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Automobile group SIAM drums up support for opportunity fuels

Julia R. Williams by Julia R. Williams
June 26, 2025
Home Auto Mobile

Pitching for options besides electrification and hybridization, the Society of Indian Automobile Manufacturers (SIAM) has organized and circulated a white paper on alternative fuels within the country.

A white paper is a record that informs stakeholders about an issue and provides a few guiding standards for the future course of action.Automobile group SIAM

The industry frame has proposed that the authorities look at CNG, LNG, LPG, Hydrogen, and biofuels like ethanol, methanol, and biodiesel as alternative fuels and roll out infrastructure with a firm plan for the subsequent five years and a tentative plan for the next ten years.

In the paper, a replica of which has been reviewed by CNBC-TV18, SIAM has proposed that the enterprise will endeavor to make gas-powered wheelers and passenger automobiles well-suited with ten percent ethanol and three percent ethanol blends through 2025. By 2030, the enterprise could make specific automobiles compatible with 20 percent ethanol-blended fuel, depending upon sustained availability of fuels, with one at a time labeled dispensing at fuel stations, it said.

For diesel-fueled vehicles, SIAM has proposed that the enterprise body make motors compatible with BVII or 7 percent bio-diesel blends using 2020. For passenger vehicles, even as huge-scale electric cars are expected from 2030, BVII-compliant cars can continue to help the initiative of reducing crude imports, SIAM has cautioned.

Mooting a better penetration of CNG in the mild commercial car and town buses segment, SIAM expects that deployment of 6,000 CNG stations with the aid of 2025 and 10,000 stations by 2030 will cater to twenty million CNG automobiles. As of nowadays, there are 1300 CNG stations throughout India, catering to three million cars. Such infrastructure can bring about 5 to 10 percent of the latest automobile sales to be in the CNG category, as per SIAM.

“For vehicles, the industry will even invest in research and improvement inside the field of LNG and dimethyl ether and might attempt to gain five percent and 10 percent penetration by way of 2025 and 2030, respectively, depending on availability and vital roll out of fuel allotting infrastructure,” SIAM stated.

Similarly, for 3-wheelers, CNG penetration may be expanded. Using 2030, the gasoline-powered automobiles might be made like-minded with a 20 percent ethanol-mixture or E20, and diesel automobiles with B7, SIAM has proposed.

“While electrification and hybridization of the fleet will be required to decrease gasoline usage for automobile functions, the National objectives of energy protection, decreasing emissions may be supported by way of the augmentation and merchandising of alternative fuels,” SIAM said in the paper.

SIAM has additionally requested the government to offer clarity to the industry to increase vehicles and has asked that an independent enterprise review the progress of every segment of alternative fuel implementation under the government.

“Specific interventions by way of manner of financial incentives will be required to improve client recognition and consequently, penetration of the technology to obtain scale and a corresponding reduction of fossil fuel usage,” SIAM stated, including that decrease taxes on production and distribution infrastructure, viability gap funding for the excessive value of technology acquisition and decrease taxation on the income of opportunity fuels can be used as incentives.

At present, the kingdom of development in diverse alternative fuels is yet to attain tremendous ranges. In ethanol, against a target of 10 percent, set in 2013, best 2. Three percent of the average ethanol was mixed in 2016. In the case of biodiesel, even as automobiles are well-matched with 5 percent biodiesel mixed gasoline, the availability of fuel remains restricted. For methanol, India continues to be at a nascent stage in usage and manufacturing. Factors of the fee and infrastructure are limitations in LNG and CNG.
Research is taking place in the areas of hydrogen and fuel cells, bio-CNG, drop-in fuels, and bio-hydrogen.

Julia R. Williams

Julia R. Williams

I love technology, and I love to share what I learn. I write about the latest tech trends, from hardware to software and beyond. My writing has appeared in various online publications and print publications, including PCMag, MakeUseOf, TheNextWeb, and more. I'm based in San Francisco, California.

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