New Delhi, May 20 -- India's automakers have told the government that consumers are unlikely to adopt flex-fuel vehicles unless high-ethanol fuels such as E85 and E100 are priced significantly below petrol, according to two people aware of discussions between the petroleum ministry, oil marketing companies, and auto lobby group Society of Indian Automobile Manufacturers (Siam).

The industry has sought lower retail pricing for high-ethanol fuels along with tax benefits as the government accelerates work on a roadmap for higher ethanol blending amid rising energy security concerns.

In Brazil, where most vehicles can run on E85 or E100 fuels, high-ethanol blends are priced lower than the standard E27, according to the country's national ag...