New Delhi [India], September 1 (ANI): Alternative fuels, including ethanol, are unlikely to be a major concern for two-wheeler mileage, as OEMs are improving vehicle efficiency to offset the lower calorific value of ethanol, said Ashutosh Varma, Chief Business Officer-India, Hero MotoCorp.

Highlighting demand fluctuations as a “big challenge” for the two-wheeler industry, Varma said repeated disruptions, including the COVID-19 pandemic, have made it difficult to predict demand trends over the past four to five years.

Speaking to ANI on the sidelines of the Auto Retail Conclave organised by the Federation of Automobile Dealers Associations (FADA), he said, “The outlook for the industry has been promising over the past year and in 2026. On this backdrop, having a pulse on how the market would move, make investments accordingly, be future ready, I guess that’s a big area.”

He further identified digitisation and the industry’s readiness to adapt to the evolving digital ecosystem as another major disruption facing the sector. However, he remained optimistic, describing the challenge as “an opportunity” and saying the industry was entering “exciting times.”

He also welcomed the government’s initiative, calling it “an excellent initiative” towards achieving energy independence.

As per Varma, there has been no incidents whatsoever of a higher damage being reported.

Expressing confidence over the alternative fuels, he said, “We are confident that there are new avenues, alternate energies, alternate fuels being developed that should shape the industry ethanol has a lower calorific value. So, to that extent, there is certain dip in mileage that comes in.”

Adding to this, Varma highlighted, Indian original equipment manufacturers (OEMs) have improved product efficiency through technologies like idle stop-start systems and low-rolling-resistance tyres, helping bridge the gap in mileage.

“So, honestly, not a concern that seems to be spoken all across,” he stressed.

Apart from this, Varma lauded the event, saying it is an excellent event that happens annually. “Congregation of dealers from across the industry, all manufacturers come here. A great event to share ideas and to learn from each other,” he added. (ANI)