While the need of the hour for the Government of India was to reduce crude oil import, a whopping 85 percent from other countries, and reduce pollution, does the Ethanol Blended Petrol (EBP) program, having generated tremendous furore, truly augur well for India’s automotive future?

Industry leaders from India’s leading oil companies, automotive industry bodies and OEMs came together on 30 August 2025, to discuss its directives, including the employment of sugarcane farmers.

Setting the tone for the evening, Reji Mathai, Director, ARAI (Automotive Research Association of India) spoke about BS6 and BS6 Phase Two as unique current propositions that prepared the ground for ethanol addition into petrol. He mentioned, “While ARAI is responsible for maximum testing, Society of Indian Automobile Manufacturers (SIAM) and oil companies have also played important parts.”  

2001 was the year when ethanol blends were first done in India. The systematic sequence of ethanol-based blend tests after the above was as follows:

• 2010- Multiple studies done over 10 percent blending
• 2016- BS4 testing was done on 7–8-year-old vehicles
• 2021- A detailed study was done on 8–10-year-old vehicles

Fuel efficiency will go down

Industry speakers confirmed that fuel efficiency from E20 will decrease by 2-5 percent. However, Prashant K Bannerjee, Executive Director, SIAM, averred, “Fuel efficiency is determined by terrain and driving habits, leading to different experiences for different customers. Owing to complex and variable factors, it cannot always be pointed towards the fuel.” Though better octane numbers have now been attained, the energy generated is six percent lesser than pure petrol.

As a country that has successfully adopted EBP, Brazil, with E27 and an overall blend of 45 percent, was quoted numerous times. Milind Pagare, VP (R&D), Bajaj Auto, shared his views on the company’s two-wheelers sold in India and abroad. He said, “We will always provide fuel-related help to our customers whenever necessary. However, I’m sure that there will be no catastrophic engine failures due to EBP.”   

Experiments are necessary for progress

“Experiments will keep happening; otherwise, we can’t go ahead. We will always rely on scientific studies for progress,” said Mathai. Although he could not give a figure when asked about the E20-compliant percentage on Indian roads, he stated that the industry has tested two-wheelers which are 10 years old and four-wheelers between 8-10 years of age for the blend in 2016 and 2021, respectively. Mathai said, “We couldn’t say anything for sure when E20 came in 2021.”

Bannerjee assured that, “OEMs will have no warranty-related changes due to EBP. Whatever is committed to the customer at the time of sale will be honoured fully. Neither warranty nor insurance will be impacted by the above.”

Most attendees were of the opinion that OEMs and oil companies were not providing any clarity about E20-related faults. Ascertaining the need for the above, Bannerjee said, “We need to clearly articulate about the fuel to our customers. This can be done through a series of summary statements that could be press releases or FAQs.” He said that the statements will be released on the SIAM, ARAI, or OEM pages at the earliest.

He further added, “Most OEMS have or are in the process of communicating to dealers that E20 can be used in E10 vehicles without any concern.” In other words, E20 will cause no problems on any vehicles, including the ones that are marked E5-E10. Specific models of the two-wheelers and four-wheelers have been tested BS3 onwards and he mentioned that no vehicle has encountered engine failure due to E20 to date, after testing over 100,000 kilometres. The setting up of an arbitrary testing agency across vintages and makes of vehicles was also mentioned.   

India becomes self-sufficient in ethanol distillation

Anurag Saraogi, Chief General Manager, Bharat Petroleum Corporation (BPCL) expressed contentment at attaining a high level of energy security in India. Backing up the above with figures, he averred, “Eight billion litres of distilleries have come up over the years, and the best part is that these are entirely indigenous.”

Ethanol is prepared from sugarcane, maize and other grains, after which it is mixed with petrol. As UP, Maharashtra and Karnataka are the three major Indian sugarcane states, the oil industry formed long-term agreements with entrepreneurs for country-wide provision. The quantity from sugar molasses has gone up to 3.5-3.7 billion litres today.

Maize is the leading provider of ethanol, contributing 40 percent. Today, maize farming is more viable than ever before, with farmers being recognised as ‘Urjadaatas’ (energy-givers). They’re being offered INR 72 per litre to grow more maize for ethanol and have been paid INR 400 billion in 2025. Payments are being made to the farmers alone.

