Auto sector pushes for trials ahead of E25 move over vehicle concerns

India has around 240 million two-wheelers and 40 million cars that were originally designed for lower ethanol blends, and automakers are concerned about how these vehicles will handle E25 fuel as the government considers moving beyond mandatory E20. 

 

The issue has figured prominently in recent internal deliberations in the automotive industry, Business Standard has learnt.

 

Multiple industry executives said testing by government-run agencies in 2026 should be an essential part of any transition to E25. Customers can adapt if there is adequate awareness, appropriate fuel pricing, and clear guidance from automakers, they added.

 

E20 — a blend of 20 per cent ethanol and 80 per cent petrol — is currently mandatory in India, with all fuel pumps supplying this grade. 

 

Following the US and Israel attacks on Iran on February 28, the Ministries of Petroleum and Natural Gas and Heavy Industries began discussions with the automotive industry on how to move beyond E20 towards higher blends such as E25 (petrol blended with 25 per cent ethanol and 75 per cent petrol).

 

Executives are likely to recommend a phased transition rather than a direct shift to E25. They said “E20 +/- 1” — which allows the ethanol content to vary slightly around 20 per cent — could serve as an interim step to move quickly to about 21 per cent blending. They added that testing could then support a gradual increase of another 4 percentage points to reach E25 between January 2027 and December 2028, giving both industry and consumers time to adjust.

 

Executives also pointed out that India has a highly diverse vehicle base, including a large number of older vehicles, especially two-wheelers that use carburetors, as well as newer vehicles with fuel injection and electronic controls.

 

Since different vehicle types may respond differently to higher ethanol blends, a gradual, well-planned transition would help ensure all segments adapt without affecting performance or user experience.

 

The government will also need to update rules to address possible warranty and liability concerns if India moves to E25, executives said. The current framework under the Central Motor Vehicles Rules is based on E20 as the standard fuel and governs how vehicles are tested, approved, and monitored.

 

This includes “type approval” (pre-launch testing and clearance), “conformity of production” (ensuring factory-made vehicles match the approved model), and “in-service conformity” (ensuring vehicles continue to meet standards in use). These norms will need to be aligned with higher ethanol blends such as E25.

 

Executives added that vehicles across the country have been running on E20 since January 2025 without major issues, with no known instances of engine failure or insurance claims linked to its use.