Concerns over ethanol-blended fuel may be starting to influence vehicle purchase decisions in India, with 43 per cent of prospective buyers saying they may defer or avoid buying a vehicle in the next 12 months because of uncertainty surrounding E20 petrol and the government’s proposed transition towards higher ethanol blends, according to a LocalCircles survey.
The survey, which gathered responses from more than 28,000 prospective vehicle buyers across 311 districts, found that 43 per cent of respondents were “not planning to buy any new vehicle as unsure about fuel”. Another 30 per cent said they had no immediate need to purchase a vehicle.
Are hybrid and electric vehicles gaining preference?
A notable finding was the sharp decline in interest in petrol vehicles. Only 6 per cent of respondents said they planned to buy a new petrol vehicle in the next year, compared with a combined 14 per cent who said they intended to purchase a new electric or hybrid vehicle. Seven per cent each favoured EVs and hybrids.
The findings could be significant for automakers, particularly manufacturers with large petrol-vehicle portfolios. While the survey does not establish a direct impact on sales, it suggests that uncertainty around future fuel compatibility and operating costs is becoming part of consumers’ purchase calculations.
According to the report, concerns have intensified since the rollout of E20 fuel, with vehicle owners reporting lower mileage and higher maintenance costs. A separate LocalCircles survey of more than 50,000 petrol vehicle owners found that five in 10 respondents reported fuel-efficiency losses of over 10 per cent after the transition to E20, while three in 10 reported increased wear and tear or repair requirements.
Why does the government continue to back ethanol blending?
The government, however, has maintained that ethanol-blended fuel has minimal impact on vehicle performance. Petroleum Minister Hardeep Singh Puri has repeatedly backed the ethanol programme, which forms a key part of India’s energy-transition strategy.
The Centre has said E20 will remain the standard fuel until October 2026, while studies on higher ethanol blends are under way. The survey suggests that consumer confidence in the fuel roadmap could become an important factor as policymakers weigh the next phase of India’s ethanol-blending programme.
