E20 fuel rollout: Mahindra assures warranty support for vehicles running on ethanol-blended fuel

With India introducing 20% ethanol-blended petrol (E20) across 90,000 stations nationwide, Mahindra & Mahindra has confirmed that its engines meet current gasoline norms and can run safely on the new blend.

“All Mahindra vehicles are compatible with E20 fuel,” the company said. “Models manufactured after April 1, 2025, are specifically tuned for E20 to deliver optimal performance and efficiency. Older vehicles remain safe to drive on the fuel, though users may notice slight differences in acceleration or mileage depending on driving patterns. As a responsible manufacturer, Mahindra will continue to honour all warranty commitments for vehicles using E20.” The automaker added that it has consistently supported government initiatives on alternative and biofuels, highlighting its commitment to sustainable mobility solutions.

Earlier in the day, Mahindra Automotive CEO Nalinikanth Gollagunta noted that while E20 is safe, it can lead to reduced mileage and acceleration, according to Reuters. He said the company is preparing a detailed advisory for customers and dealers, expected to be shared next week.

Last month, the Society of Indian Automobile Manufacturers (SIAM) also clarified that older cars may experience lower fuel economy with E20, though there is no safety risk.

The rollout of E20, launched in 2023 to cut dependence on fossil fuel imports, has drawn mixed reactions. Many vehicle owners report reduced mileage, higher maintenance, and faster wear on parts.

Mahindra’s statement comes after Union Road Transport Minister Nitin Gadkari defended E20, accusing the petroleum lobby of spreading fear. He stressed that E20 is both climate-friendly and economical, pointing out that India spends nearly Rs 22 lakh crore annually on fossil fuel imports.

“Everywhere there are lobbies, there are interests... petrol lobby is very rich,” Gadkari said at an event in New Delhi, responding to criticism on social media about possible engine-related issues with E20.

Gadkari highlighted that Indian manufacturers are now producing electric cars, buses, and trucks at globally competitive prices, aided by the steady fall in battery costs. “The price of lithium-ion batteries is coming down, and over time, petrol and diesel vehicles will cost the same as electric vehicles (EVs),” he said.

A statement from the Ministry of Petroleum and Natural Gas earlier this year noted that India met its 20% ethanol blending target five years ahead of the original 2030 deadline.

Yet, since the nationwide rollout, vehicle owners have voiced concerns that the blended fuel affects mileage, accelerates engine wear, and drives up maintenance and replacement expenses.