Amid concerns about the warranties of older vehicles on problems arising from the use of E20 fuel, the auto industry clarified that vehicle makers will honour the warranties for older vehicles using E20 fuel, irrespective of what the user manual says. Senior executives of the Society of Indian Automobile Manufacturers (SIAM), which represents vehicle manufacturers in India, clarified this on Saturday.
The clarification comes as the debate over the introduction of E20 fuel intensifies. Launched in April 2023 by the Indian government as part of its push for sustainability and reducing carbon emissions, the E20 blend, which consists of 20% ethanol and 80% petrol, has faced strong opposition, especially from users of older, non-E20-compatible vehicles. Many have reported a noticeable drop in mileage, with some users expressing dissatisfaction over the mandated switch to E20 without an option for pure petrol.
Many questions are raised on E20 usage such as reduction of mileage and no reduction in the price of the E20 petrol. Consumers are asking as to what benefit they may have after using petrol blended with 20% ethanol. However, the government has put the net zero emission target and lower crude oil imports as its agenda.
The issue escalated when advocate Akshay Malhotra filed a Public Interest Litigation (PIL) in the Supreme Court, challenging the government’s ethanol blending mandate. The PIL, scheduled to be heard by a bench led by Chief Justice BR Gavai on September 1, 2025, seeks to give consumers the choice of E0 petrol at fuel stations, alongside mandatory labelling of ethanol content. The petition also aims to ensure that the shift to E20 doesn’t unfairly burden users with vehicles that aren’t designed to handle higher ethanol blends.
The controversy has sparked a series of clarifications from the government. The Ministry of Petroleum and Natural Gas recently issued a statement on social media, explaining that the introduction of E20 could cause a marginal decrease in mileage—1-2% for vehicles calibrated for E10 and up to 3-6% for those not designed for ethanol blends.
The debate highlights the balancing act India faces between meeting environmental sustainability goals and addressing the practical challenges consumers and the automobile industry face as they navigate the shift to E