July 18, 2024
Flexfuel Cars Market

India Flexfuel Cars Market is Estimated To Witness High Growth Owing To Growing Consumer Preference Towards Fuel Efficient Vehicles

The India Flexfuel Cars Market is estimated to be valued at US$ 611.8 million in 2023 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:
Flex fuel vehicles or flexfuel vehicles refers to vehicles that can be powered by more than one type of fuel like petrol/gasoline and ethanol blended fuel. These vehicles allows the use of fuel blends from pure gasoline to pure ethanol (E100). Flex fuel vehicles offer advantages like fuel efficiency, reduced carbon emissions and dependence on imported gasoline. With rising fuel prices and environmental concerns, flexfuel vehicles are becoming popular alternative.

Market key trends:

Flexfuel vehicles are gaining popularity in India owing to growing preference of consumers towards fuel efficient and environment friendly vehicles. India government is also supporting adoption of alternate fuels like ethanol to reduce dependence on crude oil imports. As per data, share of flexfuel vehicles in new car sales increased from 1.5% in 2020 to over 4% in 2022. Major car manufacturers like Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra etc. are now offering various flexfuel car models to cater growing demand. Flexfuel technology allows vehicles to optimally use cheaper ethanol blended petrol which helps save on fuel costs. This trend is expected to further propel flexfuel cars market in India during forecast period.

Porter’s Analysis

Threat of new entrants: Low capital requirement for manufacturing flexfuel cars and growing Indian automobile industry attracts new companies to enter in the market. However, well established players and need for developing brand loyalty creates barriers.

Bargaining power of buyers: Buyers havehigh bargaining power due to availability of various alternatives. They can opt for normal petrol/diesel cars or electric vehicles.

Bargaining power of suppliers: Major car manufacturers have control over suppliers and source critical automotive components from few specialized suppliers globally. This gives them bargaining power.

Threat of new substitutes: Electric vehicles are emerging as strong substitute but high cost and lack of charginginfrastructure limits their demand currently.

Competitive rivalry: Intense as key players continuously focus on expanding flexfuel car portfolio and build competitive edge through technology, pricing and branding.

SWOT Analysis

Strengths: Growing awareness about environmental benefits. Support from Government schemes and policies.

Weaknesses: High manufacturing cost. Limited fuelling stations restricts use.

Opportunities: Expanding middle class and rising disposable income will boost demand. Government push for Flexfuel vehicles under Atmanirbhar mission.

Threats: Slow infrastructure growth poses challenge. Stiff competition from electric vehicles segment.

Key Takeaways

India Flexfuel Cars Market Size is expected to witness high growth at a CAGR of 15% over the forecast period due to rising environmental concerns and government push for sustainable mobility. The market size is projected to reach US$ 1,936.8 million by 2030 from US$ 611.8 million in 2023.

Regional analysis: North and West regions dominate India’s Flexfuel Cars market currently due to presence of major automobile manufacturing hubs and consumer base. East and South regions are fastest growing markets with increasing demand for personal vehicles and flexfuel infrastructure development.

Key players operating in the India Flexfuel Cars market are Maruti Suzuki, Hyundai, Tata Motors, Nissan, Renault, Mahindra & Mahindra, Toyota, Honda, Ford, Volkswagen. Major players focus on expanding flexfuel vehicle portfolio with technology improvements for improved performance and fuel efficiency to gain market share.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it