Amidst India's strong push towards an all-electric vehicle (EV) future, Toyota Kirloskar Motor is advocating for incentivizing hybrid flex-fuel technology powered by ethanol as a cleaner alternative. The Japanese automaker believes the government should consider the benefits of ethanol-based flex-fuel technology, particularly its insulation from geopolitical uncertainties, which are currently impacting EV development.
Toyota's argument centers on the lifecycle emissions of vehicles, rather than just focusing on tailpipe emissions. According to Vikram Gulati, Toyota's country head, hybrid flex-fuel vehicles powered by ethanol are the cleanest when the entire lifecycle is taken into account. He suggests that offering tax relief and emission norm benefits to flex-fuel vehicles could encourage manufacturers to promote these vehicles.
Flex-fuel vehicles have the capability to operate on various blends of ethanol and gasoline, including pure gasoline. India is currently implementing a 20% ethanol blend with petrol to reduce its dependence on crude oil imports. While running a vehicle on 100% ethanol might affect its performance, Gulati argues that an internal combustion engine running on clean fuel is as clean as any other technology, suggesting hydrogen or pure ethanol as viable options.
In October 2022, Toyota launched a flex-fuel pilot project in India, utilizing a vehicle with Flexi-Fuel Strong Hybrid Electric Vehicle Technology (FFV-SHEV). This technology allows vehicles to use fuel containing 20% to 85% ethanol. Data from the pilot project is being shared with the Indian Institute of Science for further study on well-to-wheel carbon emissions of FFV and FFV-SHEV vehicles. The FFV-SHEV technology combines a flex-fuel engine with an electric powertrain, offering the benefits of higher ethanol use and increased fuel efficiency. Toyota has stated that FFV-SHEV technology has the lowest well-to-wheel carbon emissions for any technology in Brazil.
India has set a target to achieve an E20 blend of ethanol by 2025-26, having already achieved a 10% fuel ethanol blend ahead of schedule. The move to E20 is expected to offset the use of 86 million barrels of gasoline, reducing fuel costs and carbon dioxide emissions. Toyota believes that the benefits of E20 use can be increased significantly through the use of FFV-SHEV technology.
The Indian government is promoting electric vehicles (EVs) to reduce CO2 emissions and air pollution. The government aims to have 30% of all vehicles be electric by 2030. The government has launched schemes such as FAME I and FAME II to promote EV adoption and has approved public charging stations across the country. The updated EV policy focuses on domestic manufacturing of EV components and aims to reduce dependency on foreign imports. The government has reduced import duties on electric cars as completely knocked down (CKD) kits, provided companies invest a minimum of $500 million and set up an EV manufacturing plant in India.
The automotive industry is a key contributor to the Indian economy, accounting for 7.1% of India's total GDP. India is expected to be the world's third-largest car market by 2030. The Indian government aims to increase the automotive industry's share to 12% of GDP, creating 65 million jobs and tripling the turnover of the Indian car industry.
While India is striving to become a global leader in EV technology, Toyota is suggesting that the government should also incentivize hybrid flex-fuel technology powered by ethanol as a cleaner fuel alternative.
