The Indian Federation of Green Energy (IFGE) has argued that India's shift towards cleaner mobility will require multiple technologies rather than a choice between ethanol and electric vehicles, pointing to the continued presence of nearly 300 million internal combustion engine (ICE) vehicles on the country's roads, according to Business Today.
A diversified energy strategy
IFGE said ethanol, electric vehicles, hybrids, CNG and hydrogen should form part of a diversified energy strategy. Its comments come amid concerns about the effect of E20 petrol on vehicle mileage and compatibility.
"The debate should not be framed as ethanol versus EVs India needs both. E20 provides an immediate pathway to reduce crude oil dependence and strengthen energy security, while EVs, hybrids and other technologies continue to scale," said Dilip Patil, Regional Director, IFGE-West, Pune.
E20 efficiency and engine compatibility
IFGE said the reduction in fuel efficiency associated with E20 has been estimated at 2-6 per cent compared with E10, citing studies by the Automotive Research Association of India (ARAI), Indian Oil and the Society of Indian Automobile Manufacturers (SIAM). At the same time, the industry body said testing has not indicated widespread engine damage. It added that newer vehicles are increasingly using ethanol-compatible materials, while concerns are largely linked to the transition involving older vehicles.
Policy momentum and higher blends
India completed nationwide E20 deployment by April 2025 and is now expanding higher ethanol blends, flex-fuel vehicles and second-generation ethanol, according to IFGE. The government has been promoting ethanol blending as part of its efforts to cut dependence on imported crude oil and increase the use of domestically produced fuels.
Crude oil substitution and forex savings
The ethanol blending programme has also helped reduce the country's reliance on imported crude. The latest figures released by the Ministry of Petroleum and Natural Gas show that the programme has generated foreign-exchange savings of more than Rs 1.97 lakh crore and substituted nearly 316 lakh metric tonnes of crude oil since Ethanol Supply Year 2014-15.
| Metric | Value | Source |
|---|---|---|
| ICE vehicles on Indian roads | Nearly 300 million | IFGE |
| E20 fuel-efficiency loss vs E10 | 2-6% | ARAI, Indian Oil, SIAM |
| Forex savings from ethanol blending | More than Rs 1.97 lakh crore | Ministry of Petroleum and Natural Gas |
| Crude oil substituted since ESY 2014-15 | Nearly 316 lakh metric tonnes | Ministry of Petroleum and Natural Gas |
| Nationwide E20 deployment completed | April 2025 | IFGE |
Market significance
The IFGE's numbers provide a benchmark for India's ethanol programme: a 2-6% efficiency trade-off for E20 versus E10, nearly 316 lakh metric tonnes of crude substituted, and over Rs 1.97 lakh crore in forex savings. With nationwide E20 deployment completed and higher blends under expansion, ethanol remains a fixed component of India's fuel supply chain even as electric vehicles, hybrids, CNG and hydrogen scale.
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