The country’s second largest two-wheeler manufacturer, Honda Motorcycle and Scooter India (HMSI), has said that differential fuel pricing is among the primary factors that will play a role in development of flex fuel ecosystem.

“Pricing dynamics, fuel availability and overall market conditions are among the factors influencing the development of the flex-fuel ecosystem. Continuous technology development and optimisation are expected to further enhance overall customer value,” Tsutsumu Otani, President and Chief Executive Officer, HMSI, told businessline.

On the recent exemption of excise duty on flex-fuel vehicles, Otani said any potential impact of excise duty changes would depend on how these factors evolve together and how end customers ultimately benefit within the overall ecosystem.

On asked about customers complaining of impact on mileage because of ethanol blended fuel, he said fuel efficiency outcomes may vary depending on ethanol blend levels, vehicle technology and actual driving conditions.

“As a result, cost per kilometer can differ based on fuel prices, usage patterns and operating environments. Compatibility with higher ethanol blends depends on the specific vehicle design and its intended operating parameters,” Otani explained, adding that vehicles engineered for flex-fuel applications are designed and validated accordingly, while others may require appropriate technical adaptation depending on their architecture.

Though the top official at HMSI did not share any timeline of launching a flex-fuel vehicles, but according to sources, the company is expected to launch a flex-fuel two-wheeler next month. HMSI previously (in 2024) had launched CB300F flex-fuel motorcycle, which could run on E85 fuel, but was discontinued later because of the weak demand.

“The transition toward lower-emission mobility is expected to be supported by multiple technology pathways, including advancements in internal combustion engine (ICE) efficiency and the use of alternative fuels. Flex-fuel vehicles represent one of the potential approaches within this broader mobility landscape, alongside other evolving solutions,” Otani added.

Last week, the Finance Ministry issued a series of notifications exempting petrol with an ethanol blend of 22 per cent to 30 per cent from Central Excise Duty. However, the Oil Ministry noted that these higher blends will not be rolled out until extensive testing and stakeholder consultations are complete.

On Saturday, Road Transport and Highways Minister Nitin Gadkari said that he has cleared the regulatory framework for the use of 100 per cent ethanol (E100) as a vehicular fuel, a move that could accelerate the rollout of ethanol-powered cars and two-wheelers.

Earlier this month, Maruti Suzuki India launched the WagonR flex-fuel vehicle, while Hero MotoCorp introduced two motorcycles -- Splendor+ and HF Deluxe that can run on 100 per cent ethanol.

Published on June 14, 2026