India’s E20 petrol rollout pushes buyers towards alternative-fuel vehicles

BENGALURU: Consu mer hesitation over India’s transition to E20 petrol is boosting demand for vehicles powered by alternative fuels, the country’s auto dealers’ body said on Thursday, with sales of CNG, hybrid and electric vehicles within “striking distance” of petrol models in July.

Alternative-fuel passenger vehicles accounted for 40.59percent of total sales last month, just 1.09 percentage points behind petrol-powered models at 41.68percent, the Federation of Automobile Dealers Associations said. India has rolled out E20 petrol nationwide, requiring fuel sold at about 90,000 retail outlets to contain 20percent ethanol, replacing the earlier E10 blend as Prime Minister Narendra Modi’s government seeks to curb costly petroleum imports. FADA said consumer uncertainty around the transition pushed buyers towards CNG, hybrid and electric vehicles, adding that clearer communication on the E20 rollout could help convert hesitant petrol-vehicle buyers.

The transition has drawn criticism from some consumers, who say the higher ethanol blend affects fuel efficiency and vehicle performance, particularly in older vehicles not designed for E20 fuel.