Chennai: As the government mandates moving to E20 fuel (20% ethanol mixed with petrol) by 2025 and moving on to a flexi fuel regime thereafter, the prices of gasoline vehicles will see a sharp increase in price as OEMs introduce nips and tucks in the engine components to make them compatible to E20 and flexi fuels.
According to consultants and industry experts, the ultimate price increase for PVs could be as high as Rs 18,000-25,000, whereas two wheelers will become pricier by up to Rs 12,000. This is because many engine components like pistons, cylinder heads and injectors among others will have to undergo a change to reduce the fuel efficiency loss.
The mark up though will be in phases. “The industry estimates that the cost of E20 compatible passenger vehicles could be higher by Rs 3,000-5,000 and two-wheelers by Rs 1,000-2,000 per vehicle.
