Ethanol unlikely to impact two-wheeler mileage as OEMs improve efficiency, says Hero MotoCorp

Alternative fuels, including ethanol, are unlikely to impact two-wheeler fuel economy, as auto OEMs are improving efficiency to offset the lower calorific value of ethanol, believes Hero MotoCorp. The biggest two-wheeler manufacturer's comment comes at a time when ethanol is making headlines across the country. Many motorists have claimed that their vehicles, especially the older ones, are witnessing a significant drop in fuel economy, as well as increased wear and tear, owing to ethanol. However, the government and automakers have maintained that ethanol is safe for vehicles.

Ashutosh Varma, Chief Business Officer-India, Hero MotoCorp, has welcomed the government's ethanol blending program, calling it an excellent initiative towards achieving energy independence. ANI has quoted Verma saying that there have been no incidents whatsoever of higher damage being reported. Expressing confidence over the alternative fuels, he reportedly said, "We are confident that there are new avenues, alternate energies, alternate fuels being developed that should shape the industry. Ethanol has a lower calorific value. So, to that extent, there is a certain dip in mileage that comes in."

Varma also highlighted that Indian original equipment manufacturers (OEMs) have improved product efficiency through technologies like idle stop-start systems and low-rolling-resistance tyres, helping bridge the gap in fuel economy. "So, honestly, not a concern that seems to be spoken all across," he added while speaking about ethanol.

Demand fluctuations a major challenge

The Hero MotoCorp official highlighted demand fluctuations as a big challenge for the two-wheeler industry in India. Varma said that repeated disruptions, including the Covid 19 pandemic, have made it difficult to predict demand trends over the past 4-5 years. "The outlook for the industry has been promising over the past year and in 2026. On this backdrop, having a pulse on how the market would move, make investments accordingly, and be future-ready, I guess that's a big area," he said.

He further identified digitisation and the industry's readiness to adapt to the evolving digital ecosystem as another major disruption facing the sector. However, he remained optimistic, describing the challenge as an opportunity and saying the industry was entering exciting times.

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