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Business India News Updated Aug 10, 2026

Ethanol and EVs Must Coexist in India's Clean Mobility Shift: IFGE

India must adopt a diversified clean mobility strategy, with ethanol and EVs working together rather than competing. E20 petrol shows only a 2-6% fuel efficiency drop, with no major engine damage reported, especially in newer vehicles. The country has already rolled out E20 nationwide and is expanding flex-fuel and second-generation ethanol options. This approach has saved over Rs 1.97 lakh crore in foreign exchange and reduced crude oil dependence significantly.

Ethanol, EVs must coexist in India's clean mobility transition; E20 mileage impact limited: IFGE

New Delhi, August 10

Ethanol and electric vehicles should be seen as complementary rather than competing technologies in India's transition towards cleaner mobility, the Indian Federation of Green Energy said, amid concerns over the impact of E20 petrol on vehicle mileage and compatibility.

IFGE said India needs a diversified energy strategy comprising ethanol, electric vehicles, hybrids, CNG and hydrogen, particularly as nearly 300 million internal combustion engine (ICE) vehicles remain on the country's roads.

"The debate should not be framed as ethanol versus EVs India needs both. E20 provides an immediate pathway to reduce crude oil dependence and strengthen energy security, while EVs, hybrids and other technologies continue to scale," said Dilip Patil, Regional Director, IFGE-West, Pune.

Addressing concerns over fuel efficiency, IFGE said studies by the Automotive Research Association of India (ARAI), Indian Oil and the Society of Indian Automobile Manufacturers (SIAM) indicate a 2-6 per cent reduction in fuel efficiency with E20 compared with E10.

The industry body said testing has not indicated widespread engine damage, while newer vehicles increasingly use ethanol-compatible materials. It added that concerns are largely associated with the transition of older vehicles.

India moved to nationwide E20 deployment by April 2025 and is now expanding higher ethanol blends, flex-fuel vehicles and second-generation ethanol, according to IFGE.

According to the latest figures released by the Ministry of Petroleum and Natural Gas, India's ethanol blending programme has resulted in foreign-exchange savings of more than Rs 1.97 lakh crore and substitution of nearly 316 lakh metric tonnes of crude oil since Ethanol Supply Year 2014-15.

The government has been pushing ethanol blending as part of efforts to reduce India's dependence on imported crude oil and increase the use of domestically produced fuels.

— ANI

Reader Comments

Sarah B

Interesting perspective. As someone who follows India's energy policies from abroad, I appreciate the pragmatic approach. But I'm curious how the 2-6% mileage reduction affects the average commuter's monthly budget? That's worth considering.

Kavya N

Humein dono options ki zaroorat hai, lekin EV infrastructure abhi bhi weak hai. Gaon mein charging station nahi hai, toh ethanol blending waise bhi better option hai poore desh ke liye. Plus, sugarcane farmers ke liye yeh achha revenue source hai! 🌾

Aditya G

The IFGE's point about 300 million ICE vehicles still on roads is spot on. We can't just flip a switch and go fully electric. Ethanol blending is a practical bridge solution. But I wish they'd address more details about older vehicle compatibility - my 2015 car is showing some issues with E20. 😕

Nisha Z

Main ek middle-class family se hoon, mere liye mileage matter karta hai. 2-6% kam mileage ka matlab hai zyada petrol dena. Govt ko pehle old vehicles ke liye retrofit solutions de, phir E20 forcefully implement kare. Transparency chahiye! 💯

Deepak U

E20 ethanol blending India ke liye game-changer hai. Humne 1.97 lakh crore forex savings kaise nahi dekha? Aur farmer bhi fayda hoga. EV bhi achha hai but abhi ke liye ethanol hi Indian roads ke liye practical hai. Jai Jawan Jai Kisan

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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