Mercedes-Benz Urges Phased Ethanol Shift Before Exceeding E20 Blend in India
Big Fleet Concerns Drive Call for Gradual Transition
Mercedes-Benz India has strongly advised the government to grant automakers adequate time before pushing ethanol content in petrol beyond 20 percent (E20). The company emphasized that any transition must carefully consider India's vast existing vehicle fleet, which includes millions of older vehicles already operating on Indian roads.Santosh Iyer, Managing Director and Chief Executive of Mercedes-Benz India, confirmed to ET that the brand’s newer models are fully compatible with E20 petrol. Some advanced vehicles, such as the new S-Class Hybrid, even have capabilities for E25, which features 25 percent ethanol.
However, Mr. Iyer stressed that wider adoption of higher ethanol blends may necessitate further technological changes and adjustments to vehicle components. He requested a gradual approach, stating, "Give us time, allow us to change what is required up to a reasonable extent."
Need for Dual-Grade Petrol During Transition Phase
A critical suggestion from Mercedes-Benz during this transition period is the provision of multiple petrol grades at fuel stations. This dual-grade arrangement would allow vehicle owners to select the fuel type best suited for their specific car, especially those older models that were not initially designed for higher ethanol content in petrol.The primary concern voiced by the luxury automaker is centered not on its modern fleet, but rather on the sheer scale of India's existing vehicular population. While Mercedes-Benz has experienced no significant technical issues linked to E20 petrol, dealerships have received increased inquiries from customers concerning mileage, engine durability, and overall fuel compatibility.
Industry Weighs Trade-Off Between Environment and Practicality
The comments come as the government scrutinizes the next phase of its ethanol program. According to reports, the Automotive Research Association of India is slated to conduct extensive 150,000-kilometre trials using E25 petrol before the findings are reviewed by the International Centre for Automotive Technology.Industry representatives have affirmed that comprehensive testing and service data currently show no widespread damage from E20. Nevertheless, they acknowledge a modest reduction in fuel efficiency because ethanol inherently contains less energy than traditional petrol.
Ethanol Targets and Corporate Performance
India initially planned to achieve 20 percent ethanol blending by 2030, subsequently advancing this goal to the 2025-26 ethanol supply year. The government maintains that this program aims to reduce dependence on imported crude oil, lessen emissions, and boost demand for domestically produced ethanol.In a separate indicator of strong market performance, Mercedes-Benz India recorded sales of a record 9,768 vehicles during the first half of 2026. This represents a solid increase of 9 percent compared to the same period in the preceding year.
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