Tata Motors is working on its first flex-fuel vehicle, which is expected to be launched by the end of this year or early next year, probably at the Bharat Mobility Show 2027. This news was recently shared by Shailesh Chandra, Managing Director and Chief Executive Officer, Tata Motors Passenger Vehicles Ltd, during their recent earnings call to discuss the company’s Q4 and FY26 performance.
The government of India recently proposed amendments to the Central Motor Vehicles Rules for the legal framework of higher ethanol-blended fuels, including E85 and E100, paving the way for the introduction of flex-fuel vehicles in the country. With this, Tata has announced their readiness with India’s broader push to increase ethanol blending in petrol.

Flex-Fuel Tata Punch?
For those unaware, Tata Motors showcased the Punch flex-fuel prototype at the 2025 Auto Expo. It used the same 1.2-litre, 3-cylinder, naturally aspirated petrol engine as the existing model, albeit with few changes to the fuel injection system, ECU, and exhaust after-treatment system to be compatible with different ethanol blends. Therefore, it would not be incorrect to assume that the Punch could be the brand’s first flex-fuel vehicle. As of now, the Punch is available with petrol, CNG and electric powertrain options.
As regulatory clarity improves and infrastructure for fuels with higher ethanol blends expands, flex-fuel vehicles could emerge as a viable alternative alongside EVs and CNG models. This will also offer more choices to consumers while contributing to the country’s long-term sustainability goals. However, it is worth noting that ethanol has lower energy density than petrol, which means flex-fuel vehicles may deliver lower fuel efficiency. Additionally, a cold start could be a problem in winter, especially in northern states of the country. However, we seek more clarity from the brand regarding how it will address these issues.
Also Read: 2026 Tata Altroz CNG Now Available With Automatic (AMT)






