Honda Motorcycle and Scooter India to launch flex-fuel vehicles in two years

Flex-fuel vehicles have a higher proportion of ethanol in the fuel mix, which helps reduce petrol consumption.

Road transport minister Nitin Gadkari has urged vehicle makers to use green fuels to reduce crude imports and bring down pollution.

The country’s second largest two-wheeler maker is working to introduce a flex-fuel two-wheeler before the end of 2024, Atsushi Ogata, managing director and CEO of HMSI told ET.

“We think internal combustion engine (ICE) vehicles will continue to comprise a significant proportion of two-wheeler sales in the country even after 10 years. The policy measures being undertaken by the government are positive. Biofuel technology is definitely a sustainable solution and can help reduce oil imports,” he added.

The Japanese automaker operates flex-fuel two-wheelers in Brazil and plans a phase-wise implementation and integration of flex-fuel technology in its model range in the country.

“We have over a decade of experience with flex fuel in Brazil, where emission norms are at par with Euro IV levels. India follows a variation of Euro V norms. We are investigating how much ethanol we can blend in India so that fuel efficiency is not impacted. The key point for making the product successful is if consumers can see benefits in it,” Ogata said.

Honda has sold over seven million flex-fuel two-wheelers in Brazil till date.

The decision comes at a time when two-wheeler sales in the local market have declined by nearly a third from a peak of 21 million units in FY19 due to higher costs of ownership.

Acquisition costs of two-wheelers have risen by nearly a third in the past couple of years, while a sharp increase in fuel prices have dented demand for two-wheelers, especially entry-level ones.

HMSI’s sales declined to 3.47 million units in the previous fiscal year, from a record 5.5 million units in FY19.

Last year, Prime Minister Narendra Modi advanced the target to attain 20% ethanol blending in petrol by five years to 2025. Apart from cutting down the country’s fuel bill, increased ethanol blending with fossil fuels will help reduce pollution and strengthen India’s resolve towards fulfilling commitments made at COP-21, the UN Climate Change Conference held in Paris in 2015.

Overall, the government is targeting to achieve half of its installed energy capacity from non-fossil energy sources by 2030.