New Delhi – The Society of Indian Automobile Manufacturers (SIAM) has reassured motorists that India’s E20 fuel, a blend containing 20% ethanol, is safe for use in all vehicles despite concerns over performance.

SIAM executive director P.K. Banerjee stated on Saturday that while the fuel may lower mileage by 2–4%, it does not cause engine damage or pose safety risks.

“Millions of vehicles are plying on E20 for quite some time now. Not a single vehicle breakdown or engine failure has been reported,” Banerjee said at a press briefing, urging drivers not to believe claims of a 50% drop in fuel efficiency, which he dismissed as “misinformed”.

Industry backs ethanol programme

The ethanol blending programme, introduced under Prime Minister Narendra Modi’s clean energy initiative, aims to reduce carbon emissions, curb crude oil imports, and boost income for sugarcane farmers.

India had previously offered lower ethanol blends, like E5 and E10, which were considered more compatible with older vehicles. However, these have now been phased out across most of the country’s 90,000 fuel stations, leaving motorists with only E20 fuel.

C.V. Raman, an executive committee member at Maruti Suzuki, said mileage could vary further in real-world conditions depending on driving habits and vehicle maintenance.

Consumer backlash and legal challenge

Despite assurances, many motorists have expressed frustration on social media over the sudden removal of older fuel options and the potential impact on fuel economy. Automakers initially claimed that E20 fuel had not been fully tested on older vehicles, only to retract these statements later, which added to public confusion.

A Public Interest Litigation (PIL) challenging the mandatory use of E20 fuel is set to be heard in the Supreme Court on Monday, highlighting the growing debate over consumer rights and environmental policy.

Economic and environmental impact

India, the world’s third-largest car market, has been gradually expanding ethanol blending since 2023. Officials say the transition will save thousands of crore rupees annually in crude oil imports and support the country’s climate targets.

Automakers present at the event assured that warranty and insurance claims would be honoured in case of any issues arising from E20 usage, attempting to calm customer concerns.

Outlook

While experts agree the programme is critical for energy sustainability, they stress the need for better public communication and gradual rollout to ensure motorists adjust smoothly to the changes.

Industry analysts believe that as more ethanol-compatible vehicles are launched, concerns over mileage and compatibility will fade, and India will achieve its 2025 ethanol blending target without major disruptions.