As India moves towards a higher 25% ethanol blend (E25) in fuel by the end of the decade, Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, has called on policymakers to prioritize the compatibility of existing vehicles already on the roads.
"We need a heads-up so that we can plan and prepare ourselves for the future," Iyer stated during a recent media roundtable. He highlighted that the transition to E20 fuel, which the government implemented earlier, provided sufficient time for original equipment manufacturers (OEMs) to adapt, moving gradually from E10 to E15.
Addressing Fuel Compatibility Concerns
Iyer emphasized that policy decisions around E25 must account for the vast fleet of current vehicles. He noted that Mercedes-Benz vehicles sold in India since 2020 are materially compliant with E20 fuel. While Mercedes-Benz does have E25-compliant cars in its global portfolio, the company requires clear policy directives to decide on bringing more such vehicles to the Indian market.
"If we have to develop something, we have to see the volumes and a business case," Iyer explained, underscoring the necessity of policy clarity before significant engineering investments are made.
Mercedes-Benz India's Latest Offerings and Market Performance
Providing a glimpse into the brand's future readiness, Mercedes-Benz India introduced its first-ever plug-in hybrid in India, the new S-Class, in June. This luxury sedan is already E25 compliant, showcasing the company's capability to integrate future-ready technologies.
The announcement regarding E25 policy considerations came as Mercedes-Benz India reported strong sales figures for the first half of 2026. The automaker achieved its best-ever sales of 9,768 new cars between January and June 2026, marking a 9% year-on-year increase. The second quarter of 2026 also saw record performance, with 4,637 units retailed, representing a 10% growth compared to the same period last year.