Mercedes-Benz India and BMW Group India have said their latest petrol vehicles are engineered to run on ethanol blends beyond the current E20 standard, indicating readiness for higher ethanol-blended fuels as the government evaluates a rollout of E25. The manufacturers together account for more than 70 per cent of India's luxury passenger vehicle (PV) market. The Centre is assessing the impact of E20 petrol on vehicle performance and fuel efficiency before deciding on E25, reflecting a cautious regulatory approach. The luxury PV segment grew around four per cent to nearly 53,400 units in FY26 from about 51,500 units in FY25, with Mercedes-Benz India selling 19,363 vehicles in FY26 while BMW Group India retailed 18,655 units. Mercedes commenced FY27 with its highest-ever April–June sales, volumes rising over nine per cent year on year to 4,637 from 4,238, while BMW is yet to announce Q1 FY27 numbers. Mercedes-Benz India managing director and chief executive Santosh Iyer said the company's current petrol range is fully compatible with E20 and that some model lines have been engineered to support higher ethanol blends, with no observed increase in service cases attributable to E20. He indicated no special maintenance is required for customers using E20 and that fuel system components have been designed to handle such blends since the introduction of BS?VI emission norms. Iyer drew a distinction between ethanol blending and fuel adulteration and urged greater awareness of fuel quality, storage and dispensing standards. BMW Group India president and chief executive Hardeep Singh Brar said the company's petrol vehicles have been prepared to use up to 25 per cent ethanol for several years and are positioned for future regulatory change. He added that BMW's petrol and diesel models comply with existing fuel standards and that the company pursues a technology?open strategy, investing in battery electric vehicles, highly efficient internal combustion engines and hydrogen fuel?cell technology. Audi India and Volvo Car India did not respond to queries.