Auto Expo 2025: Tata Punch Flex Fuel E100 Ethanol Showcased | V3Cars

20 January 2025
By Mahesh Yadav
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At the 2025 Mobility Expo, Tata Motors brought back the old diesel Sierra. Unlike the flex fuel cars from Japanese carmakers like the Toyota Prius flex fuel plug-in hybrid or the WagonR Flex Fuel, which only claim to support up to 85% ethanol mix the Punch Flex Fuel can run even on 100% ethanol.

Mobility Expo 2025: Tata Punch Flex Fuel E100 Showcased

Why Is Punch Flex Fuel?

In the world of bureaucracy, this is what is called quid pro quo. In plain English: You scratch my back, I'll scratch yours. The government wants to maximise tax collection and the car manufacturers want to be on the government’s good side. The production of ethanol from local raw materials such as grains and sugarcane improves domestic employment. This in turn helps with votes in subsequent elections and their income further increases tax collection.

The raw material feeds into factories, which are most likely run by friends and families of those in power. The government, in exchange, gets to sell cheap ethanol at prices comparable with imported petrol and pocket large chunks of the difference.

For carmakers, what’s the benefit of having a good relationship with government officials? They get regulations, which help them increase their sales. If they happen to have a really good relationship, then the policies may even support the powertrains that the car manufacturer are working on.

Showing Flex Fuel vehicles at the Expo is a signal to the government that we will bring the car. You take care of the fuel distribution. And the government needs to make sure the product is profitable for the carmaker.

For instance, Maruti Suzuki’s strong relationship with the central government possibly helped them stay ahead of the curve with knowledge that the number of CNG stations was going to increase drastically in India. Maruti’s monopoly in CNG car sales is a clear indication of how important it is to nurture this relationship. So, the easy way out is to just see what Maruti Suzuki are doing and do the same thing. That’s the story behind Punch Flex Fuel.

Also Read: Auto Expo 2025: Tata Avinya X Concept Showcased With Updated Design

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