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E20 worries Indian carmakers

PTI
Updated: August 13th, 2026, 23:00 IST
in Business, National
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E20 petrol
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New Delhi: Hours after India made public assurances last week that ethanol-blended petrol was safe, the country’s main auto lobby withdrew a complaint about fuel contamination it had sent to the government a week earlier, saying some figures needed more checks. But separate communications between industry executives, reviewed by Reuters, showed that in the preceding days, top automakers Maruti Suzuki, Tata Motors and Mahindra had discussed concerns about contamination of petrol blended with 20% ethanol (E20).

Their data represented the most comprehensive fuel testing conducted by the industry since the Centre began rolling out E20 nationwide last year to curb pollution and cut oil imports. With no other petrol available since April 1, consumer concerns have grown about the impact on vehicle performance. The carmakers’ emails show for the first time how they were privately worried about contaminants such as chloride and moisture in E20, which they said were hurting vehicles, even as they publicly backed the government’s rollout.

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The Society of Indian Automobile Manufacturers (SIAM) withdrew its July 28 letter on fuel contamination after a government and public uproar, saying “some numbers” needed “authentication”. The previously unreported industry data and emails reviewed by Reuters showed “multiple” automakers had conducted extensive tests, collecting more than 250 fuel samples from pumps over a year across as many as 21 of India’s 36 states and UTs. They found high chloride contamination in many samples from 18 states, as well as high moisture content. The executives’ emails raised no concern about data authentication.

SIAM told Reuters the data was intended only for internal circulation, discussion and validation, and had been collected by “very few” automakers. Maruti, Tata and Mahindra, which accounted for 67% of India’s car market, were part of the SIAM internal emails reviewed by Reuters. “As the testing basis and sample size were insufficient to support definitive conclusions, the communication was withdrawn” as it was sent inadvertently, SIAM said, adding that it intended to undertake a proper scientific study. The Ministry of Petroleum and Natural Gas did not respond to requests for comment.

Its minister, Hardeep Singh Puri, said Friday that oil marketing companies had begun “rigorous testing” of fuel at retail outlets two weeks before receiving the SIAM letter. Only four cases of contamination were found, he said. State-run fuel retailers also said extensive random and scientific tests showed “no cause for any alarm on account of fuel contamination”.

Mahindra said conclusions drawn from its executive’s emails “are completely baseless and incorrect”, that industry data was limited and preliminary, and that it did not see issues with E20. E20 has angered motorists, with hundreds alleging it has reduced mileage and increased wear and tear on their cars, and triggered at least one court challenge. SIAM had earlier said high chloride levels were corrosive to auto parts, while high moisture levels in fuel could immobilise a vehicle immediately after fuelling. In group emails among Maruti, Tata, Mahindra and SIAM, Maruti senior executive Anoop Bhat raised concerns about high chloride findings, saying the issue had been privately discussed with the petroleum ministry July 26. Industry tables showed chloride levels of 6 to 570 parts per million (ppm) in Rajasthan, 1.4 to 420 ppm in New Delhi and 10 to 357 ppm in Maharashtra. The government says the permissible limit is 3 ppm.

Moisture levels reached 13,000 ppm in Andhra Pradesh and 12,500 ppm in Uttar Pradesh, compared with a government benchmark of 3,000 ppm. The cause of contamination is unknown. SIAM said, in its now-withdrawn letter, it had seen an increase in chloride levels since E20’s rollout and asked the government to direct oil marketing companies to identify the root cause. For moisture, it cited inadequate “maintenance of the underground storage tanks and pipelines at retail outlets”. Bhat wrote July 26 that 1 ppm of chloride was the maximum current fuel injectors “can tolerate”. Mahindra’s senior principal engineer of fluids technology, R Ramaprabhu, wrote organic chloride was responsible for rapid vehicle failures the industry is seeing and could spoil engines “within 200 km”. He said Mahindra had “strong evidence” of fuel sample data from retail outlets. Maruti, Mahindra and Tata did not respond to requests for comment.

 

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