Maruti, Tata, Mahindra flagged E20 fears to auto manufacturers body

Maruti Suzuki, Tata Motors and Mahindra have raised concerns about the quality of E20 petrol, according to internal communications reviewed by Reuters. These concerns, which predate a recent withdrawal of a formal complaint by the Society of Indian Automobile Manufacturers (SIAM), highlight growing unease within the auto sector over potential contamination in the ethanol-blended fuel. The companies reportedly identified high levels of chloride and moisture in E20 samples, which they claim could affect vehicle performance. The controversy surrounding E20 intensified after the government assured the public last week that the fuel was safe for use. Shortly thereafter, SIAM, representing major automakers, withdrew a complaint it had filed with the government a week earlier, citing the need for further verification of certain data points. This move followed widespread public and governmental backlash against the initial warning. The withdrawn letter, however, had already been circulated internally among key automakers, revealing their private apprehensions about fuel quality. Internal emails obtained by Reuters show that Maruti, Tata and Mahindra had been discussing these concerns in detail before the official complaint was withdrawn. The documents suggest that the three companies had conducted extensive fuel testing, collecting over 250 samples from retail stations across 21 of India’s 36 states and union territories. Their findings indicated high chloride contamination in samples from 18 states, alongside elevated moisture levels in the fuel. These results, though not officially released, underscored the automakers’ worries about the long-term effects of E20 on vehicle reliability. Despite these findings, the automakers’ internal discussions did not question the validity of the data. Instead, they focused on the implications of the contamination for vehicle performance. The emails revealed that Maruti’s senior executive, Anoop Bhat, had raised specific concerns about the chloride levels, noting that the issue had been privately discussed with the petroleum minister. This suggests that the automakers were aware of the problem and had attempted to address it directly with authorities. The government responded to the controversy by asserting that its oil marketing companies had initiated rigorous testing of E20 fuel at retail outlets. According to the ministry, only four instances of contamination were found during these tests, and state-run fuel retailers confirmed that extensive random and scientific evaluations had shown no cause for alarm. However, the automakers argue that the government’s response fails to acknowledge the broader scale of the issue. SIAM defended its actions, stating that the withdrawn complaint was based on preliminary data collected by a small number of automakers. It emphasized that the data had not undergone proper validation or authentication by the wider industry. The association also noted that the testing methodology and sample size were insufficient to draw conclusive findings, hence the decision to withdraw the communication. SIAM has pledged to conduct a more thorough scientific study on the matter. Meanwhile, Mahindra has dismissed the claims made in the internal emails, calling them "completely baseless and incorrect." The company argues that the data is limited and preliminary, and that there are no significant issues with E20 fuel. Maruti and Tata have not yet commented on the matter, leaving the situation open to interpretation. Consumer complaints have continued to mount since E20 became the sole available petrol option in early April. Hundreds of drivers have reported reduced vehicle mileage, increased mechanical wear and even instances of vehicles failing to start after refueling. At least one legal challenge has been launched against the fuel’s use, highlighting the growing public discontent. With the auto industry divided between public support for the government’s environmental goals and private concerns over fuel quality, the situation remains unresolved.