SIAM withdraws letter on E20 fuel damage concerns

India's main automobile industry body has withdrawn a letter it sent to the government warning of vehicle damage linked to contaminated ethanol-blended fuel, stating the data cited requires further verification. The Society of Indian Automobile Manufacturers (SIAM) issued a clarification late on August 4, 2026, saying the communication was part of routine technical discussions and that the figures mentioned need authentication.

The now-withdrawn letter, dated July 28 and addressed to the Ministry of Petroleum and Natural Gas, had described a significant increase in customer complaints about damaged vehicle parts following the introduction of E20 fuel, which contains 20% ethanol. According to the letter, members reported issues with fuel injectors, fuel pumps, exhaust systems, and other components. Field investigations reportedly traced the failures to corrosion and wear caused by high chloride levels in the fuel, with the problems said to have increased specifically after the E20 policy's implementation.

The letter also flagged concerns over excessive moisture in E20 fuel at retail outlets, stating that moisture content above 1% could cause fuel separation and immediately...