The global 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 cars are vehicles equipped with an internal combustion engine designed to run on more than one fuel, usually gasoline blended with ethanol or methanol fuels. They provide advantages such as reduced dependency on crude oil imports and reduced greenhouse gas emissions compared to regular gasoline cars.

Market key trends:

One of the key trends driving the growth of the India flexfuel cars market is the increasing support from the government for promotion of ethanol-blended gasoline. The government has implemented policies like allowing the use of up to 10% ethanol blended with gasoline (E10) across the country. It is also promoting the use of E20-E25 blends in certain regions which is positively impacting the adoption of flexfuel vehicles in the country. The India flexfuel cars market has been witnessing high growth due to the increasing demand for alternative fuel vehicles that can run on more than one type of fuel like petrol/diesel and ethanol blended petrol or methanol. Flexfuel vehicles allow consumers flexibility to choose fuel depending on availability and price. Moreover, the growing awareness about environmental pollution caused by conventional vehicles is prompting consumers to switch to flexfuel cars.

SWOT Analysis

Strength: Flexfuel cars offer savings on fuel costs as ethanol has typically been cheaper than gasoline. They also have less dependence on imported oil and help reduce carbon emissions.

Weakness: Lack of widespread availability of ethanol pumps is a challenge. Flexfuel technology also increases vehicle costs.

Opportunity: Growing focus of the government on promoting ethanol blended petrol and setting targets for ethanol production provides major opportunities.

Threats: Slow expansion of ethanol pumps infrastructure and lack of consumer education about flexfuel vehicles act as threats.

Key Takeaways

The India Flexfuel Cars Market Share is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing focus on reducing oil import dependence and carbon emissions. The market size for 2023 is estimated to be US$ 611.8 Mn.

Regionally, south and west India are expected to dominate the market owing to large availability of sugar crops and sugarcane which helps in ethanol production. States like Karnataka, Maharashtra and Tamil Nadu contributes nearly 50% of ethanol production in the country.

Key players operating in the India flexfuel cars market are Maruti Suzuki, Hyundai, Tata Motors, Nissan, Renault, Mahindra & Mahindra, Toyota, Honda, Ford, Volkswagen. Maruti Suzuki occupies majority market share due to its large range of flexfuel models like Swift, Dzire and Ertiga. Hyundai is also aggressively promoting its Santro, Grand i10 and Aura flexfuel models.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it