Automakers Will NOT Deny Warranty For Damage Caused Due To E20 Petrol Usage: SIAM And ARAI
Recently, a number of automakers told their existing customers that they recommend avoiding the use of E20 fuel. However, during the latest SIAM (Society of Indian Automobile Manufacturers) and ARAI (Automotive Research Association of India) press conference, it was stated that there will not be any warranty- and insurance-related changes due to the use of E20, or 20 percent ethanol-blended fuel.
SIAM and ARAI’s press conference on E20 fuel
Recently, SIAM and ARAI organized a meet on India's Ethanol Blended Petrol Programme in New Delhi. This event was attended by officials of the leading automakers in the country, along with officials of oil companies in India.
The main highlight of this conference was the announcement stating that no warranty from any automaker will be voided due to E20 use. The officials stated that no automaker or insurance agency will change any of the terms and conditions, and the warranties will remain the same as before.
It was added that automakers will honor all the warranties. In addition to this, it was also highlighted that there have been a lot of complaints regarding a higher drop in fuel efficiency due to ethanol usage. So, ARAI stated that it will surely address the drop in fuel efficiency.
E20 Roadmap
During the meet, Indian Oil Corporation stated that the current roadmap for E20, or 20 percent ethanol-blended petrol, will be valid till October 2026. It was added that any decision beyond October 2026 will be based on detailed technical and environmental studies. Also, it will depend on consultations with all stakeholders, including automakers, oil companies, policymakers, and research bodies.
The country's largest automaker, Maruti Suzuki India Limited, has also clarified that so far no issues have been reported in their service network due to ethanol-blended fuel. MSIL stated that they have a customer redressal mechanism where owners facing problems with ethanol can approach them, and the company will address them.
Benefits of ethanol blending programme
In addition to the discussion of the main concerns of Indian consumers, the officials also highlighted the benefits of the ethanol blending programme. As per the officials, farmers are now seen as energy providers, and in 2025 alone, the payment to farmers has reached Rs 40,000 crore.
Also, the sugarcane arrear has been eliminated, and maize farming has been made more viable. Lastly, rural prosperity has directly reduced distress and suicides. It has also been reported that since 2014–15, 245 LMT crude oil has been substituted, and Rs 1.44 lakh crore forex has been saved.
Why has ethanol-blended fuel's price not been reduced?
Another very important point discussed during the meet was about the price of ethanol-blended fuel. It was stated by Indian Oil Corporation that the procurement price of ethanol is much more than the cost of petrol, yet the oil industry is maintaining the same price as earlier.
The procurement price of ethanol, which is paid to sugar mills, grain producers, and others, is fixed by the government to keep farmers profitable. Currently, crude oil imports have gone down, but the savings from this reduction are being used to cover refining and transport costs and to keep petrol prices stable and politically manageable.