‘The petrol lobby is very rich and strong.’
IMAGE: Union Minister of Road Transport and Highways Nitin Gadkari addresses the Federation of Automobile Dealers Associations’s Auto Retail Conclave 2025 in New Delhi, September 10, 2025. Photograph: ANI Photo
The recent criticism on social media of E20 fuel, which is 20 per cent ethanol mixed with 80 per cent petrol, is ‘propaganda’ sponsored by the ‘rich and strong’ petrol lobby, Union Minister for Road Transport and Highways Nitin Gadkari said on Wednesday.
In recent weeks, social media debates have focused on concerns that E20 fuel may adversely affect vehicle mileage and engine efficiency.
‘There are lobbies everywhere. There are interests. You (Fada) are also one of the lobbies. We are expecting support from you. Some propaganda is there on social media. It is sponsored by some people. The petrol lobby is very rich and strong,’ Gadkari said while speaking at the annual auto retail conclave organised by the Federation of Automobile Dealers Associations in New Delhi.
On August 12, the ministry of petroleum and natural gas had stated that concerns regarding reduction in fuel efficiency are ‘misplaced’ and the alternative of going back to E-0 fuel would ‘involve losing the hard fought gains’ on pollution and energy transition.
Gadkari on Wednesday also addressed the recent shortage of rare earth magnets and the semiconductor chip crunch experienced a few years ago by the Indian automobile industry. =Both shortages largely stemmed from India’s reliance on China for these materials.
‘Previously, the situation was not good (related to production of semiconductor chips in India). Today, we have started producing semiconductor chips in India.
‘In the same way, our startups are working on battery chemistries now — sodium ion battery, lithium ion battery, zinc ion battery, aluminium ion battery, etc. These startups are doing good research,’ the minister said.
Gadkari also highlighted that scrapping old vehicles could generate significant quantities of rare earth metals, with the government now providing ample incentives to promote such initiatives.
On the future of petrol and diesel vehicles amid the government’s push for alternative fuels and electric mobility, Gadkari said, ‘People keep asking me that you keep supporting all alternative fuels and biofuels. There is confusion in people’s minds that there are all types of alternatives now, so what is going to happen (to petrol or diesel vehicles). You need not bother.
‘The demand for petrol and diesel vehicles is still going to increase… because the growth in automobile manufacturing is about 15 to 20 per cent. The international market is also very huge.’
On the growth of India’s automobile sector, he said, ‘When I had taken charge as the minister, the size of the Indian automobile industry was ₹14 lakh crore, and our number was seventh.’
‘The number one automobile market in the world is the US. Its automobile industry’s size is ₹78 lakh crore. Second is China at ₹47 lakh crore. And third is India at ₹22 lakh crore. By developing alternative fuels, biofuel, battery chemistries, new technology and innovations, I am confident that our target is to make India number one in the world.
‘It is difficult, but not impossible because of the cost of making a vehicle in India and the quality of what is produced here. Quality is good and the cost is less,’ the minister said.
On the Indian automobile sector’s future, Gadkari said, ‘All big manufacturers are manufacturing in India and they realise that the domestic potential is very high and the international potential is greater than that. That is why the future of this industry is very good.’
Feature Presentation: Rajesh Alva/Rediff
