NEW DELHI, India – Mercedes-Benz India's Managing Director and CEO, Santosh Iyer, has urged policymakers to carefully consider the implications of the proposed E25 ethanol blend rollout on existing vehicles already on Indian roads. Speaking at a media roundtable where the luxury carmaker announced its record sales for the first half of 2026, Iyer stressed the importance of a clear and timely policy framework.
“We need a heads-up so that we can plan and prepare ourselves for the future,” Iyer stated, highlighting that any transition to a higher ethanol blend must account for the current automotive fleet and its fuel requirements. He noted that the shift to E20 fuel did not happen instantly but progressed through intermediate blends like E10 and E15, allowing the industry time to adapt.
Industry Readiness and Policy Clarity
Iyer clarified that Mercedes-Benz vehicles sold in India since 2020 are already compliant with E20 fuel. Regarding the upcoming E25 blend, he mentioned that while Mercedes-Benz has some E25-compliant models in its global portfolio, significant engineering work would be required for others to meet the new standard for the Indian market.
The company's decision to introduce more E25-ready vehicles in India hinges on definitive policy clarity. “We will have to wait for the policy to decide because it will depend on whether the technology is available off the shelf. If we have to develop something, we have to see the volumes and a business case,” Iyer explained.
He expressed confidence that, similar to the E20 transition, the government would provide ample time and conduct due consultations with Original Equipment Manufacturers (OEMs) before mandating E25.
Mercedes-Benz Sales Performance and E25 Compliant Models
Mercedes-Benz India reported its best-ever sales figures for the January-June 2026 period, delivering 9,768 new cars, marking a 9% year-on-year increase. The second quarter (April-June 2026) also saw record performance, with 4,637 units sold, growing by 10%.
In a significant step towards future fuel standards, Mercedes-Benz introduced its first-ever plug-in hybrid in India in June – the new S-Class, which is already E25 compliant. This introduction signals the company's preparedness for evolving fuel policies, pending clear governmental directives.