Wednesday, August 5, 2026

India's auto lobby revises numbers after retraction of warning about ethanol fuel damage

August 5, 2026

India's auto industry said that it would rework the numbers it provided to the government, as it withdrawn its first warning about damage to vehicle parts caused by contaminated fuel containing ethanol. This stoked consumer anger over this controversial policy.

The move on Tuesday came after the media reported the warning of the group, causing public outrage and forcing the Petroleum Ministry to issue a clarifying statement.

The Society of Indian Automobile Manufacturers issued a statement saying that "the referred numbers reported by the media require authentication." ".... SIAM has therefore withdrawn its previous communication.

SIAM, the organization that sent out its warning on 28 July, and the recipient ministry of petroleum in India did not respond immediately to comments.

India's automakers have accepted for the first-time issues stemming from a policy mandated by the government that led to street protests, court cases, and anger among consumers after it was implemented at 90,000 gas stations.

The lobby group?didn't deny contamination in its statement but stated that some of the numbers quoted "need to be authenticated through the collection of elaborate data... throughout the country, followed by a thorough?consultation.

However, the group's members, which include Maruti Suzuki and Toyota Motor Corp, did not specify when they would complete their efforts.

QUESTIONS FROM VEHICLE OWNERS

The U-turn is not popular with vehicle owners.

"Did science change over night, or did ministry call?" Nachiket Dehpande was one of the dozens of angry social media users who asked a question on X.

In 2025, the policy of blending 20% ethanol with petrol to produce a product named E20 will replace E10 across the country.

The government of Prime Minister NarendraModi had set a deadline for 2030, but the E20-compliant vehicles only began to be sold in 2023.

Consumers have been outraged by the rollout, blaming it for fuel mileage losses and vehicle damage. Many are demanding lower ethanol blends for vehicles that can't use E20.

The government tried to calm the fears with 'press statements and social-media campaigns.' It also invited executives from major carmakers, such as Maruti or Hyundai, to defend the rollout at a press conference in July.

Warnings of corrosion or wear

The group's letter to the Ministry warned of elevated chloride levels and moisture in E20 sold at retail outlets across the country.

"Members have noticed a significant increase in the number of?issues in customer vehicle parts and replacements. The failure was due to corrosion and wear, which can be traced back to high chloride levels in the fuel.

The report added that car parts that are in direct contact with fuel or engine emissions suffer the most "specifically following E20 implementation".

The ministry also called for stricter quality control against contamination.

The?oil companies monitor fuel quality on a regular schedule and two cases of chloride contamination were detected in a sample 2,000 tests. This was announced on social media by the?ministry on Tuesday.

A senior government official, speaking on condition of anonymity, said that the fuel concerns were a "misinformation" campaign against E20. The misinformation was mainly played out on social media, with no evidence being found in actual cars on the roads. (Reporting Aditi, Arpan and Sarita Chaturvedi; Additional reporting Aditya Kalra. Editing by Clarence Fernandez.)

(source: Reuters)

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