Auto Industry Assures Warranty Cover for Older Vehicles Using E20 Fuel

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 at a press meet to address consumer concerns on E20 fuel usage on Saturday.

As India advances its ambitious ethanol-blending program, the transition to petrol blended with 20% ethanol (E20) has raised concerns among consumers, particularly those who own older vehicles. A primary worry is that potential damage and performance issues resulting from the use of E20 fuel may not be covered under the manufacturer's warranty, leaving owners to bear the cost of repairs.

Some consumers have highlighted that the fuel requirements for some older vehicles explicitly prohibit the use of petrol with an ethanol blend exceeding 10%. This has led to worries that potential vehicle damage and performance issues from the use of E20 fuel may leave owners to bear the cost of repairs. Beyond worries about a shortened engine lifespan and the potential for expensive repairs, there are also significant concerns that E20 fuel could cause a drop in fuel economy.

The issue escalated when a Public Interest Litigation (PIL) was filed 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 E20 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 E20.