PS Ravi, Director, Federation of Indian Petroleum Industry (FIPI), said, “In 2014, we achieved a 1.5 percent blend, resulting in 380 million litres of ethanol. While E10 was made available across India in 2019, we have been able to get to 7.5 billion litres by 2025. At this rate, we can safely target procurement and blending of 11-12 billion litres by 2026.” Adding to this, he said, “India is already setting up pilot plants for using high agri residues to prepare the second generation of ethanol.”

Talking about pricing, Ravi said, “The procurement price of ethanol is much more than cost of petrol. Yet, the oil industry is still maintaining a constant price despite Minimum Selling Prices (MSPs) and higher ethanol being derived from feedstock. 

Apart from the above, the industry experts expects India to save INR 1,440 billion in terms of FOREX. As a low-carbon intensity fuel, it will easily achieve net-zero emissions, resulting in a cost-effective pathway for energy transition.

Vikram Gulati, Executive Vice-President, Toyota Kirloskar Motor (TKM), said, “Through its 2070 emission plan and circular economy, India will become the global reference model. Farmers will spend more, contributing to the economy.”

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cellcentric, the joint venture between Daimler Truck and Volvo Group, has officially launched its next-generation fuel cell system, the BZA375. Unveiled at Hannover Messe 2026, the system (previously known as NextGen) is designed as a direct competitor to modern diesel engines in terms of performance, durability and total cost of ownership (TCO).

The BZA375 represents a significant advancement over its predecessor, the BZA150, by moving from a ‘twin-system’ to a powerful single-system design. This evolution has resulted in a 40 percent increase in power density, allowing the unit to fit within engine compartments originally designed for standard 13-litre diesel engines. Despite this compact footprint, the system delivers up to 375 kW of continuous net power – equivalent to more than 500 horsepower – while weighing less than 500 kg. This lightweight construction is critical for heavy-duty operators, as it ensures payload capacities remain comparable to those of traditional diesel-powered trucks.

Efficiency and durability are central to the system's value proposition. The BZA375 achieves a 20 percent reduction in fuel consumption compared to the BZA150, enabling a fully loaded 40-tonne truck to operate on less than 6 kg of hydrogen per 100 kilometres. Engineering refinements have also led to a 40 percent reduction in waste heat (at 300 kW net power) and a 40 percent reduction in overall system complexity by minimising components and interfaces. These improvements do not come at the cost of longevity, as the system is rated for a 25,000-hour service life, matching the 10-year operational expectations of modern diesel engines in long-haul transport.

While the BZA375 is primarily optimised for heavy-duty long-haul trucks, cellcentric is pursuing a ‘one-product strategy’ to apply the system across several demanding sectors to create economies of scale:

• Coaches: Offering long-range zero-emission travel with fast refuelling.
• Stationary Power: Serving as a clean energy source for data centres and industrial sites.
• Rail: Providing an alternative for non-electrified tracks or topographically demanding routes.
• Mining: Delivering high reliability and diesel-equivalent payload capacity for 24x7 operations.

Prototype production has commenced, with units currently available to OEM customers for testing and validation. cellcentric anticipates that larger volumes of mature prototypes will be deployed for initial fleet applications ahead of series production scheduled for the turn of the decade.

Karin Radstrom, President and CEO, Daimler Truck, said, “Two key technologies will lead the way on our path to decarbonise transport: battery-electric and hydrogen. We’ve already taken important steps, and cellcentric’s new fuel cell system is the next major milestone. Building on the success of its predecessor, it represents a new level of efficiency and performance.”

Martin Lundstedt, President and CEO, Volvo Group, said, “With the launch of the BZA375, cellcentric and its partners have created the blueprint for zero-emission long-haul transportation in the heavy-duty segment. This is a game changer for logistics providers and society at large, and it takes us yet another step towards the decarbonization of the industry.”

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Youdha, an electric mobility brand specialising in the three-wheeler segment, has announced its expansion strategy to establish over 200 outlets across India within the next year.

The aim is to capture a larger share of the L5 passenger electric vehicle (EV) market, focusing on both metropolitan areas and Tier-II and Tier-III cities. The expansion follows the launch of the company’s flagship model, the EPOD.

The electric three-wheeler uses a Lithium Iron Phosphate (LFP) battery, designed for urban commuting and fleet operations with an emphasis on durability and low maintenance costs.

