The India flexfuel cars market is estimated to be valued at US$ 611.8 million in 2022 and is expected to exhibit a CAGR of 15% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Flex fuel or flexible fuel vehicles are designed or modified to run on more than one fuel such as gasoline or ethanol. In India, flexfuel cars currently run on gasoline blended with up to 20% of ethanol. Flexfuel cars allow the consumers to opt for cleaner and cheaper fuel as per its market availability. Flex fuel vehicles provide an opportunity for India to reduce its oil import bill and meet climate targets by encouraging use of locally produced ethanol as fuel.

Market Dynamics:
The flexfuel cars market in India is driven by increasing government support to boost ethanol blending in gasoline and growing consumer preference for eco-friendly vehicle options. The Government of India has an ambitious target of achieving 20% ethanol blending in gasoline by 2025 which is expected to significantly increase the demand for flexfuel vehicles in the country. Further, rising environmental concerns have fueled the demand for low carbon emission vehicles. Growing awareness about vehicular pollution and its health hazards has pushed consumers to opt for flex fuel vehicles that provide dual fuel option and reduce dependence on imported oil. However, lack of widespread ethanol pumps across the country remains a key challenge for widespread adoption of flexfuel cars currently.

Segment Analysis
The India flexfuel cars market is dominated by the compact segment which holds around 60% share. Within the compact segment, the hatchback models have been the most popular primarily owing to their affordability and fuel efficiency. Major car manufacturers have launched various hatchback models which can run on more than one fuel like petrol-ethanol blend, allowing consumers to choose fuel based on availability and price.

PEST Analysis
Political: The government has announced several incentives like lower GST and income tax benefits for flexfuel cars to encourage their adoption. This is aimed at reducing oil import dependence and curbing pollution.
Economic: Rising fuel prices and economic growth has increased personal mobility needs. Flexfuel technology allows vehicles to use multiple cheaper fuel options thereby providing relief to customers.
Social: With increasing awareness about environmental protection, customers prefer cars which can run on eco-friendly biofuels. This has boosted demand for flexfuel vehicles.
Technological: Automakers have indigenously developed flexfuel technologies which can detect fuel composition and optimize engine performance accordingly. This has made them affordable and suitable for the mass market segment.

Key Takeaways
India Flexfuel Cars Market Size was valued at US$ 611.8 million in 2023. Strong government support through incentives, growing preference for green mobility solutions and high fuel prices are expected to drive the market growth at a robust CAGR of 15% during the forecast period.

Regional analysis: The southern region led by Karnataka and Tamil Nadu is the largest market for flexfuel cars currently accounting for over 30% share due to policy initiatives for biofuel promotion and availability of sugarcane-based ethanol. The northern states are emerging as high potential markets going forward supported by fuel availability under national biofuel policy.

Key players: Major players like Maruti Suzuki, Hyundai, Tata Motors, Nissan, and Renault have strengthened their flexfuel vehicle lineup in India over the years. Strong branding, expansive sales networks and commitment to alternative fuel technology development will help these companies maintain leadership positions in the upcoming years. New entrants like Mahindra & Mahindra, Toyota, Honda, Ford and Volkswagen are also enhancing their flexible fuel vehicle portfolio, which is anticipated to heighten the competition.
 

Explore More- https://www.newsstatix.com/india-flexfuel-cars-market-value-insights-and-forecast-analysis/