Mahindra is gearing up to develop flex-fuel engines as part of its long-term strategy to prepare for the government’s push for higher ethanol blending in petrol. India is targeting a 30 percent ethanol blend (E30) by 2030, and Mahindra wants to ensure its next generation of SUVs is compatible when that transition happens.

1. Mahindra plans to be ready when the Indian government moves to E30
2. Engines need reengineering to run on E30 and higher ethanol blends

Mahindra flex-fuel engine details

E30 fuel requires engines to be upgraded

The company’s new NU_IQ modular platform, which is designed to accommodate multiple powertrain options and body styles, will also serve as the basis for its flex-fuel ambitions. However, building engines that can reliably run on E30 and beyond requires significant reengineering. Flex-fuel powertrains need ethanol content sensors to monitor the real-time mix of ethanol and petrol, along with fuel rail and injector heaters to ensure cold starts in lower temperatures. Mahindra is working on these upgrades, which would eventually allow its engines to run on blends with up to 100 percent ethanol.

Carmakers with flex-fuel plans in India

Maruti, Toyota, Tata and Hyundai have all showcased popular models with flex-fuel engines

The move comes as flex-fuel technology gains traction across the industry. At Auto Expo 2025, major carmakers demonstrated their readiness: Hyundai showcased a Creta 1.0 Flex Fuel, Tata Motors displayed an E85-compatible Punch, and Maruti Suzuki unveiled its Wagon R Flex Fuel prototype. Toyota took a different approach, presenting the Innova Hycross with a petrol-electric hybrid powertrain designed to run on E20 and higher ethanol blends.

For the government, increasing the ethanol content in petrol is a practical way to cut crude oil imports, lower carbon emissions and build a stronger market for domestically produced ethanol. Beyond E30, only flex-fuel vehicles can run on higher blends, which is why automakers are future-proofing themselves for any sudden policy push towards higher ethanol use in the coming decade.