Component Industry May Need Newer Materials to Withstand Ethanol Blending

India's auto component industry registered a turnover growth of 12.7 per cent in FY26, matching the broader auto industry's growth story. However, a lurking threat looms, as ethanol-blended fuel could impact vehicle components going forward.

Amid the uproar over E20 fuel issues raised by vehicle owners on social media, Vinnie Mehta, director general of the Automotive Component Manufacturers Association of India (ACMA), said, "We don't have direct visibility of these failures." Vehicle owners typically visit service centres when facing issues rather than approaching component makers directly. Mehta added, "No member or OEM has brought this to our attention as yet."

In an interview with CNBC-TV18, Vikram Pati Singhania, president of ACMA, said the component industry works closely with OEMs, and any changes in components will be driven by the technical requirements identified by them. He said these are still early days, adding, "There's not enough data at this point in time to say whether this will cause damage or how much damage it will cause."

Conversely, a 2021 study by the Automotive Research Association of India (ARAI) has come to light, highlighting the impact of E20 on some plastic and rubber parts used in fuel systems. The study used E20 as the test fuel and E10 as the baseline for comparative assessment, evaluating changes in properties such as strength and hardness in elastomers and plastics. However, social media claims citing E20 as the root cause of mechanical failures remain unproven.

Both executives, at the press conference, assured that they would work with OEMs as and when material requirements evolve. "If there is an enhanced cost, it will come down when volumes increase. We will play with the boundary conditions that are set for us by the government," said Mehta.