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SIAM withdraws earlier letter to Govt that had flagged chloride-related concerns with E20

SIAM said its earlier warning needs further authentication after oil-marketing companies reported water ingress testing 8 to 12 times a day at more than 87,000 outlets.

  • On Tuesday, The Society of Indian Automobile Manufacturers withdrew an earlier letter to the Petroleum Ministry that had flagged concerns about vehicular corrosion and wear linked to E20 fuel, stating the data required further authentication.
  • The now-withdrawn letter alleged excessive moisture and chloride contamination observed in many cases above 10,000 mg/kg caused immediate vehicle failure, specifically following the 2025 E20 implementation nationwide.
  • Automakers including Maruti Suzuki and Hyundai had initially urged tougher quality controls, while consumer advocate Tehseen Poonawalla, founder of Team Bharat, criticized the government's denial of vehicular damage.
  • The Petroleum Ministry dismissed the fuel concerns as a "misinformation campaign," emphasizing that oil-marketing companies conduct water ingress testing 8-12 times daily at over 87,000 outlets.
  • Moving forward, SIAM plans to authenticate its findings through comprehensive data collection across India, though the group did not specify a completion timeline while maintaining existing measures remain sufficient.
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Auto Components India broke the news on Tuesday, August 4, 2026.
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