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Bulk of Mercedes cars on road are E20 compliant, says MD
Bulk of Mercedes cars on road are E20 compliant, says MD

Business Standard

time2 hours ago

  • Automotive
  • Business Standard

Bulk of Mercedes cars on road are E20 compliant, says MD

Bulk of Mercedes-Benz cars currently on Indian roads are E20-compliant and the luxury carmaker has been selling such models in the country since 2018, the firm's India Managing Director & CEO Santosh Iyer told Business Standard in an interview. E20 compliance means that a vehicle's engine, fuel system, and emission-control components are designed and tested to operate safely on petrol blended with up to 20 per cent ethanol without causing damage. There have, however, been heightened social media discussions during the past few weeks about whether E20 fuel affects efficiency and engine performance. 'Mercedes Benz was the first in India to introduce a BS-6 compliant car. In August 2018, we introduced the new S class, which was BS-6 Gadkari (Union roads minister) himself flagged that car,' Iyer said, adding that all BS-6 compliant cars sold in India have been E20 compliant, too. The German carmaker has not tested the 'cars that were sold prior' to August 2018 for the impact of E20 fuel on their engines and fuel efficiency. Meanwhile, Iyer admitted that cars sold prior to 2018 might face a slight impact on performance due to E20 fuel, which is now being sold at fuel pumps. 'We have sold close to 200,000 cars in India in the past 30 years. However, the past 100,000 units were sold just in the past six years. The last 150,000 units were sold in the past 10 years. So, a bulk of the cars that we would have sold in India would be E20-compliant,' he noted. Iyer was talking to reporters on Tuesday night after launching the Mercedes-AMG CLE 53 4MATIC+ Coupé -- a high-performance, two-door luxury model -- in India, with prices starting at ₹1.35 crore (ex-showroom, Delhi). 'In 2024, we started getting the E20 certificates for our cars. So, in that sense, all our cars that we sell in India are fully compliant today on the E20,' he said. 'I think material compatibility (with E20 fuel) also remains for cars that we have sold earlier. But the fuel, and by the laws of physics and chemistry, you can say that if you have a lower or higher ethanol rating, the combustion process is different...I would say that you will definitely have a difference in performance,' he said. 'But today, the cars that we are currently selling have no change in performance because they are all compatible with the E20 fuel,' he noted. 'The cars that were sold many years back might have had a slight impact on the performance, but otherwise, I think the government's direction is clear and from April 2024, we started getting our cars certified as E20 compliant,' he noted. Mercedes-Benz, India's top luxury carmaker, started FY25-26 with its best-ever April–June sales, delivering 4,238 cars, a 10 per cent increase from last year.

Will Using E20 Petrol Violate Your Car's Warranty Or Insurance? Toyota Says...
Will Using E20 Petrol Violate Your Car's Warranty Or Insurance? Toyota Says...

News18

time4 hours ago

  • Automotive
  • News18

Will Using E20 Petrol Violate Your Car's Warranty Or Insurance? Toyota Says...

Last Updated: The debate over ethanol-blended petrol (EBP) has intensified after Toyota cautioned against using E20 fuel in certain models The debate over ethanol-blended petrol (EBP) in the automobile sector has intensified after a cautionary statement from Toyota regarding the use of E20 fuel in certain models. The issue, which revolves around whether higher ethanol content damages engines, comes just weeks after Union Road Transport and Highways Minister Nitin Gadkari declared EBP to be 'the fuel of the future". The latest controversy emerged on the popular automotive forum TeamBHP, where a user asked Toyota whether it was safe to run their Urban Cruiser on E20 petrol. Toyota's support team responded that the model was designed for E10 fuel and should not be run on E20. The company advised owners to strictly follow the fuel specifications mentioned in their car manuals. When asked whether the warranty would remain valid if E20 fuel was used, Toyota's reply was a blunt 'no". The automaker clarified that any engine damage caused by using fuel not recommended in the owner's manual would not be covered under warranty. This position starkly contrasts with statements from other manufacturers. Tata Motors has said all its vehicles are E20-compliant without risk, while Bajaj Auto has echoed the same, adding that owners of older BS3 motorcycles should use a fuel system cleaner to address ethanol-related deposits. The concern for consumers is compounded by the fact that the government has steadily increased ethanol blending in petrol, with many fuel stations now supplying E20 as standard petrol. For vehicles not designed for it, Toyota warns that prolonged use could cause damage, and owners would be left footing the repair bill. Insurance coverage adds another layer of complexity. Reports suggest that most insurers will not cover damage resulting from the use of incorrect fuel, meaning that if a non-E20-compatible car suffers engine failure due to ethanol content, the cost may fall entirely on the owner. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

Industry lauds E20 milestone but red-flags the challenges ahead
Industry lauds E20 milestone but red-flags the challenges ahead

