Tata Motors Passenger Vehicles Ltd is preparing to launch its first flex-fuel passenger vehicle by the end of this calendar year or early next year, as India moves to create a regulatory framework for higher ethanol-blended fuels.
Shailesh Chandra, Managing Director and Chief Executive Officer, Tata Motors Passenger Vehicles Ltd, said the recent government notification is aimed at creating a category definition for flex-fuel vehicles that can operate on different levels of ethanol blends.
“As far as we are concerned, we are very comfortable in terms of technology readiness. By the end of this year or early next year, we should be ready with our flex-fuel (product) also, at least one product,” Chandra said during a media call held to discuss the company’s Q4 and FY26 performance.
He added that Tata Motors vehicles have already been E20 compliant since 2023. Discussions with the government on higher ethanol blends are underway through the Society of Indian Automobile Manufacturers, he said.
Flex-Fuel Punch?
Tata Motors had showcased flex-fuel technology at the Bharat Mobility Global Expo 2025 as part of its wider green mobility display, which included electric, hydrogen, natural gas and flex-fuel technologies.
The automaker had showcased the Punch flex-fuel at Auto Expo 2025. It used the same 1.2-litre, three-cylinder naturally aspirated engine as the regular Punch, but with changes to the ECU, fuel-injection system and exhaust after-treatment system to detect and adjust to different ethanol blends.
The Punch is already sold with multiple powertrain options, including petrol, CNG and electric. A flex-fuel version would add another option to Tata Motors’ multi-powertrain strategy.
Tata Motors has been widening its passenger vehicle portfolio across SUVs, electric vehicles, CNG and petrol powertrains. In FY26, the company said its powertrain mix stood at 46% petrol, 13% diesel, 14% EV and 27% CNG. Its EV volumes rose 43% year-on-year to 92,200 units, while CNG volumes crossed 1.7 lakh units during the year. The company has also expanded its SUV portfolio with products such as Nexon, Punch, Harrier, Safari, Curvv, Sierra, Harrier.ev and Punch.ev.
Chandra said the company does not plan to slow or change its long-term product roadmap despite geopolitical uncertainty. “There is no question of changing the long-term product plan. We remain optimistic,” he said.
Ethanol Push Gathers Pace
The flex-fuel plan comes at a time when India is stepping up its ethanol blending programme to reduce dependence on imported crude oil and lower emissions.
The government had advanced the target of 20% ethanol blending in petrol to Ethanol Supply Year 2025-26 from 2030. Petroleum Minister Hardeep Singh Puri said ethanol blending had helped save about ₹1.36 lakh crore in foreign exchange by reducing dependence on imported crude oil. More recently, India proposed amendments to the Central Motor Vehicles Rules to formally include higher ethanol-blended fuels, including E85 and E100. The draft has been opened for public comments before a final decision is taken.
The policy push has gained relevance as the West Asia crisis raises concerns around crude supply and fuel prices. The wars linked to Iran and Ukraine have knocked out nearly 9% of global oil refining capacity in recent months, deepening a fuel supply crunch. Brent crude had touched $126 a barrel in April, while diesel and jet fuel prices also rose sharply.
Chandra said any rise in petrol or diesel prices could change powertrain preferences in the Indian market. EVs and CNG could benefit if fuel prices rise sharply, though entry-level vehicle demand may see some pressure. He added that demand has remained strong so far, with April and May continuing the momentum seen after GST 2.0.
Looking ahead, Chandra expects the passenger vehicle industry to grow around 10% in FY27, with Tata Motors aiming to grow faster than the industry on the back of new launches, additional volumes from recent products, EV demand and capacity expansion.