After BMW, Mercedes-Benz now backs E20 fuel, says its cars are ‘materially compatible’ with ethanol blending

Amid the E20 controversy, Mercedes-Benz has published its official statement on the issue. This comes after

“At Mercedes-Benz, customer safety, vehicle reliability and performance are of paramount importance to us. All Mercedes-Benz petrol BS VI vehicles are materially compatible with E20 fuel and certified accordingly by relevant authorities,” the car company wrote.

“We are happy to support customers for any technical queries. Mercedes-Benz remains committed to sustainable mobility,” it added.

BMW Group India's President and CEO, Hardeep Singh Brar, recently addressed fuel readiness. According to him, BMW's petrol vehicles have long supported higher ethanol blends. These cars have already been prepared for up to E25 fuel.

According to Puri, this positions the company well for the upcoming regulatory changes ahead. Brar confirmed BMW's petrol and diesel vehicles met current Indian standards. He also reiterated BMW's broader technology-open strategy overall.

That includes continued investment across electric vehicles and combustion engines. Hydrogen fuel-cell technology remains part of this strategy, too.

According to Brar, ethanol blending plays an important environmental role. It helps significantly reduce dependence on conventional fossil fuels. This supports India's wider energy security and environmental objectives.

"I would like to highlight that for the past several years, our cars have been prepared to take up to E25 fuel and will be ready in line with future regulations," Brar said.

E20 Controversy

India's E20 fuel rollout has sparked widespread consumer backlash nationally. The government accelerated its timeline, making E20 the baseline fuel already. This has triggered protests and a public interest litigation before the Supreme Court.

Many motorists have reported significant mileage drops, far exceeding official estimates. Independent surveys suggest 66% experienced reductions exceeding 10%.

Older vehicles reportedly risk engine damage as ethanol is highly corrosive. Unlike other countries, India removed lower blends entirely from several pumps.

There is concern that insurers may reject damage claims involving non-compliant older vehicles. Consumers also resent paying standard prices despite ethanol's lower energy value.

“Make a sensible policy that won’t impact our vehicles and also benefit the nation,” political analyst Tehseen Poonawala said.

“A sugarcane farmer gets ₹3.65 per kilo. You get ethanol-blended petrol for ₹102. The margin is going to the distilleries owned by policymakers. You can’t make a policy to benefit your son,” he added.

The government has defended the policy through an official FAQ document. It claims E20 saved India ₹1.97 lakh crore in foreign exchange. Over ₹1.66 lakh crore reportedly benefited farmers and the rural economy.

Officials cite roughly 40% lower lifecycle emissions from the blend. They insist that rigorous testing found no widespread mechanical failures.

Higher octane numbers reportedly improve combustion and acceleration performance. The government explains that price differences stem from guaranteed procurement costs for farmers.