Ready to mass produce flex fuel vehicles, two-wheeler makers tell Nitin Gadkari

Two wheeler makers haver assured Transport Minister Nitin Gadkari they are prepared to mass produce flex fuel vehicles and will showcase models at the next Auto Expo in January 2025, CNBC-TV18 reported on August 27, quoting sources.

Representatives of Hero Moto, Honda Motor, TVS Motor and Bajaj Auto have reportedly told Minister Gadkari they are ready to start production of flex fuel two-wheelers, and have also sought a lower cost of fuel for such type of vehicles. This is because such types of vehicles are likely to have a lower fuel efficiency.

The assurance from industry has gone out that the companies are prepared to make vehicles that can run on 85 percent ethanol blend, or even higher. Two-wheeler makers have also sought a clearer roadmap of pan-India rollout of ethanol-blended fuel, it has been reported, and have requested a cut in GST rate on flex-fuel two-wheelers from 28 percent to 18 percent.

On the demand for GST reduction, the heavy industries ministry is in consultation with various stakeholders and other government departments, it has been reported. Automotive body SIAM too has said that a high tax burden can hamper the adoption of environment-friendly two-wheelers powered by CNG and flex fuel. In the past, Bajaj Auto MD Rajiv Bajaj too has said that the Indian automobile industry was suffering from “over regulation”, leading to a dramatic increase in costs.