Honda Motorcycle and Scooter India (HMSI) CEO Tsutsumu Otani says flex-fuel vehicle adoption in India hinges on competitive fuel pricing and widespread availability of high-ethanol blends. The discontinuation of Honda's CB300F Flex-Fuel model in May 2026 shows that engineering alone does not drive sales. Consumers need a clear cost-per-kilometer advantage over regular petrol. Hero MotoCorp and Maruti Suzuki are rolling out flex-fuel models, betting on mass-market appeal. The Indian government is supporting this with excise duty exemptions on E22 to E30 petrol blends and limited E85 fuel availability. However, the infrastructure gap remains a major barrier without a nationwide network of high-ethanol pumps. Investors should track the expansion of E85 fuel stations, early demand data from cities like Delhi and Maharashtra, and any changes in pricing parity between ethanol blends and regular petrol. These factors will determine whether flex-fuel vehicles can achieve mass-market adoption in India.
