Minor variation in acceleration, fuel efficiency: Mahindra shares take on E20 fuel and impact on its SUVs

While vehicles produced after April 1, 2025, are specially calibrated for E20 to ensure optimal performance, earlier produced vehicles, though 'completely safe to drive, could see a 'minor variation in either acceleration or fuel efficiency depending on driving behaviour,' M&M said

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Indian auto major Mahindra & Mahindra on Thursday announced it will honour all warranty commitments for its vehicles in cases related to E20 fuel usage. The company has also issued an advisory to customers and dealers addressing concerns about the new fuel.

According to a company statement, all Mahindra engines are fully compliant with existing gasoline standards and can be operated safely with E20 fuel. While vehicles produced after April 1, 2025, are specially calibrated for E20 to ensure optimal performance, earlier produced vehicles, though "completely safe to drive," could see a "minor variation in either acceleration or fuel efficiency depending on driving behaviour."

The announcement comes amidst widespread complaints from motorists on social media after E20 recently became the only choice of fuel at nearly 90,000 fuel stations across the country.

Earlier, Nalinikanth Gollagunta, CEO of Mahindra's automotive division, acknowledged the issue, stating, "Fuel blended with 20% ethanol is safe to use but he added that vehicles could see reduced mileage and acceleration," as reported by news agency Reuters.

Government has maintained that concerns are unfounded, with Road Transport Minister Nitin Gadkari claiming that social media campaigns against E20 were "politically motivated."

Union Road Transport Minister Nitin Gadkari on Thursday saidthat the widespread social media campaign targeting the blending of 20 per cent ethanol in petrol was a "paid campaign" launched to harm him politically.

Speaking at the annual convention of the Society of Indian Automobile Manufacturers (SIAM), the minister stated, "This social media campaign was a paid campaign. It was against ethanol and it was to target me politically." His remarks come amid a debate on social media over the impact of E20 fuel on vehicles, with many users claiming a drop in mileage of up to 20 per cent.

Gadkari also addressed recent conflict of interest allegations from the Opposition Congress, which claimed he was "aggressively lobbying" for ethanol production while his sons' firms benefited from the government's policy. The party had called for a Lokpal probe into the matter.

Responding to concerns about the E20 programme, Gadkari said that clarity has already been provided by all stakeholders, including the Automobile Research Association of India (ARAI) and SIAM. He also noted that a Supreme Court ruling on the matter is very clear. "I will just say that whatever it was, there was no truth in it. Everything has been clarified," he said.

Nitin Gadkari said the nation's fuel import bill is around Rs 22 lakh crore, and that E20 is an "import substitute, which is cost-effective, pollution-free and indigenous." He added, "Our Prime Minister's dream is to make India self-sustaining. So, from an economic point of view, if these Rs 22 lakh crore go to Indian economy, who will benefit? Shouldn't it be done."

The government advises that older vehicles may need to replace certain rubber parts and gaskets, but describes this as a "simple process."