New Delhi, July 20 -- Back-to-back government decisions prioritizing electric mobility have cast a shadow over flex-fuel technology, fuelling concerns among automobile and biofuel makers that policy uncertainty could slow investment and wider adoption of the technology. On 3 June, top ministers attended the commercial launch of Hero MotoCorp's flex-fuel motorcycle in Delhi, boosting sentiment for the technology's adoption. A day later, India's largest carmaker Maruti Suzuki also launched its flex-fuel WagonR. Within three weeks, the Delhi government mandated that it would allow only electric two-wheelers from April 2028, with a likely similar call for four-wheelers in future. Yet, soon after, the Centre rolled out its latest draft of fuel-efficiency norms, which reduced the incentives for flex-fuel vehicles. Under its latest proposals on the Corporate Average Fuel Efficiency (CAFE) regulations, the Centre reduced the 'super credits' incentive for flex-fuel vehicles compared to the previous draft.Automakers get super credits or regulatory incentives that give cleaner vehicles more weight when their average fleet fuel efficiency is calculated. As per the latest proposal, while one electric vehicle (EV) is counted as 3, a flex-fuel vehicle will be counted as 1.1 vehicle, down from 1.5 in the earlier CAFE draft of September 2025. In April, the Indian Sugar and Bio-Energy Manufacturers Association had urged the government to retain the earlier incentive, stating they have already built up capacity. The moves come on top of the government's decision to price E85 petrol-blended with 85% ethanol-only about 20% below that of E20, well short of the 30% discount sought by the automobile industry to make the technology commercially viable. Queries sent to the ministries of road transport, heavy industries, petroleum, and power on how the government looks to promote flex-fuel vehicles remained unanswered. The policy changes on flex-fuel technologies under CAFE norms just nine months ahead of its scheduled enforcement in April 2027 can be a drag on the sector, experts said. "When signals evolve rapidly, or differ between the Centre and states, companies naturally become more wary, hesitant and measured in committing fresh capital," said Vinay Piparsania, founder at MillenStrat Advisory and Research. "A new vehicle programme is typically committed four to seven years before launch, with $300-500 million already invested in engineering, tooling, localization, supplier development, and manufacturing. Once those commitments are made, changing course is costly and disruptive."...