Tata says its first flex-fuel vehicle could be ready by end of 2026

Tata Motors says it could be ready with its first flex-fuel passenger vehicle by the end of 2026 or early 2027, as India moves towards establishing a regulatory framework for higher ethanol-blended fuels. The statement was made by Tata Motors Passenger Vehicles MD and CEO Shailesh Chandra during the company’s Q4 and FY2026 earnings interaction with the media.

“As far as we are concerned, we are very comfortable in terms of technology readiness. By the end of this year or early next year, we should also be ready with our flex-fuel product – at least one product,” Chandra said.

1. Tata says it is ready for higher ethanol blend regulations
2. Punch flex-fuel concept showcased earlier at Auto Expo 2025 with E85 compatibility

Tata says it is ready for higher ethanol blends

Speaking during the media interaction, Chandra said the recent government notification is aimed at creating a category definition for flex-fuel vehicles capable of operating on varying ethanol blends. Chandra also stated that Tata Motors’s vehicles have been E20-compliant since 2023, while discussions on higher ethanol blends are currently taking place with the government through the Society of Indian Automobile Manufacturers (SIAM).

The government recently proposed amendments to the Central Motor Vehicles Rules to formally include fuels with higher ethanol blends, such as E85 and E100. The draft proposal is currently open for public comments.  

Tata Punch flex-fuel: What we know so far

The Punch is likely to become the company’s first flex-fuel passenger vehicle once the government finalises regulations around higher ethanol blends, as per our report citing Tata Motors Passenger Vehicles chief product officer and vice president Mohan Savarkar. 

Tata Motors had earlier showcased a flex-fuel version of the Tata Punch at the Bharat Mobility Global Expo 2025, where the Punch was displayed with four powertrain options – petrol, CNG, electric and flex-fuel.

The flex-fuel Punch used the same 1.2-litre three-cylinder naturally aspirated petrol engine as the standard model, but it featured updates to the ECU, fuel-injection system and exhaust after-treatment system to detect and adapt to varying ethanol blends. The showcased model was compatible with up to E85 fuel, meaning it can run on petrol blended with up to 85 percent ethanol.

The Punch is already sold with petrol, CNG and electric powertrain options, and a flex-fuel version would further expand Tata Motors’s multi-powertrain strategy. Other manufacturers, including Hyundai, Maruti Suzuki and Toyota, have also previously showcased flex-fuel prototypes in India.