Latest news with #E-20
News18
7 days ago
- Automotive
- News18
Better Acceleration, Ride Quality, Farm Income: Centre Addresses Concerns Over E20 Petrol
The Ministry of Petroleum defended 20% Ethanol Blended Petrol, citing reduced pollution, better acceleration, and improved ride quality. The Ministry of Petroleum and Natural Gas (MoPNG) on Tuesday issued a detailed response addressing concerns raised on the impact of 20% Ethanol Blended Petrol (E-20) on mileage and vehicle life, particularly in older vehicles and customer experience. The ministry backed the usage of E20 petrol, saying that the move will not only help reduce pollution and save money on oil imports, but also will lead to better acceleration and even ride quality. While dismissing the claims that mileage was significantly hit because of E20 petrol, the MoPNG asserted that its use gives 'better acceleration, better ride quality and lowered carbon emissions by approximately 30 percent as compared to E10 fuel". 'The use of E-20 gives better acceleration, better ride quality and most importantly, lowered carbon emissions by approximately 30% as compared to E10 fuel. Ethanol's higher-octane number (approximately 108.5 compared to petrol's 84.4) makes Ethanol-blended fuels a valuable alternative for higher-octane requirements that is crucial for modern high-compression engines," the statement said. Terming claims of reduction in fuel efficiency 'misplaced", the ministry said, 'Vehicle mileage is influenced by a variety of factors beyond fuel type. These include driving habits, maintenance practices such as oil changes and air filter cleanliness, tyre pressure and alignment, and even air conditioning load." 'Concerns related to performance and mileage being raised now were anticipated as early as 2020 by the Government and an Inter Ministerial Committee (IMC) of the NITI Aayog examined them at length. This was also backed by research studies carried out by IOCL, ARAI and SIAM," the statement mentioned. 'Extensive discussions have been carried out with the Society of Indian Automobile Manufacturers (SIAM) as well as prominent manufacturers of vehicles. The efficiency drop (if any) in E10 vehicles has been marginal. For some manufacturers, vehicles have been E20 compatible from as far back as 2009. The question of any drop in fuel efficiency in such vehicles does not arise," it added. In the detailed statement, the government further said that moving to E20 fuel is part of India's commitment to meeting its climate goals and achieving net zero emissions by 2070. 'A study on life cycle emissions of Ethanol done by NITI Aayog has said that GHG (greenhouse gas) emissions in the case of use of sugarcane and maize-based ethanol are less by 65% and 50%, respectively than those of petrol," the ministry said. The statement further highlighted how the rural economy has witnessed benefits due to the shift to E20 fuel, which the ministry claimed has increased the farmers' incomes, thereby helping curb suicides. 'More income to farmers has not only contributed to furthering their well-being but has also helped decisively tackle the challenge of suicides by farmers. It may be recalled that in areas like Vidarbha, farmer suicides were widespread a few years ago," it added. The ministry cited the example of Brazil, saying that it has been using E27 (fuel with 27 percent ethanol) for several years and has not faced any issues. It also said that many of the manufacturers, whose cars are bought and sold in India, including Toyota, Honda, and Hyundai, sell vehicles in Brazil as well. On the issue of increased wear and tear, the statement said, 'In most parameters, including drivability, startability, metal compatibility, plastic compatibility, there are no issues. Only in case of certain older vehicles, some rubber parts and gaskets may require replacement earlier than in the case non non-blended fuel. This replacement is inexpensive and can be easily managed during routine servicing. It may need to be done once in the lifetime of the vehicle and is a simple process to be carried out at any authorised workshop." The Centre also addressed another concern that this fuel should be sold at a cheaper price as compared to regular fuel. The ministry said that the 'weighted average price" of ethanol is now higher than the cost of refined petrol. 'Despite the increase in price of ethanol in comparison to petrol, the oil companies have not gone back on the ethanol blending mandate because the programme delivers on energy security, boosts farmers' incomes and environmental sustainability," it said. The ministry further assured that the insurance claims will not be impacted by the E20 switch. It further responded to apprehensions about a rapid switch to fuels consisting higher ethanol levels, saying that the process requires extensive consultation. '…the current roadmap commits the government to E-20 up to 31.10.2026. Decisions for beyond 31.10.2026 will involve submission of the Report of the Inter Ministerial Committee, evaluation of its recommendations, stakeholder consultations and a considered decision of the government in this regard. That decision is yet to be taken," it said. view comments Location : New Delhi, India, India First Published: August 12, 2025, 19:52 IST News india Better Acceleration, Ride Quality, Farm Income: Centre Addresses Concerns Over E20 Petrol Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
