The Indian Federation of Green Energy said ethanol and electric vehicles should be treated as complementary rather than competing technologies in the country's transition to cleaner mobility, noting that nearly 300 million (mn) internal combustion engine (ICE) vehicles remain on Indian roads. The industry group urged a diversified energy strategy that includes ethanol, electric vehicles, hybrids, compressed natural gas and hydrogen to address energy security and emissions. It argued that relying on a single solution would be impractical given the existing vehicle fleet and infrastructure constraints.

IFGE regional director Dilip Patil in Pune said the debate should not be framed as ethanol versus electric vehicles and that E20 provides an immediate pathway to reduce crude oil dependence while other technologies scale. He indicated that hybrids and other low-emission options will play an increasing role as charging infrastructure and vehicle offerings expand. The group described the policy approach as complementary, balancing near-term fuel substitution with longer term electrification.

On fuel efficiency, studies by the Automotive Research Association of India, Indian Oil and the Society of Indian Automobile Manufacturers indicated a two to six per cent reduction in fuel efficiency for E20 compared with E10. The industry assessment did not point to widespread engine damage and noted that newer vehicles increasingly use ethanol compatible materials. The body acknowledged that the principal concerns relate to older vehicles and to the need for targeted compatibility measures during the transition.

The federation said India achieved nationwide E20 deployment by April 2025 and is expanding higher ethanol blends, flex fuel vehicles and second generation ethanol production. The Ministry of Petroleum and Natural Gas figures show that the ethanol blending programme has yielded foreign exchange savings of more than Rs 1.97 trillion (tn) and substituted nearly 31.6 mn tonnes (t) of crude oil since Ethanol Supply Year 2014-15. The government is continuing to promote ethanol blending to reduce import dependence and increase use of domestically produced fuels.