Page 59 - Policy & Economic Report - July 2025

POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

Claim 5: Mileage will collapse.

Government studies and automobile manufacturers have consistently explained that fuel efficiency
depends on multiple factors, including:
• driving habits,
• traffic conditions,
• vehicle maintenance,
• tyre pressure,
• air-conditioner usage.

For certain older E10-designed vehicles, any reduction in fuel economy is generally limited to about
3-5%, not the exaggerated figures being circulated.

At the same time, E20 provides:
• higher octane rating, superior anti-knock characteristics,
• cleaner combustion, smoother engine performance,
• better acceleration and ride quality.

Claim 6: Manufacturers are being forced to support E20.

Had automobile manufacturers not been satisfied with the scientific validation, they would neither
• have certified E20-compatible vehicles,
• nor continued to honour warranty obligations.

Manufacturers continue to honour warranties for vehicles operating on specification-compliant E20
fuel because they have confidence in the extensive testing that preceded the rollout.

Claim 7: Automobile companies are under Government pressure to hide the truth about E20.

• India's automobile manufacturers are independent listed companies with legal and regulatory
obligations to their customers.

• They cannot conceal widespread vehicle defects without exposing themselves to warranty claims,
product liability, regulatory action and serious reputational damage.

• Manufacturers continue to honour warranties for E20-compatible vehicles, something they would
not do if they believed E20 was causing systemic engine damage. Warranty decisions are based
on engineering validation and field experience and not political considerations.

• The industry's position has also been expressed publicly and transparently. On 4 July 2026, senior
executives from Toyota Kirloskar, Maruti Suzuki, Hero MotoCorp, Hyundai Motor India, TVS
Motor Company and Bajaj Auto jointly addressed the media. They reaffirmed that E20 was
introduced only after rigorous testing and extensive validation.

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