New Delhi: Ethanol and electric vehicles should be seen as complementary rather than competing technologies in India's transition towards cleaner mobility, the Indian Federation of Green Energy (IFGE) said, amid concerns over the impact of E20 petrol on vehicle mileage and compatibility.

IFGE said India needs a diversified energy strategy comprising ethanol, electric vehicles, hybrids, CNG and hydrogen, particularly as nearly 300 million internal combustion engine (ICE) vehicles remain on the country's roads.

"The debate should not be framed as ethanol versus EVs India needs both. E20 provides an immediate pathway to reduce crude oil dependence and strengthen energy security, while EVs, hybrids and other technologies continue to scale," said Dilip Patil, Regional Director, IFGE-West, Pune.

Addressing concerns over fuel efficiency, IFGE said studies by the Automotive Research Association of India (ARAI), Indian Oil and the Society of Indian Automobile Manufacturers (SIAM) indicate a 2-6 per cent reduction in fuel efficiency with E20 compared with E10.

The industry body said testing has not indicated widespread engine damage, while newer vehicles increasingly use ethanol-compatible materials. It added that concerns are largely associated with the transition of older vehicles.

India moved to nationwide E20 deployment by April 2025 and is now expanding higher ethanol blends, flex-fuel vehicles and second-generation ethanol, according to IFGE.

According to the latest figures released by the Ministry of Petroleum and Natural Gas, India's ethanol blending programme has resulted in foreign-exchange savings of more than Rs 1.97 lakh crore and substitution of nearly 316 lakh metric tonnes of crude oil since Ethanol Supply Year 2014-15.

The government has been pushing ethanol blending as part of efforts to reduce India's dependence on imported crude oil and increase the use of domestically produced fuels.