New Delhi, Sep 1: Ethanol-blended E20 petrol does not pose a problem for vehicles, though some older cars may see a decline in mileage, Federation of Automobile Dealers Associations (FADA) President Sai Giridhar said, seeking to allay consumer concerns around the fuel.
Speaking exclusively to ANI on the sidelines of the FADA 8th Auto Retail Conclave, Giridhar said E20 is regular petrol blended with 20 per cent ethanol and has already been in use in the country.
"E20 is the normal petrol which is available today. There is nothing alien about it. It is just a blended petrol which comes with 20 per cent ethanol. It is a tried and tested product by government agencies," he said.
He said vehicles launched in India from 2023 are E20-compliant, while older vehicles are also unlikely to face major problems from using the blended fuel.
"The average might drop, but that would be in legacy cars, probably cars which are 10 years, 12 years, 15 years old cars. From 2023, whatever cars are being launched in India are all E20 compliant cars. So there has to be no fear," Giridhar said.
He also acknowledged that dealers were initially not adequately prepared to answer customer concerns around E20, but said original equipment manufacturers (OEMs) have since shared standard operating procedures to help dealerships respond to queries.
"Now with the SOPs being shared by OEMs, we are able to solve, resolve, answer all the queries which the customers are asking and do it in a very professional way and in a very scientific way," he said.
On the broader automobile market, the FADA President said rural India is increasingly becoming the key driver of demand, with growth becoming more broad-based ahead of the festive season.
"The next growth story will not be urban, it will be written in Bharat," Giridhar said, adding that rural markets have shown strong month-on-month growth over the past six months.
He said recent policy measures, including interest rate cuts and tax reforms, were supporting demand, but added that "the major contribution is from Bharat."
Giridhar also sounded more optimistic about India's electric vehicle transition, saying the government's target of 30 per cent EV penetration by 2030 now appears achievable.
"I think the way we're going, we would probably beat that target. Had you asked me that question probably four to five months back, I would have said that it is highly unlikely that we'll be able to achieve those numbers. But now it looks feasible," he said.
Addressing the conclave, Giridhar said the automobile retail ecosystem is being reshaped by changing consumer expectations, technology, artificial intelligence, electric vehicles and the growing used-vehicle market.
He also called for further simplification of regulatory processes for automobile dealers, including completely paperless vehicle registration, simpler ownership transfers for used vehicles and movement towards "one state, one trade certificate".
Giridhar said the industry's next phase of growth would require dealers, manufacturers and the government to work together, while expanding automobile retail deeper into smaller towns and rural markets. (ANI)
