25 per litre. He also defended ethanol blending as a measure to support farmer incomes.

— Source publishedSun, 27 Sept, 2026, 16:02 IST·First seen Sun, 27 Sept, 2026, 16:07 IST·Source ET Auto Retail

What happened

Government of India · Union minister Nitin Gadkari said a fully ethanol-powered car will launch in October, claiming its operating cost could equal petrol

Key facts

  • 100% ethanol
  • ₹25 per litre

Why this matters

Automakers, fuel retailers and agri-processing companies should assess partnerships around flex-fuel vehicles, ethanol supply and forecourt infrastructure as policy support seeks to scale the ethanol ecosystem.

What to watch

  • Official confirmation of launch date, OEM, certified fuel-economy data, warranty terms, and retail vehicle price.
  • Announcement of a national or state E100 dispensing standard and the number/location of initial retail outlets.
  • Ethanol procurement-price revisions and evidence that supply can cover both E20 blending and incremental E100 demand.
  • Reported E100 retail price versus petrol, adjusted for real-world kilometres per litre.
  • New capex orders for ethanol-compatible pumps, underground tanks, seals, dispensing equipment, and tanker logistics.
  • State incentives for flex-fuel/E100 vehicles, fleet mandates, or preferential registration and road-tax treatment.
  • Track whether the October launch is a production vehicle, a demonstration, or a limited pilot, including announced OEM, model volume, and state-level availability.
  • Monitor Indian Oil, Bharat Petroleum, Hindustan Petroleum, and private fuel retailers for E100 pump tenders, station conversion plans, and dedicated-storage investments.
  • Assess ethanol supply headroom after E20 blending commitments, including sugarcane output, grain-based ethanol capacity, feedstock diversion rules, and water-related restrictions.
  • Watch for excise, GST, state VAT, ethanol pricing, and fuel-economy labeling decisions that determine the real operating-cost advantage.
  • Retailers with highway forecourts should map stations near likely pilot markets for phased E100 readiness rather than systemwide conversion.