According to consultants and industry experts, the introduction of ethanol blended fuel ie flex fuel may increase the price of vehicles. He says that vehicles running on E20 or flex fuel are of different types of engines. With the introduction of flex fuel, auto companies will have to change the engines of their existing vehicles, which can increase the price of vehicles.
Flex engine vehicle will cost more
According to experts, the prices of passenger vehicles (cars) with flex engines could be higher by Rs 18,000 to Rs 25,000. At the same time, the price of bikes and scooters with flex engine has been estimated to be higher by Rs 10,000 to Rs 12,000. Automakers say that the mileage per liter of flex fuel vehicles can be as low as 6-7% as compared to normal petrol vehicles.
However, the government says that flex fuel will cost less than petrol and will reduce the fuel cost burden on customers. At present, the GST rate on flex fuel has been reduced from 18% to 5%. At the same time, an excise duty of 25% to 28% is levied on petrol.
What is Flex Engine?
Flex engine vehicles can run entirely on ethanol or flex fuel. Due to running on ethanol, such vehicles reduce the emission of harmful chemicals and are also less harmful to the environment. The central government is preparing a flex-fuel engine policy which is likely to be introduced soon. After the implementation of this policy, it will be mandatory for automobile companies in the country to manufacture flex-engine vehicles.
According to an estimate, ethanol business of more than Rs 1 lakh crore can be done in India every year from Flex Fuel. The use of ethanol will reduce the import of petrol and save crores of rupees in revenue. Apart from this, the use of ethanol blended flex fuel will also reduce vehicular pollution.
Honda introduced flex engine bike
Honda Two-Wheeler India recently introduced its first flex engine bike which is fully ethanol-powered. The company is planning to launch two such flex engine bikes in India. Honda is already selling flex fuel bikes in the global market. Honda launched the CG 150 Titan motorcycle in the global market. It was the world’s first flex engine bike which was launched in 2009 in Brazil. This bike could run only on petrol or ethanol and also could run on a mixture of both.
Honda Motorcycles is the second company in the country to introduce a flex engine motorcycle. Earlier TVS Motor has launched its Apache RTR 200 FI bike in flex engine.