India Flexfuel Cars Market Poised For Robust Expansion By 2030
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| Flexfuel Cars Market |
The India Flexfuel Cars Market is estimated to be valued at US$ 611.8 million in 2022 and is expected to exhibit a CAGR of 15% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Flexfuel vehicles, also known as flexible-fuel vehicles, have an internal
combustion engine that can operate on more than one fuel, usually gasoline
blended with either ethanol or methanol fuel. Rising gasoline prices and
government incentives for supporting ethanol blending are driving the growth of
flexfuel cars in India.
Market Dynamics:
Increasing awareness regarding vehicular emissions and initiatives by the
Government of India to promote usage of biofuels are fueling demand for
flexfuel cars in the country. The Indian government has mandated blending of
20% ethanol in gasoline by 2025 which is creating a conducive environment for
auto manufacturers to increase production of flexfuel vehicles. Additionally,
fluctuating fuel prices make flexfuel cars attractive as consumers can opt for
either gasoline or biofuel depending on fuel price volatility. The government
subsidies provided for flexfuel cars also motivate consumers to purchase such
vehicles. These factors are expected to support strong growth in India's
flexfuel cars market over the forecast period.
The Indian flexfuel cars market is witnessing increased demand for dual fuel vehicles that can run on more than one type of fuel. Flexfuel or flexible fuel vehicles have engines that can operate on a mixture of petrol/gasoline and ethanol or methanol. This enables the vehicles to take advantage of locally available fuel options. The rising petrol and CNG prices have led automakers as well as consumers to explore economical fuel alternatives. Further, the push by the government towards promoting electric and ethanol-blended fuel is directing more vehicle manufacturers to add flexfuel options in their existing product lineups.
SWOT Analysis
Strength: Flexfuel vehicles provide the advantage of fuel flexibility allowing users to opt for the most affordable fuel based on availability and price. This reduces dependence on single fuel type.
Weakness: Limited refueling stations for alternative fuels like ethanol restricts the driving range of flexfuel cars. Higher initial costs compared to regular gasoline cars is also a downside.
Opportunity: Growing biofuel production in the country coupled with government support presents an opportunity for automakers to expand flexfuel vehicle portfolio. Strong economic growth is increasing personal vehicle adoption.
Threats: Slow expansion of refueling infrastructure poses a challenge. Established diesel and gasoline vehicles demand also threatens faster EV and flexfuel adoption.
Key Takeaways
India Flexfuel Cars Market Size is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing disposable income and personal vehicle ownership in India.
Regional analysis: The Indian market dominates the South Asia flexfuel cars demand, led by the growing production and blending of bioethanol for transportation sector. States like Maharashtra, Karnataka, Uttar Pradesh and Gujarat account for the major share of flexfuel vehicles sales in India currently.
Key players: Key players operating in the India Flexfuel Cars market are Maruti Suzuki, Hyundai, Tata Motors, Nissan, Renault, Mahindra & Mahindra, Toyota, Honda, Ford, Volkswagen. Maruti Suzuki flexfuel models like Swift, Dzire and Ertiga have witnessed strong demand. Hyundai recently launched Santro with flexfuel technology. Tata Motors is also introducing CNG and ethanol compatible trims of Tiago, Tigor and Nexon steadily expanding its alternate fuel portfolio in India.
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