Indian Automakers Backtrack on E20 Damage Claims to Collect Fresh Nationwide Data

According to a report by Reuters, the Society of Indian Automobile Manufacturers (SIAM) has retracted its initial formal warning to the Indian government regarding vehicle component damage caused by contaminated E20 ethanol-blended petrol. The automobile industry body stated that it is withdrawing its previous communication sent to the Ministry of Petroleum and Natural Gas on July 28 to authenticate and revise its findings through extensive nationwide data collection and industry consultations.

The retraction came shortly after media outlets published the contents of SIAM’s original letter, which had sparked public backlash and prompted a clarification from the petroleum ministry. In its initial communication, the lobby group, representing major automakers including Maruti Suzuki, Tata Motors, Toyota, and Mercedes-Benz, had acknowledged a significant increase in vehicle part failures, specifically citing corrosion and wear in fuel injectors, fuel pumps, and EGR valves due to high chloride and moisture levels in E20 fuel.

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While SIAM did not deny the presence of fuel contamination in its subsequent clarification, it emphasised that reported figures required additional verification across various regions. The petroleum ministry maintained that fuel quality is monitored regularly, noting that oil marketing companies perform frequent water ingress tests and that chloride contamination remains minimal.

The abrupt withdrawal has sparked scepticism among vehicle owners and consumer groups over India's mandatory E20 rollout. The government had moved up its deadline to transition nationwide petrol supplies from E10 to E20, leading to growing consumer complaints regarding reduced fuel efficiency, component corrosion, and compatibility issues in older non-E20 vehicles.