Mahindra admits E20 fuel impacts performance as Gadkari’s campaign remarks spark debate

By: Bharat Daily Samachar Date: 12 Sep,2025

Mahindra Admits E20 Fuel Impacts Performance as Gadkari’s Campaign Remarks Spark Debate

India’s push toward green energy and sustainable fuel alternatives has once again become a hot topic of discussion, this time with automaker Mahindra & Mahindra stepping into the spotlight. The company recently acknowledged that the use of E20 fuel—a blend of 20% ethanol and 80% petrol—does lead to some impact on vehicle performance. This admission comes amid the political buzz created by Union Minister Nitin Gadkari’s campaign remarks, where he strongly advocated for higher ethanol usage in the country’s fuel mix.

While the government is steadily advancing towards its goal of promoting ethanol-blended fuel, Mahindra’s statement has sparked conversations across the automobile industry, consumer circles, and political platforms.

What Is E20 Fuel and Why Does It Matter?

E20 fuel is part of India’s larger plan to reduce dependency on fossil fuels, cut emissions, and support the farming community by creating demand for ethanol derived from crops like sugarcane. The government has set ambitious targets for blending ethanol with petrol, with E20 expected to become more widely available in the coming years.

However, the transition has not been without challenges. Ethanol-blended fuels often burn differently compared to pure petrol, leading to changes in engine efficiency, mileage, and overall performance. This is exactly what Mahindra highlighted, bringing a practical industry perspective into the conversation.

Mahindra’s Stand

In its recent statement, Mahindra confirmed that E20 fuel does affect performance levels in some vehicles, though the extent varies depending on the model and engine type. The company stressed that it remains committed to innovation and will continue to work on making its vehicles compatible with ethanol-blended fuel.

A senior official from Mahindra reportedly said, “We support the government’s green fuel vision, but adaptation takes time. Customers must also be aware that efficiency and performance may not always be the same as with standard petrol.”

This honest acknowledgment has been welcomed by some as a refreshing display of transparency, while others fear it may discourage consumers from embracing ethanol fuel.

Gadkari’s Push for Ethanol

Union Minister Nitin Gadkari has been one of the strongest voices in favor of ethanol blending in fuel. During his recent campaign speeches, he highlighted the importance of cutting crude oil imports and shifting toward biofuels. Gadkari has often claimed that ethanol-blended fuel is not only environmentally friendly but also beneficial for farmers and the economy.

However, Mahindra’s statement puts a spotlight on the gap between political vision and ground reality. While the push for ethanol is commendable, automakers are tasked with solving the technical and practical hurdles that come with it.

Impact on Consumers

For the average Indian car owner, the biggest questions are:

• Will my vehicle perform the same on E20 fuel?

• Will mileage go down?

• Will maintenance costs rise?

Automobile experts suggest that while newer vehicles are being designed to handle E20 fuel, older models may face challenges such as reduced mileage, engine knocking, or higher wear and tear. This could create concerns among consumers who are already battling rising fuel prices.

Industry Reactions

Mahindra’s admission has opened the floor for other automakers to share their views. Some industry insiders believe that most companies are aware of performance dips but have avoided discussing them openly due to political sensitivities.

Analysts note that while ethanol blending is essential for India’s future energy roadmap, automakers will need more R&D investment, engine redesigns, and consumer awareness campaigns to ensure a smoother transition.

Balancing Green Goals and Practical Realities

The debate triggered by Mahindra and Gadkari’s remarks highlights a key challenge: how to balance India’s green energy goals with practical consumer realities. On one hand, ethanol offers a sustainable path forward, reduces carbon footprints, and supports rural economies. On the other hand, consumers expect vehicles that deliver the same performance and efficiency they are used to.

If the government and auto industry work hand in hand, solutions such as flex-fuel vehicles (cars that can run on multiple types of fuel) and better engine calibration for ethanol blends could help bridge the gap.

What Lies Ahead?

For now, Mahindra’s statement may act as a wake-up call, reminding policymakers and consumers that while the shift to ethanol is crucial, it comes with trade-offs that must be addressed.

India’s automobile market is one of the fastest-growing in the world, and with millions of consumers depending on affordable and efficient vehicles, the adoption of E20 fuel will require both technological upgrades and public trust.

As the debate continues, one thing is certain: the road to a greener future is not smooth, but it is necessary. The coming years will show whether automakers and policymakers can find common ground to make ethanol not just a political slogan, but a practical, reliable reality for everyday Indians.