India's Auto Group Takes Back Warning About Ethanol Fuel Damage

India's top car industry group sent a warning to the government saying that a new type of fuel was damaging vehicle parts. But just hours after the news spread to the public on August 4, the group took the warning back. The group said it needed to check its numbers before making any official claims. Many car owners across India were left frustrated and confused by the sudden reversal.

The group that pulled back the warning is called the Society of Indian Automobile Manufacturers, or SIAM. It originally sent its alert to India's Petroleum Ministry on July 28. In its statement pulling back the warning, SIAM said the numbers reported in the media 'need authentication' and that it was withdrawing its earlier message. Neither SIAM nor the Petroleum Ministry quickly responded when asked for more information.

The fuel at the center of the debate is called E20. It is a mix of regular petrol and 20 percent ethanol, which is a type of alcohol made from plants. India switched from a lower blend called E10 to E20 nationwide in 2025, ahead of a 2030 deadline. Prime Minister Narendra Modi's government pushed the change to reduce how much oil India has to buy from other countries.

In its original letter to the ministry, SIAM said the E20 fuel being sold at gas stations had too much chloride and moisture in it. The group said car parts that touched the fuel or engine fumes were showing signs of corrosion, which means they were rusting or wearing out faster than normal. It also warned that too much moisture in the fuel could stop a car from running right after it was filled up. The group asked the government to carry out stricter quality checks on the fuel.

The government pushed back on those claims. On August 4, the Petroleum Ministry said on social media that fuel quality is checked regularly and that only two cases of chloride problems were found out of 2,000 tests. A senior government official, speaking without giving their name, called the fuel concerns a 'misinformation campaign' playing out mostly on social media. The official said there was no real evidence of problems in cars on the road.

Many car owners were not convinced by the government's response or by SIAM's U-turn. The E20 policy had already caused street protests, lawsuits, and widespread anger after it was rolled out at 90,000 fuel stations. Drivers complained about lower fuel mileage and damaged car parts, and many wanted the option to choose a fuel with less ethanol. On social media platform X, one angry user named Nachiket Deshpande asked: 'Did the science change overnight, or did the ministry call?'

The government tried to calm people down before SIAM's warning even became public. It held a press event in July where executives from big car companies like Maruti and Hyundai spoke in support of E20. The government also ran social media campaigns to reassure drivers that the fuel was safe. However, the news of SIAM's private warning made many people feel that the government and car industry were not being fully honest with them.

SIAM said it would gather more detailed data from across the country and hold a full round of talks before releasing any new findings. Its members include some of the biggest car brands in the world, such as Maruti Suzuki, Tata Motors, Toyota, and Mercedes-Benz. The group did not give a timeline for when its new review would be finished. For now, millions of Indian drivers are left waiting for clear answers about whether the fuel in their tanks is safe.