Page 58 - Policy & Economic Report - July 2025

July 2026 POLICY AND ECONOMIC
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If E20 really rendered vehicles unusable, India would have witnessed millions of breakdowns,
warranty claims and service campaigns. Nothing of that sort has occurred.

Claim 3: Automobile manufacturers have privately indicated that E20 is not desirable.

On 4 July 2026, the Ministry of Petroleum & Natural Gas, along with the Ministry of Heavy Industries
and the Ministry of Road Transport & Highways, convened a joint press conference where senior
executives from Toyota Kirloskar, Maruti Suzuki, Hero MotoCorp, Hyundai Motor India, TVS Motor
Company and Bajaj Auto collectively addressed concerns regarding E20. Their position was
unequivocal:
• Toyota Kirloskar stated that E20 was introduced only after rigorous testing on older vehicles,

describing ethanol as a clean, high-performance fuel that has been used globally for decades. It
further emphasised that testing protocols are internationally standardised under UNECE norms
and cannot be compromised.
• Maruti Suzuki gave what it described as a "statement of confidence" to consumers. Based on 2.84
crore vehicles serviced in FY 2025-26, including more than 1.5 crore older vehicles that were not
originally E20-certified, the company reported no E20-related corrosion, abnormal wear, or
reduction in component life. It also clarified that the mileage impact is generally limited to 3–
3.5%, and that everyday factors such as tyre pressure, driving style, maintenance and traffic have
a much larger influence on fuel economy.
• Hero MotoCorp, one of the world's largest two-wheeler manufacturers, stated that analysis of its
extensive service data found no higher incidence of damage in vehicles operating on
E20 compared to earlier fuels.
• Hyundai, TVS Motor Company and Bajaj Auto also participated in the same press conference and
collectively reaffirmed the industry's confidence in the E20 programme. The panel concluded by
reiterating its commitment to the programme and to addressing consumer concerns
transparently.

Claim 4: Older vehicles are at risk.

A leading automobile manufacturer serviced 2.84 crore vehicles during FY 2025-26.
Among them were approximately 1.5 crore vehicles that were never originally certified as E20-
compatible.

Despite this,
• no abnormal corrosion,
• no abnormal wear,
• no reduction in component life was attributed to E20 fuel.

A leading two-wheeler manufacturer has reported similar field experience, while another OEM
tracked 1.4 crore E20-operated vehicles over an extended period and found no evidence of ethanol-
induced corrosion.

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