Indian auto makers warn industry not ready for E10, say government has to establish stable policy immediately

In India, auto manufacturers warn that they are not ready for the transition to E10. The head of R&D at Maruti Suzuki said that their vehicles are E5 compatible but will need minor adjustments. Hyundai Motor India said none of their cars are E10-compatible, and said they needed the government to allow a transition period to make engine changes. The Society of Indian Automobile Manufacturers said that they did not oppose ethanol blending, but wanted a uniform, stable policy throughout the country.

Continuing news flow from India suggests that the country is struggling mightily to prepare itself for E10 even as it struggles with the prospect of $100 oil. Earlier this month, the Additional Secretary, Ministry of Petroleum and Natural Gas projected that $90 oil would lead to a trade deficit of $26 billion.

But earlier this month, the South Indian Sugar Mills Association said that of 180 sugar mills who belonged to the association, only 18-20 have the capability at this time to produce ethanol. The association’s chief told the Hindu Business Line that “The cooperative sector is beset with financial crunch to upgrade their facilities in order to produce ethanol.”

The industry is struggling to establish an ethanol capacity to reduce India’s massive 12 million ton excess capacity of sugar.

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