Auto industry fully supports E20 initiative, says SIAM

SIAM has emphasised that the Indian automobile industry is fully supportive to the Government of India's E20 initiative.

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SIAM has emphasised that the Indian automobile industry is fully supportive to the Government of India's E20 initiative.
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SIAM has emphasised that the Indian automobile industry is fully supportive to the Government of India's E20 initiative.
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Society of Indian Automobile Manufacturers (SIAM), taking note of certain media reports that cited excerpts from a SIAM communication, with specific and selective focus on chloride and sulphur content in fuel, issued an official statement, clarifying the matter and saying that the Indian automobile industry fully supports the E20 initiative of the government.

In a press release, SIAM has stated that fuel quality testing under the prevailing regulatory framework is a rigorous and comprehensive process, covering more than 150 parameters and is undertaken by oil marketing companies (OMCs).

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SIAM also said that some numbers quoted in the communication need authentication through collection of elaborate data from various regions across the country, followed by a comprehensive consultation with our member OEMs. In its official release, SIAM further stated that MoPNG has also instituted 3 ppm guidelines for chloride/sulphur as a precautionary measure for all ethanol being blended into the petrol supply chain. "All of these steps fully meet the needs of the automobile industry. Further, we understand from OMCs that checks have been instituted, including water ingress testing about 8-12 times a day in over 87,000 outlets & after each instance of rain near petrol pumps", the apex automobile industry governing body said.

SIAM also said that it would like to reassure consumers and the general public that the automobile industry has always been fully supportive of the E20 initiative of the Government of India. It further stated there is no cause for concern, as these issues have been routinely addressed over the past several decades between the auto Industry and OMCs.

SIAM's statement comes at a time when the E20, which is 20% ethanol blended petrol, has been creating quite a debate among consumer groups, raising concern about the impact of the fuel on older vehicles.

No policy to incentivise flex-fuel vehicles: MHI

Meanwhile, the Ministry of Heavy Industries (MHI) said it has not formulated any separate phased national policy to incentivise flex-fuel vehicles operating on fuel blended with more than 20% ethanol. The MHI also stated that it has not conducted any study regarding incentivisation of flex-fuel and electric vehicles, reported PTI.

The Centre has defended its ethanol blending programme, saying extensive testing and large-scale field experience had found no evidence that E20 petrol causes abnormal engine wear, corrosion or reduced vehicle life. It has argued that the ethanol-blending programme has strengthened India's energy security and helped cushion consumers from global oil price volatility. "The government has adopted a balanced approach to the Ethanol Blended Petrol (EBP) Programme, ensuring that water sustainability, food security and farmers' interests remain paramount," said MHI.

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First Published Date: 05 Aug 2026, 09:00 am IST
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