Indian automakers seek looser fuel vapour limit citing E20 petrol
Indian carmakers want a higher evaporative emissions limit under BS VII, pointing to 20% ethanol petrol, according to Mint's sources and a draft proposal.
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what happened
According to Moody's, citing Mint, Indian automakers are likely to seek concessions in upcoming BS VII emissions rules. Their argument is India's 20% ethanol (E20) petrol blend, which is higher than in most other economies.
The government proposed BS VII on October 14, starting in 2029. The draft sets a 1.5-gram-per-test limit on fuel vapour, while SIAM has proposed at least 2 grams, citing E20's higher Reid Vapour Pressure. The ethanol lobby Gema argues that adding ethanol does not automatically make petrol more volatile, and that fuel composition matters.
Several automakers did not respond to queries. Mahindra & Mahindra declined to comment.
why it matters
For markets, the story matters mainly for India's auto sector and ethanol producers. A looser limit would lower automakers' compliance costs, while stricter rules could push changes to fuel blends. Demand for ethanol and India's sugar sector also depends on biofuel policy decisions.
market impact
Indian auto sector and ethanol producers: the vapour limit decision affects compliance costs and demand for E20 blends
tags
instruments
sources
- Automakers seek higher fuel vapour emission limit under BS VII citing E20 petrol — Moody's, 23 October 2026 at 03:35 UTC
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