Time of India

time15 hours ago

  • Automotive
  • Time of India

Industry lauds E20 milestone but red-flags the challenges ahead

New Delhi: Industry leaders on Monday commended the collaborative efforts that have driven India close to achieving 20 per cent ethanol blending with petrol (E20) well ahead of schedule. However, they also flagged consumer concerns regarding E20-compliant vehicles, particularly potential mileage drops and its corrosive nature, and assessed the gaps in industry's readiness to move towards higher ethanol blends. At the World Biofuel Day 2025 conference organised by the Society of Indian Automobile Manufacturers (SIAM), Rajnath Ram, Adviser (Energy) at NITI Aayog, said no abnormal wear and tear has been observed in Indian vehicles running on E20 fuel for up to 1 lakh kilometres. However, he acknowledged a drop in fuel efficiency when moving from E10 to E20 at about 2-3 per cent in newer vehicles and up to 6 per cent in older models. 'These are aspects the industry, stakeholders, and relevant government agencies need to jointly address to ensure the benefits are passed on to consumers,' he noted. On material compatibility, Ram said while BIS standards mandate the use of corrosion-free materials, low-cost gaskets or rubber replacements may be required in some older vehicles. Puneet Anand, AVP & Vertical Head, Hyundai Motor India said when an R&D engineer designs a car, there is always some level of tolerance or safety net built into it. However, to ease concerns about using cars or two-wheelers manufactured before 2023, the industry has requested the Centre to make available protection grade of fuel, particularly for older vehicles. 'Consultations on this are ongoing,' he said. E20-ready models, equipped with upgraded fuel system components, have been available since April 2023. It is a milestone in a journey that started with just 1.5 per cent blending in 2003, advanced to 10 per cent in 2022, and is now poised to hit the 20 per cent target five years ahead of the 2030 deadline. According to Harjeet Singh, Senior Technical Advisor at Hero MotoCorp, the two-wheeler segment, accounting for over 75 per cent of India's vehicular population and nearly two-thirds of its gasoline use, will be central to the fuel transition. These markets, especially in rural and semi-rural areas, require a robust distribution network, trained mechanics, and consumer education to drive adoption. He said the shift goes beyond fuel chemistry, demanding re-engineering of fuel systems, hoses, and gaskets, along with engine remapping for optimal performance. Planning and roadmap beyond E20 Anand emphasised that moving beyond E20 will require nuanced planning. On the technical side, this means calibrating engines for cold starts, managing vapour pressure, ensuring material compatibility, and maintaining onboard diagnostic accuracy- challenges he said are solvable, with trials already underway. Equally important, he added, are ecosystem enablers such as steady ethanol supply, clear pricing and taxation policies, investment in distilleries and logistics, and standardised fuel dispensing and labelling norms. Mayank Goel, Head of Supply- Fuels at Shell India, also highlighted the need for a clear and definitive roadmap for oil and gas companies to plan ahead and channel investments into the right areas. OEMs are also seeking clarity on the end target for ethanol blending, whether it will be capped at E30, E85, or any other level, to plan their product and technology roadmaps accordingly. An industry veteran questioned the logic of higher blended fuel being priced at par with regular petrol, urging the government to rationalise pricing and offer supply-side incentives to spur investment in flex-fuel technology. Without such measures, he warned, consumers might favour electric vehicles (EVs) over reinvesting in ICE options. The veteran also stressed the need for dual fuel options at retail outlets, recommending both E10 and E20 blends to support the existing vehicle fleet and ease consumer transition. Moving over 1G India's ethanol blending progress has so far been driven largely by first-generation (1G) ethanol derived from sugarcane, beehive molasses, and surplus grains. Singh of Hero MotoCorp pointed out that the next phase would require a transition to advanced biofuels sourced from non-food biomass such as agricultural residue, forestry waste, used cooking oil, algae, and other sustainable feedstocks. 'Advanced biofuels are crucial for India because they provide a sustainable pathway without triggering the food-versus-fuel debate,' he emphasised. Ashim Sharma, Senior Partner & Group Head, Nomura Research Institute (NRI) referred to the opportunities and challenges of diversification into second-, third-, and fourth-generation (2G, 3G, 4G) biofuels. In the flex-fuel era, he said, ensuring a steady supply of compliant vehicles and encouraging consumer adoption would crucial through measures such as differential pricing for blends beyond E27, fiscal support, and tax rationalisation. As higher ethanol blends could raise vehicle costs due to component upgrades, Sharma stressed the need for government incentives to offset this impact. Insiders noted the complexity in doing so, due to the involvement of multiple agencies, including the GST Council, Ministry of Agriculture, the Ministry of Petroleum and Natural Gas, amongst others. The beginning While India's ethanol blending journey began in 2003, the real acceleration came after the Centre notified the National Policy on Biofuels in 2018. It promotes multiple feedstocks for ethanol production, including 1G and 2G sources such as sugarcane juice, sugar beet, sweet sorghum, corn, cassava, damaged food grains like wheat and broken rice, and even rotten potatoes. On the pricing front, the Centre in September 2019 increased regulated prices for ethanol derived from B-heavy molasses, partial sugarcane juice, and 100% sugarcane juice. Additionally, GST on ethanol has been cut from 18 per cent to 5 per cent. India's first 3G ethanol plant, set up by Indian Oil Corporation in Panipat, is expected to scale up operations, while in 4G ethanol, NTPC is partnering with Jakson Green to produce ethanol from flue gas. However, technology development remains in the nascent stage and still has a long way to go.

