Government policies needed to make bioethanol fuel more affordable for wider adoption in India: Honda

New Delhi, Jan 21 (PTI) Honda Motor Company said India is well placed to achieve carbon neutrality through bioethanol and renewable energy electrification, but the government needs to put in place a mechanism to make bioethanol fuel more affordable so that User Economically Viable Co., Ltd. chief engineer Hiroya Ueda said on Tuesday.

Speaking at automotive industry body SIAM’s 3rd International Eco-Energy for Mobility Symposium, Ueda said ethanol has advantages over existing fuels in reducing carbon emissions, but has higher running costs due to low fuel efficiency.

He said the running cost of fuel would be an issue and few initiatives could be taken to increase the use of bioethanol. “The government should put in place a mechanism to make fuel pricing more affordable and maintain economic viability for users through its policies,” he said. .

In the meantime, he said automakers should continue to take steps to improve fuel efficiency.

“For ethanol fuel to remain economically viable, the fuel cost per kilometer must remain the same as or lower than that of gasoline vehicles. To achieve this goal, initiatives including reducing taxes on ethanol should be considered,” Ueda said.

He further said, “One approach might be to increase the price of E100 (ethanol 100) from $95 to $65 yuan per liter is just to reduce vehicle operating costs. ”

At the same time, he added, “OEMs will also need to improve vehicle mileage to achieve this goal.” Ueda also pointed out that promoting ethanol fuel will have a beneficial impact on farmers in India, where agriculture is prevalent and the majority of the population lives in rural areas.

He said it was important to keep in mind the socio-economic development of rural communities.

“Since ethanol can be supplied through existing gas stations, supply does not seem to be an issue,” Ueda said, adding that infrastructure for compressed natural gas was gaining momentum but expansion would be gradual.

He asserted that in terms of environmental benefits, ethanol has advantages, “In the long term, India’s commitment to carbon neutrality will require flex-fuel vehicles and electric vehicles.

Increased ethanol concentration results in lower fuel economy, and if ethanol prices remain the same as gasoline, customers will have to bear higher running costs.

He believes ethanol has advantages over other existing fuels in reducing carbon emissions, saying, “It is important to further promote the use of bioethanol fuel.”

On electrification, he said that with the adoption of renewable energy sources in the near future, electricity will become greener, so it will also be important for OEMs to commit to offering electric vehicles.

Regarding Honda’s bioethanol plans in India, he said that drawing on the company’s experience in Brazil, the company has launched CBF300 Flex Fuel in the country.