Key Highlights
- A camouflaged Tata Punch test mule has been spotted on public roads, despite the model having already received its facelift earlier this year.
- The test mule is believed to be the flex-fuel E85 variant.
- Tata Motors confirmed a flex-fuel launch by end-2026 or early 2027 during its Q4 FY2026 earnings call.Â
The new Tata Punch has already launched, facelifted, updated and on sale. So why is a heavily camouflaged Punch test mule still being seen on public roads?
Spy shots reveal a test mule of the Tata Punch in full camouflage, suggesting Tata Motors might be working to launch or unveil their flex-fuel vehicle by end-2026 or early 2027. The timing lines up perfectly with what Tata Motors MD and CEO Shailesh Chandra told analysts during the Q4 FY2026 earnings call.
“By the end of this year or early next year, we should be ready with our flex-fuel product,” Chandra said. He did not name the model, but the Punch has been the leading candidate since Tata showed a flex-fuel version at the 2025 Bharat Mobility Expo.
What Makes the Flex-Fuel Punch Different
The flex-fuel Punch uses the same 1.2-litre three-cylinder naturally aspirated petrol engine as the standard version. The changes happen underneath. The flex-fuel version receives several mechanical modifications: revised fuel injector systems, a recalibrated ECU, and an updated exhaust after-treatment system to detect ethanol content and adjust to varying fuel blends.
The result is a car that can run on anything from standard E20 petrol all the way to E85, which is 85 percent ethanol. An E100 option is also possible.
Why This Matters
India hit E20 nationwide availability on April 1, 2026, five years ahead of schedule. The government is now pushing harder. The Ministry of Road Transport and Highways has already issued a draft notification proposing to formally add E85 and E100 fuels into India’s regulatory framework.
For buyers, flex-fuel means cheaper running costs. Ethanol is domestically produced and priced lower than petrol. For a car used primarily for daily commuting, the savings can be meaningful over time.
The Punch already comes in petrol, CNG, and electric versions. A flex-fuel variant would make it one of the most versatile small SUVs in India, available in four different powertrain options. No other car in the segment comes close to that.
Maruti Suzuki has also been testing the Wagon R flex-fuel. The race to India’s first mass-market E85 car is on.
Also read: BMW cars in India to get expensive by up to 2 percent in July 2026
