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[BUSINESS] · India · 2 sources

India's car market moves toward ethanol‑blended fuels

The Indian government has rolled out E20 petrol, a blend of 20% ethanol, making it available at most fuel stations. It also introduced E85 for flex‑fuel vehicles, which use 85% ethanol. These steps aim to cut carbon emissions and reduce dependence on imported oil.

Mercedes‑Benz India announced that all its petrol models sold from January 2026 will be fully compatible with E25 fuel (25% ethanol). The move aligns with the government's push for higher ethanol blends and offers buyers reassurance that their vehicles will run on the upcoming fuel without modifications. Together, the policy shift and automaker response signal a broader transition in the domestic automotive sector toward greener, bio‑fuel options.