The luxury carmaker sees no material degradation risk for older BS6 models; performance impact not tested
13 Aug 2025 | 5363 Views | By Ketan Thakkar & Hormazd Sorabjee
Mercedes-Benz India says it is fully prepared for India’s E20 fuel rollout, with all BS6-compliant vehicles sold since 2018 certified for E20 compatibility. Over 1 lakh vehicles sold since 2018 are plying on Indian roads, and the company noted that they will not face any issues with E20 fuel.
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Mercedes-Benz India says it is fully prepared for India’s E20 fuel rollout, with all BS6-compliant vehicles sold since 2018 certified for E20 compatibility. Over 1 lakh vehicles sold since 2018 are plying on Indian roads, and the company noted that they will not face any issues with E20 fuel.
According to Santosh Iyer, MD & CEO, the company began engineering for E20 well ahead of government timelines, ensuring both locally produced and imported CBUs meet material and emissions compliance standards.
The brand’s ethanol-readiness journey began much earlier — in 2012-13. Mercedes-Benz India conducted a nationwide drive with an ethanol (biofuel) powered car, demonstrating its capability and commitment to alternative fuels long before E20 entered policy discussions.
“We made every car E20-compatible when we shifted to Euro 6 in 2018, two years ahead of the industry deadline,” Iyer said. “From 2024, we have even begun issuing E20 compliance certificates for all models, including CBUs, after testing with ARAI.”
Older BS6 cars sold since 2018 have been tested for material compatibility, meaning hoses, pipes, engine components and gaskets will not degrade with E20 fuel. While performance and fuel efficiency impacts on pre-2018 models have not been formally tested, Iyer said customers are unlikely to notice a difference in everyday driving.
He stressed that Mercedes-Benz’s proactive compliance would limit any negative impact. “For customers, there’s no need to worry about material degradation. If buying a used car, they can always drive and check performance,” he said.
India set a target of 20% ethanol blending in gasoline by October this year, five years ahead of its initial target. The country was able to accelerate its timeline from 2030 to 2025-26 after successfully achieving 10% blending ahead of schedule.
Iyer’s comments come amid concerns among the public and reports on potential risks associated with the use of E20 petrol. Many drivers, particularly those with older vehicles, fear that using a fuel with more than 10% ethanol could harm their engines. Apprehensions include a negative impact on fuel economy, a shortened engine lifespan, and the possibility of expensive repair costs.
Iyer contrasted Mercedes-Benz’s approach with mass-market OEMs, noting that in lower-cost segments, vehicles were often engineered only to meet prevailing regulations at launch, increasing the risk of compatibility issues with higher ethanol blends. “The privilege of being in a premium segment is that we can go beyond regulatory minimums,” he said.
Recently, the government had come out with a clarification, trying to address potential risks associated with the use of E20 petrol. The government dismissed fears that E20 petrol severely affects vehicle mileage or damages engines, calling such concerns “misplaced”, while refuting “false narratives’ about insurance companies not covering damage emanating from the use of the blended fuel.
The government said the new E20 fuel offers benefits for modern engines and other benefits, such as lower emissions, reduction of crude oil imports and rural support, far outweigh the minor challenges related to fuel efficiency or any impact on the vehicles, which can be managed through routine maintenance.