The retail rollout expansion will begin in North and East India, specifically targeting Delhi NCR, Uttar Pradesh, Bihar, Jharkhand and Assam, before extending into the southern and western regions.

Each new outlet will offer integrated services including sales, technical support, and financing options. To support this network, Youdha is increasing production capacity at its manufacturing facility and investing in further localisation of components. The strategy aims to address both business-to-business (B2B) fleet requirements and individual ownership.

Ayush Lohia, CEO, Youdha, said, “Our vision is to make Youdha one of the most trusted and accessible EV brands in India. Expanding to 200 outlets is not just about scale – it is about ensuring that customers have reliable access to products, service, and support wherever they are. As demand grows, building a strong on-ground ecosystem becomes critical. This is not just about selling vehicles – it’s about building a complete ecosystem that supports customers throughout their ownership journey.”

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Bengaluru-based electric vehicle company Simple Energy has opened its first Simple Store in Nagpur, marking a further expansion of its retail network in Maharashtra.

Established in partnership with Trinity Automobiles, the facility includes a 700 sqft showroom and a dedicated 1,300 sqft service centre located nearby. The dual launch of retail and service facilities is part of the company's strategy to provide immediate after-sales support to new owners.

The Nagpur outlet displays the manufacturer's full range of electric two-wheelers, including the Simple Ultra, which features an IDC range of 400 km. Also available are the Simple One Gen 2, offering a 265 km range, and the Simple OneS Gen 2, with a 190 km range. Prices in Maharashtra start at INR 164,999 for the OneS Gen 2, reaching INR 234,999 for the flagship Ultra model.

At present, Simple Energy operates approximately 70 outlets across 36 Indian cities, including Bengaluru, Delhi and Hyderabad. The company intends to continue its national expansion with upcoming locations planned for Ranchi and Bhubaneswar. The Nagpur store is equipped to handle customer test rides, accessory sales, and vehicle bookings.

Suhas Rajkumar, Founder & CEO, Simple Energy, said, “We’ve made rapid progress in Maharashtra with recent launches in Nashik and Chhatrapati Sambhaji Maharaj, among others, and our upcoming Nagpur launch is a key step in this expansion. It strengthens our presence in high-potential EV markets and brings the Simple Energy experience closer to customers. With this, we aim to accelerate the shift to electric mobility by offering long-range, dependable and truly worry-free two-wheelers - while moving closer to our goal of making high-performance EVs accessible to more riders.”

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Bengaluru-headquartered Ultraviolette Automotive has launched its second UV Space Station in South Delhi, increasing its retail and service network to 35 cities across India.

The experience centre, established in partnership with Moto Power Mobility, facilitates the sale and servicing of the X-47 Crossover and F77s electric motorcycles. This expansion follows the recent introduction of the company’s ‘Battery Flex’ (BaaS) platform and the UV Crossfade carbon-fibre helmet.

The X-47 Crossover and F77s are equipped with a powertrain delivering 40.2 hp and 100 Nm of torque, enabling acceleration from 0 to 60 kmph in 2.8 seconds. It features a 10.3 kWh battery, the motorcycles provide an IDC range of 323 km on a single charge. The X-47 Crossover also includes a 77 GHz rear radar as standard, supporting the UV HyperSense Advanced Rider Assistance System, which provides blind-spot monitoring, lane change assist and rear collision warnings.

To increase accessibility, Ultraviolette has implemented the Battery Flex ownership model. This allows customers to purchase the X-47 Crossover chassis for INR 149,000, while subscribing to the battery via a monthly fee starting at INR 2,499. The South Delhi facility is designed to manage the entire customer lifecycle, including personalised test rides, sales and technical service.

Narayan Subramaniam, CEO & Co-Founder, Ultraviolette, said, “Delhi has always been at the forefront of change, and the Government’s active push towards electrification to counter the long-term impact of pollution- highlights the city’s commitment towards a sustainable and clean future. The launch of our second experience centre here is a strong reflection of the city’s growing demand for electric vehicles, as well as our commitment to deepening our presence in key markets. We are seeing a clear shift towards customers who value technology, design and safety, and Delhi embodies this evolution. As we continue to scale across India, our focus remains on building a robust, future-ready ecosystem and delivering a seamless, world-class ownership experience.”

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