The Indian government has proposed a draft policy enabling E85 implementation across the country, paving the way for flex fuel vehicles to enter the market. In this conversation with Autocar Professional, Vikram Gulati, Country Head and Executive Vice President, Toyota Kirloskar Motor, breaks down what the draft policy means for consumers, OEMs and India’s energy security.

Gulati explains how the new draft corrects an earlier notification by redefining flex fuel vehicles as those capable of running on blends from E20 up to E85 and beyond, including E100. He clarifies that existing vehicles in the market are aligned for E20 and that E85 will only be used by future flex fuel vehicles, with consumers retaining the choice between E20, E85 or E100 at the pump.

The discussion also covers Toyota’s two-year pilot project with the FFV Innova running on E100, the readiness of Indian OEMs across two-wheeler and four-wheeler segments, and the policy enablers the industry is waiting for — including CAFÉ norms, dispensing infrastructure, pricing differentials between ethanol and E20, and financial incentives for flex fuel vehicle buyers.

Gulati draws on the Brazil parallel, where E27 is the base fuel and the national ethanol use averages 55%, and outlines the economic case for ethanol in India: every $10 rise in crude oil adds $16–18 billion to the forex import bill annually and shaves close to 0.5% off GDP growth. He also addresses concerns around water usage and food security, citing India’s surplus rice and sugarcane production and the role of second generation ethanol in the road ahead.

With Indian car sales at 4.6 million units last year and growing 14% year on year, Gulati makes the case that India’s clean mobility transition needs every technology- battery electric, strong hybrids, plug-in hybrids, CBG and ethanol, working together.

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