E-20 compliance and insurance claim: Here's what you need to know
E-20 compliance and insurance claim: Here's what you need to know

Business Standard

timea day ago

  • Automotive
  • Business Standard

E-20 compliance and insurance claim: Here's what you need to know

As more and more fuel stations start rolling out E-20 fuel (petrol blended with 20 per cent ethanol), consumers are debating its benefits and drawbacks. Over the past few weeks, social media has been flooded with posts about E20 fuel after several motorists reported lower mileage and suspected engine issues. While the government insists the impact on vehicles was marginal, insurance experts warn that there's another risk that's not getting enough attention, your motor insurance claim. Concerns around claim rejection Standard motor insurance policies in India often exclude damage caused by 'wrong fuel use.' This means if your vehicle isn't E20-compliant and suffers engine damage linked to E20 fuel, your insurer could deny or reduce your claim. 'Policies often exclude damage from using incorrect fuel types,' says Paras Pasricha, head of motor insurance at Policybazaar. 'If an investigation finds that E20 caused the damage in a non-compatible vehicle, insurers might deny or scale down the claim,' Pasricha said. Rahul Mathur, chief executive officer of Roinet Insurance Brokers, adds that even engine protection cover may not help. 'Some insurers consider using the wrong fuel as gross negligence, which is grounds to void a claim. Even if the owner didn't know their car wasn't compatible, it may not work in their favour during a dispute,' he said. Surender Tonk, vice-president of the Insurance Brokers Association of India, says there have been cases of claims being rejected for this reason. 'Insurers follow manufacturer guidelines. If your vehicle isn't certified for E20, you risk losing the claim,' he notes. Why fuel compatibility matters While most policy documents don't explicitly mention ethanol blends, they do include general clauses about taking reasonable care of the vehicle. According to all three experts, using a fuel blend not approved by the manufacturer could fall under 'gross negligence,' making the insurer legally entitled to refuse payment. Steps to protect yourself Experts advise: As the government rolls out E20 nationwide, motorists need to look beyond mileage debates. The wrong fuel might not just harm your engine, it could also leave you with a hefty repair bill that your insurer won't cover.

Industry body ISMA backs ethanol-blending programme, dismisses misinformation
Industry body ISMA backs ethanol-blending programme, dismisses misinformation

Time of India

time2 days ago

  • Automotive
  • Time of India

Industry body ISMA backs ethanol-blending programme, dismisses misinformation

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has strongly defended the country's ethanol-blending programme amid 'misleading' claims from some quarters about its impact on vehicle engines. In a statement, ISMA said the E20 fuel blend, 20 per cent ethanol mixed with petrol, has undergone rigorous testing by Oil Marketing Companies (OMCs) and has been certified by the Automotive Research Association of India (ARAI) as fully compatible with Indian vehicles. Automobile manufacturers are already producing E20-compliant models, the association noted. Referring to Brazil's decades-long use of ethanol blends from E20 to E100 without major issues, ISMA highlighted that the South American nation currently blends over 27 per cent ethanol in petrol and is targeting 30 per cent by 2030. "Ethanol-blended fuel is not just a technological choice--it is a national imperative. Backed by rigorous scientific validation and decades of global experience, it delivers clear benefits for our farmers, our economy, and our environment," ISMA Director General Deepak Ballsaid in the statement. From an economic perspective, the ethanol blending programme has become a "game changer" for over five crore sugarcane farmers , with more than Rs 1.18 lakh crore transferred to them. ISMA argued that the blending of ethanol with petrol improved the financial health of sugar mills, ensured timely payments to farmers, and helped manage excess sugar inventories, ultimately stabilising sugarcane prices and protecting farmer incomes. The E20 target is also expected to save Rs 35,000-40,000 crore in foreign exchange annually by reducing crude oil imports, which account for over 85 per cent of India's consumption. "The recent negative campaign on social media against ethanol-blended fuels is not only misleading but also detrimental to a nationally important programme," the ISMA statement noted. Earlier this week, the Ministry of Petroleum and Natural Gas had also dismissed recent claims circulating on social media that E20 petrol causes a drastic drop in fuel efficiency , besides impacting the engines. The ministry clarified that while ethanol has a lower energy density than petrol, the impact on fuel efficiency is only marginal. In 2014, the ethanol blending was just 1.53 per cent. By 2022, India achieved 10 per cent blending, five months ahead of schedule. The original target of 20 per cent blending (E20) by 2030 was advanced to 2025 and has already been achieved in the current Ethanol Supply Year.

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