by Flexfuel cars or flexible fuel vehicles are cars that can operate on more than one type of fuel. They are often capable of running on either gasoline (petrol) or ethanol, or mixtures of both flexibly. This allows drivers and automobile manufacturers more independence from single fuel type infrastructures and price fluctuations in the fuel markets. Flexfuel cars offer drivers choice and flexibility in selecting fuels that suit their needs and budgets the best. 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 key trends
One of the key drivers for the India flexfuel cars market is the rising fuel prices in the country. Gasoline and diesel prices in India have witnessed a consistent upward trend over the past few years mainly due to rising crude oil prices in the international markets and increases in domestic taxes. This has significantly strained household budgets and pushed up operating costs for fleet owners. Flexible fuel cars allow drivers to opt for cheaper ethanol blends when fuel prices are high, thus providing protection against price volatility and inflation. The ability of flexfuel vehicles to operate on renewable biofuel alternatives is attractive to both consumers and the government.
SWOT Analysis
Strength: India is the fourth largest producer and consumer of crude oil in the world. Flexfuel cars offer lower emission and higher fuel efficiency compared to petrol counterparts.
Weakness: Lack of ethanol supply infrastructure in the country. Flexfuel vehicles come at a higher initial cost compared to normal petrol vehicles.
Opportunity: Increased focus of the government to promote ethanol blending with petrol. Growing awareness about the benefits of using biofuels can boost the demand for flexfuel vehicles.
Threats: Resistance from conventional vehicle manufacturers to transition to flexfuel technology. Slow expansion of ethanol distribution network poses challenge to widespread adoption of flexfuel vehicles.
Key Takeaways
The global India Flexfuel Cars Market Demand is expected to witness high growth. Northern and central parts of India are emerging as the fastest growing region for flexfuel cars due to easy availability of ethanol in these areas. States like Uttar Pradesh, Bihar and Madhya Pradesh are expected to dominate the flexfuel vehicle sales in coming years.
Key players operating in the India Flexfuel Cars Market are Maruti Suzuki, Hyundai, Tata Motors, Nissan, Renault, Mahindra & Mahindra, Toyota, Honda, Ford, Volkswagen. Major car manufacturers are launching flexible fuel variants of their popular models to capitalize on the growing demand. For instance, Maruti Suzuki recently launched Ertiga and XL6 with flexfuel technology.
The flexfuel car sales are projected to increase exponentially during the forecast period led by supportive government policies. Aggressive ethanol blending targets and rising fuel costs will drive more customers to opt for dual-fuel technology vehicles. OEMs haveStarted focusing resources on ramping up flex-fuel vehicle production to tap into this high-growth market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
