Ethanol, Biogas can Accelerate India’s Clean Mobility Transition, says Maruti Suzuki’s Tarun Aggarwal

Amid a strong push for electric vehicles, ethanol blending and biogas offer India the fastest and most cost-effective pathway to decarbonise mobility while expanding access to personal transport, Tarun Aggarwal, senior executive officer at Maruti Suzuki India, said, arguing that a multi-pathway approach is critical for the country’s journey to net-zero emissions by 2070.

Speaking at SIAT 2026 in Pune, Aggarwal noted that India’s mobility challenge is fundamentally different from that of developed economies, and that factors such as affordability, scale, and energy security will determine the path the country can realistically take.

According to his presentation, India’s transport sector accounts for about 10 percent of total national greenhouse gas emissions, with passenger cars and two-wheelers contributing just over 4.5 percent, significantly lower than in most developed markets.

Aggarwal stressed that while electric vehicles will play a “growing role”, biofuels such as ethanol and compressed biogas (CBG) are essential to deliver immediate emissions reductions across a much larger vehicle parc. “India needs clean mobility solutions that work at scale today, not only in the future,” Aggarwal said, noting that personal mobility demand will rise sharply as incomes grow and access expands to the next billion Indians.

With the growing economy, India’s personal mobility has grown by 1.4 times over the last 15 years, while GDP per capita has expanded by 1.7 times, clearly underlining the close link between economic growth and mobility demand.

At the same time, access remains limited. According to the presentation, 42 percent of India’s population still lacks access to a two-wheeler, while 91 percent lack access to a four-wheeler, highlighting the scale of affordable personal mobility that remains unaddressed.

Biogas: Using existing vehicles and infrastructure

On biogas, Aggarwal underlined India’s position as the world’s largest CNG vehicle market, with over 5 million CNG vehicles on the road and nearly 8,500 refuelling stations nationwide.

India adds nearly 1 million new CNG vehicles each year, supported by a vast network that is expected to double over the next five years.

Converting agricultural residue, cattle waste, and municipal waste into CBG could significantly lower emissions without requiring new vehicle technologies. “CBG can be used directly in existing CNG vehicles, delivering immediate greenhouse gas reductions,” Aggarwal said, noting that planned investments could take biogas production to around 4 million units annually within three to four years.

Blending just 10 percent CBG with CNG can reduce lifetime emissions by around 71 percent, while 30 percent CBG can deliver emissions reductions exceeding 150 percent on a net accounting basis.

At full scale, the impact is even larger. One hundred percent CBG has the potential to deliver over ten times (1,000 percent plus) emissions reduction due to its carbon-negative characteristics, as it utilises waste streams that would otherwise emit methane. India’s large agricultural base and cattle population give it a unique advantage in biogas production, Aggarwal said, adding that scaling CBG would also address waste management challenges while creating rural employment.

Ethanol: Fastest emissions gains at scale

Aggarwal lauded India’s rapid progress in ethanol blending, pointing out that the country reached E20 blending in under a decade, the fastest globally. Compared with a pure petrol vehicle (E0), E20 reduces greenhouse gas emissions by around 16 percent, while E30 cuts emissions by about 23 percent.

Flex-fuel vehicles running on E85 can cut lifetime emissions by about 64 percent, while FFV hybrids using E85 can deliver up to 68 percent emissions reduction, the presentation noted.

“With India being the world’s second-largest producer of sugarcane, ethanol leverages a domestic resource base and strengthens energy security,” Aggarwal said, adding that wider adoption will require clear pricing signals for higher ethanol blends and faster rollout of flexible-fuel vehicle standards.

India’s ethanol use in transport has the potential to scale nearly ten-fold by 2035, from around 10 billion litres today to about 30 billion litres, subject to supportive policy and pricing, he said.

Clean-for-life, not tailpipe-only

Aggarwal emphasised that India should evaluate mobility solutions on full lifecycle emissions, including energy production, vehicle manufacturing, and recycling, rather than focusing only on tailpipe emissions.

“Electric vehicles are already significantly cleaner than petrol vehicles in India despite today’s coal-heavy power mix, but decarbonising electricity will take time,” he said. EVs in India are already around 36 percent cleaner over their lifetimes than petrol-powered vehicles, even with the current grid mix.

India’s grid currently averages around 700 grams of CO₂ per kWh, more than double Europe’s levels, which limits the near-term emissions benefit of electrification.

“Until then, ethanol and biogas allow India to reduce emissions while supporting affordability and resilience,” Aggarwal said.

Multi-pathway strategy key to net zero

Citing recent global disruptions and supply-chain volatility, Aggarwal said India must avoid dependence on a single technology or energy source. Modelling indicates that a pure EV-only strategy risks missing India’s 2070 net-zero target if grid decarbonisation is delayed by even a decade.

A multi-pathway approach combining EVs, ethanol, biogas, and hybrids would allow India to balance growth with sustainability and potentially reach carbon neutrality earlier than planned.

Simulations show that a combined path with around 80 percent electrification and 20 percent biofuels can enable India to achieve carbon neutrality as early as 2047, even with moderate grid clean-up progress.

“What India does over the next two decades will define mobility for the next century,” Aggarwal said. “Leveraging local resources through multiple clean energy pathways is the most realistic way to build mobility that is affordable, resilient, and clean for life.”