Are automakers misleading E20 consumers? | AI With Sanket

The controversy surrounding India's E20 ethanol-blended fuel policy intensified after an old NITI Aayog document surfaced, appearing to contradict the automobile industry's current public position on the safety of E20 fuel for existing vehicles.

Raising questions over consumer trust and policy implementation, The Federal spoke to political commentator Tahseen Poonawalla and automobile expert Dinesh on AI With Sanket, where both panellists argued that consumers deserve greater transparency and the continued availability of E10 fuel for older vehicles.

The discussion centred around excerpts from a June 2021 NITI Aayog report containing submissions made by the Society of Indian Automobile Manufacturers (SIAM). The document stated that discontinuing E10 fuel while introducing E20 in ethanol-surplus regions could create compatibility, performance and safety issues for existing vehicles.

So, how can the same automobile manufacturers who earlier urged caution now publicly assure consumers that E20 fuel is safe for vehicles?

Contradictory positions

The SIAM's representation in the NITI Aayog report warned that many existing vehicles were not designed for E20 fuel. The document said continued availability of E10 fuel was "a must" because older vehicles could suffer from material degradation, leakage, reduced efficiency and drivability issues.

So, what changed between the industry's earlier recommendation and its recent joint press conference with the government, where manufacturers maintained that E20 had been tested and found suitable for vehicles?

Also read: E20 fuel row: Experts question transparency in ethanol rollout | AI With Sanket

Dinesh argued that the concern remained relevant because a significant portion of India's vehicle fleet predates E20-compatible models. According to him, nearly 80 per cent of vehicles currently on Indian roads are not fully compatible with E20 fuel, making an immediate transition problematic.

He said such a shift was originally expected to happen gradually through intermediate blending stages before eventually reaching E20 after newer vehicles became more common.

Mileage concerns

Explaining the engineering perspective, Dinesh said ethanol-blended fuel affects mileage because ethanol contains lower energy content than petrol. While official tests cited a fuel-efficiency reduction of around 4-6 per cent under controlled conditions, he argued that actual mileage losses in real-world traffic could be significantly higher.

He maintained that factors such as congestion, potholes, frequent braking and varying weather conditions increase engine stress, potentially leading to a larger decline in fuel economy than laboratory testing indicates.

Also read: E20 petrol rollout is still an experiment; results expected by next year: Govt to SC

Dinesh argued that mileage is among the first considerations for Indian consumers when purchasing a vehicle. Any reduction, he said, directly impacts household expenses and should therefore not be dismissed as insignificant.

He also questioned whether the projected savings from higher ethanol blending justified the impact on millions of existing vehicle owners.

Consumer trust

Tahseen Poonawalla said the controversy was fundamentally about consumer rights and transparency rather than only technical compatibility.

Referring to the protest organised against the E20 rollout, he said the issue was not that vehicles would immediately break down after using E20 fuel. Instead, he argued that accelerated wear over time still represented a loss for consumers who had purchased vehicles based on specific performance expectations.

Also read: E20 petrol row: India denies Bhutan export claim, documents tell different story

He questioned why instruction manuals for many older vehicles advised against higher ethanol blends if manufacturers now claimed that E20 posed no problem.

According to Poonawalla, manufacturers had earlier cautioned the government against rushing the policy, but had later appeared alongside government representatives endorsing the rollout without adequately addressing concerns relating to vehicles manufactured before 2023.

He argued that consumers deserved clear answers rather than broad assurances about E20-compatible vehicles introduced in recent years.

Impact on two-wheelers

The panel devoted significant attention to two-wheelers, which both guests said would be among the most affected categories if compatibility issues existed.

The NITI Aayog document observed that lower-powered two-wheelers could experience unacceptable drivability problems. Since two-wheelers constitute the majority of India's vehicle population, would the policy disproportionately affects ordinary commuters?

Dinesh agreed, saying millions of motorcycles and scooters sold over the past decade were never designed for sustained E20 usage.

Also read: From mileage loss to rising repair bills: What a survey on E20 fuel found

Poonawalla argued that the debate should not be portrayed as one concerning only car owners. According to him, many lower-income households depend on two-wheelers purchased through loans, making even small increases in operating costs or maintenance burdens financially significant.

Need for E10

Both guests repeatedly argued that the simplest immediate solution would be to continue supplying E10 fuel alongside E20.

Poonawalla suggested introducing blender pumps capable of dispensing different ethanol blends, noting that similar technology is already used internationally.

According to him, consumers should be allowed to choose between E0, E10 and E20 depending on their vehicle specifications until India's infrastructure and vehicle fleet become fully compatible with higher ethanol blends.

Dinesh also maintained that introducing E20 before completing the necessary transition infrastructure had created avoidable uncertainty.

Questions over policy

The discussion also touched upon wider concerns surrounding the government's transport policy.

Responding to a question on whether the E20 rollout could indirectly encourage adoption of electric vehicles, Dinesh said any transition should occur only after the supporting ecosystem becomes adequately developed.

Also read: Centre never called E20 fuel programme an ‘experiment’ in SC: Attorney General's office

He referred to conversations with electric vehicle users about charging costs and infrastructure challenges, while also raising concerns over dependence on imported battery supply chains.

Poonawalla stressed that future policy changes should involve greater consultation with citizens instead of sudden implementation.

He said governments should clearly communicate long-term roadmaps and provide consumers with sufficient time to adapt before introducing major technological transitions.

Demand for transparency

Coming to the central issue of trust, consumers purchase vehicles based on certified performance figures and manufacturer assurances. If fuel policy changes alter those expectations, manufacturers and policymakers owe consumers clear explanations.

If manufacturers remain confident that E20 causes no additional problems for older vehicles, they should be willing to stand behind those claims by accepting responsibility for any resulting issues. If earlier vehicles were already fully compatible with higher ethanol blends, why did manufacturers introduce E20-compliant vehicle models?

The panel called for greater transparency, including making technical reports publicly available instead of allowing important documents to emerge through leaks.

Also read: Will ethanol-blended fuel ruin your engine? India's ethanol push explained

Poonawalla further urged authorities to address complaints from vehicle owners facing genuine problems rather than dismissing public concerns.

The discussion ended with a renewed call for restoring E10 availability, improving transparency around technical studies and ensuring that consumer confidence remains central to future fuel policy decisions.