E20 fuel safe but curbs vehicle performance, Mahindra executive says

By Aditi Shah

NEW DELHI (Reuters) – Fuel blended with 20% ethanol is safe to use, an executive at Indian SUV maker Mahindra & Mahindra said on Thursday as the country rolls out E20 in a clean energy drive, but he added that vehicles could see reduced mileage and acceleration.

E20 recently became the only choice of fuel at nearly 90,000 fuel stations across India, leading to complaints from motorists concerned about the impact on older vehicles.

Mahindra is drafting an advisory on the E20 blended fuel, which should reach customers next week, Nalinikanth Gollagunta, CEO of its automotive division, said at an industry body conference.

Worried motorists had taken to social media over concerns about confusing statements from carmakers on how E20 will affect their vehicle’s performance and fuel efficiency.

Carmakers initially said E20 fuel had not been tested for compatibility with older vehicles, but backtracked later saying it is safe to use.

The Indian government says concerns are unfounded and E20 is the only way forward. Older vehicles may need to replace some rubber parts and gaskets but the government says that is a “simple process”.

Earlier on Thursday, India’s road transport minister Nitin Gadkari said social media campaigns against E20 were “politically motivated.”

(Reporting by Aditi Shah in New Delhi; Writing by Nandan Mandayam in Bengaluru; Editing by David Goodman and Susan Fenton)

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