India is Showing the World the Way on Green Mobility, says MAHLE CEO Arnd Franz

At the IAA Mobility Show 2025 in Munich, MAHLE’s global CEO Arnd Franz said India’s pragmatic green transition — anchored in ethanol, biofuels, hydrogen, and electrification — offers a more balanced template for the world than Europe’s single-minded bet on battery EVs.

Franz acknowledged that the rollout of E20 has generated “tremendous noise” among consumers worried about fuel efficiency and rising costs. But he stressed that, over the long term, ethanol blending will prove to be both sustainable and economically viable. “Normally ethanol is cheaper than regular fuel.

Social acceptance must be at least not more expensive. Over time, with better supply chains and scale, it will come down,” he said, citing Brazil’s experience where ethanol is already about 25 percent cheaper than petrol.

He praised India for pushing through the E20 transition two years ahead of schedule, calling it “a decisive and admirable move” that supports energy security and creates opportunities for rural economies and farmers.

At the same time, Franz warned that the benefits must be passed on to consumers: “If margins stay high at the oil companies and refiners, acceptance will suffer. Regulators must ensure fair play.”

Franz contrasted India’s approach with Europe’s, where regulators have mandated a battery-electric-only future. “That is a huge bet,” he said. “We now see the reality check — lack of green electricity, dependence on imported materials, high production costs, weak used-car values, and charging infrastructure that is still not profitable. Europe took 10 years to reach a 15 percent BEV share. Scaling that seven-fold in the next decade is unrealistic.”

Instead, he called for “technological neutrality,” where multiple green solutions compete. “The planet needs CO₂ reduction fast. That means using every lever — electricity, hydrogen, biofuels — not betting everything on one horse,” he noted.

For MAHLE, India is also a growth hub. Franz said the company aims to double its India business from €400 million today to €700–800 million in the next 5–7 years. It is driven by localisation of advanced thermal management and electrification products, expansion into the aftermarket, and exports to the Middle East.

MAHLE also works closely with Indian two-wheeler and EV start-ups, which Franz described as “infectiously innovative.”

“India is setting examples for the rest of the world,” he concluded. “Even Europe is overdue on E20. The Indian way — sustainable, democratic, and multi-fuel — is the right way forward.”