ENA Sectors 2023-06-29 14:21:10 <p><span style="font-size:14px"><strong>New Delhi, June 29 (KNN)</strong> The automobile industry in India has requested a 5 per cent Goods and Services Tax (GST) on two-wheelers running on flex fuel, similar to electric-powered vehicles, said a senior official aware of the development.</span></p> <p><span style="font-size:14px">As per reports, the industry is seeking fuel at a price 35 per cent lower than E10 to compensate for loss of fuel efficiency, better running costs and increase customer acceptability of these vehicles,</span></p> <p><span style="font-size:14px"><strong><a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a></strong></span></p> <p><span style="font-size:14px">Vehicle prices are expected to go up with the mandated implementation of E20 blends in fuel from 2025. Vehicles in India currently run on E10 blend.</span></p> <p><span style="font-size:14px">Flex fuel vehicles run on petrol with higher ethanol blend (E20-E75) entailing lower consumption of fossil fuels but have lower mileage than internal combustion engine ones due to lower calorific value of the mix.</span></p> <p><span style="font-size:14px">According to a report in TOI, the recommendations to the government have been made by Society of Indian Automobile Manufacturers (SIAM).</span></p> <p><span style="font-size:14px">Indias leading two-wheeler makers from Hero MotoCorp to Bajaj Auto and TVS Motor Company are set to commence mass production of one flex fuel two-wheeler each by September/October 2024. For passenger vehicles, given complexity of product mix and volume constraints, timelines for mass introduction of flex fuel vehicles have been set in April 2027.</span></p> <p><span style="font-size:14px">Increased utilization of flex fuel for mobility needs will help provide an additional source of income to farmers who comprise 58 per cent of the workforce in the country.</span></p> <p><span style="font-size:14px">These considerations have made the Centre double down on efforts to promote the Ethanol Petrol Blending Programme (EPPB), ahead of the general elections next year. <em><strong>(KNN Bureau)</strong></em></span></p> 33892 https://knnindia.co.in/news/newsdetails/sectors/automobile-industry-demands-5-gst-on-flex-fuel-two-wheelers 2023-06-29 14:21:10 knnindia.co.in