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Indian automaker says ethanol fuel can damage mileage, but is safe because motorists complain

Author: Aditi Shah

New Delhi (Reuters) Fuel mixed with 20% ethanol in India will damage the vehicle’s mileage by 2%-4%, but can be used safely, a lobby group representing the country’s automakers.

India set 20% ethanol in fuels (E20) at 20% target a few years ago, as part of Prime Minister Narendra Modi’s focus on clean energy. But in recent weeks it has become the only option for nearly any fuel station, leading to a driver’s impact on vehicle performance and durability, especially for older cars.

PK Banerjee, executive director of the Indian Automobile Manufacturers Association (SIAM), reduced mileage with E20 fuel in old cars, but it is not a safety risk.

“Millions of vehicles have been driving on the E20 for quite some time. There is no single vehicle failure or engine failure,” Banerjee said. He added that if there is a problem, the company will receive the full honors of the company.

Siam represents India’s major automakers, including Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors and Toyota Motor.

More than a dozen executives from auto companies, fuel retailers and industry groups appeared on the stage to solve media problems on India’s ethanol-mixed gasoline program.

Banerjee said the unfounded claim that fuel efficiency has dropped by 50%. He said that scientific research conducted in controlled environments showed a 2%-4% reduction, the first time it was reduced.

However, driving in the real world can lead to higher mileage drops due to various factors.

“On the road, it can be very different because of the maintenance and drive of vehicles,” said CV Raman, member of the executive committee of Maruti Suzuki, India’s largest automaker.

India has been gradually introducing E20 fuel since 2023, but also offers older blends such as the E5 and E10, which are often considered compatible with older vehicles.

However, these older fuel mixtures have now been removed from almost all 90,000 fuel stations in the country, giving drivers only one option – a decision unlikely to change.

Fearful drivers have entered social media in recent weeks over concerns about massive decline in fuel efficiency and confusing automaker statements. Carmakers first said that the E20 fuel has not been tested for compatibility with older vehicles, but later backtracked to say safe use.

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