E20 fuel, which is twenty percent of ethanol mixed with 80 percent petrol, has been introduced in 11 states and Union Territories. It will be made available across the country 2025. According to ICRA, the auto industry and OEMs are “unlikely” to find the adoption a “major challenge”. They wrote, “No major design changes are required from a vehicle standpoint… impact on the vehicle cost is expected to be less than 1% in the case of passenger vehicles and about 2- 3% in the case of two-wheelers.” For customers, transition from E10 to E-20 compliant design, may increase total cost of ownership may go up because fuel-efficiency may come down.