11-08-2025
- Automotive
- Business Standard
E-20 compliance and insurance claim: Here's what you need to know
As more and more fuel stations start rolling out E-20 fuel (petrol blended with 20 per cent ethanol), consumers are debating its benefits and drawbacks. Over the past few weeks, social media has been flooded with posts about E20 fuel after several motorists reported lower mileage and suspected engine issues. While the government insists the impact on vehicles was marginal, insurance experts warn that there's another risk that's not getting enough attention, your motor insurance claim. Concerns around claim rejection Standard motor insurance policies in India often exclude damage caused by 'wrong fuel use.' This means if your vehicle isn't E20-compliant and suffers engine damage linked to E20 fuel, your insurer could deny or reduce your claim. 'Policies often exclude damage from using incorrect fuel types,' says Paras Pasricha, head of motor insurance at Policybazaar. 'If an investigation finds that E20 caused the damage in a non-compatible vehicle, insurers might deny or scale down the claim,' Pasricha said. Rahul Mathur, chief executive officer of Roinet Insurance Brokers, adds that even engine protection cover may not help. 'Some insurers consider using the wrong fuel as gross negligence, which is grounds to void a claim. Even if the owner didn't know their car wasn't compatible, it may not work in their favour during a dispute,' he said. Surender Tonk, vice-president of the Insurance Brokers Association of India, says there have been cases of claims being rejected for this reason. 'Insurers follow manufacturer guidelines. If your vehicle isn't certified for E20, you risk losing the claim,' he notes. Why fuel compatibility matters While most policy documents don't explicitly mention ethanol blends, they do include general clauses about taking reasonable care of the vehicle. According to all three experts, using a fuel blend not approved by the manufacturer could fall under 'gross negligence,' making the insurer legally entitled to refuse payment. Steps to protect yourself Experts advise: As the government rolls out E20 nationwide, motorists need to look beyond mileage debates. The wrong fuel might not just harm your engine, it could also leave you with a hefty repair bill that your insurer won't cover.
Business Standard
16-06-2025
- Automotive
- Business Standard
Passenger vehicle sales grow 3.9% in April 2025, reports SIAM
The Society of Indian Automobile Manufacturers (SIAM) has released the Auto industry data for the month of April 2025. As per SIAM, the total production of Passenger Vehicles1, Three Wheelers, Two Wheelers, and Quadricycle in April 2025 was 2,318,882 units. The passenger vehicle sales for April stood at 3,48,847 units. Three-wheeler sales were 49,441 units in April 2025 and two-wheeler sales were 1,458,784 units. According to SIAM, passenger vehicles segment posted its highest ever sales of April in 2025 of 3.49 Lakh units, with a growth of 3.9% as compared to April 2024. Three-Wheelers de-grew marginally by (-) 0.7% compared to April of previous year, with sales of 0.49 Lakh units. The Two-Wheeler segment de-grew by (-) 16.7% in April 2025, as compared to April 2024, with sales of 14.59 Lakh units, due to high base effect of April last year, while it is likely to pick up in coming months. Auto industry smoothly transitioned to the new regulatory regime of 2nd stage of On-Board Diagnostics (OBD) 2 regulation for Two and Three Wheelers from April 2025 onwards, in addition to rolling out E-20 compliant gasoline vehicles across the country from this month, SIAM said in the report.
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Business Standard
16-06-2025
- Automotive
- Business Standard
Passenger vehicle dispatches dip marginally in May, two-wheelers edge up
Passenger vehicle dispatches were down by 0.8 per cent to 344,656 units Sohini Das Mumbai Passenger vehicle (PV) dispatches declined marginally in May after posting a 4 per cent growth in the previous month, while two-wheeler (2W) dispatches were up by a meagre 2.2 per cent during the month. According to data from the Society of Indian Automobile Manufacturers (SIAM), PV dispatches were down by 0.8 per cent to 344,656 units. Industry watchers said that high dealer inventory has put pressure on dispatches. PV retail sales in May were down by 3.1 per cent year-on-year and 13.6 per cent month-on-month. The Federation of Automobile Dealers Associations (FADA) has said earlier this month that PV inventory day has climbed to 52-53 days. 'Elevated inventory days and subdued consumer sentiment—particularly in entry-level models—compounded by war-related tensions for border-state (J&K, Punjab, Rajasthan, Gujarat) and margin-money challenges; healthy bookings offset by weak retail conversions,' FADA had said. Rajesh Menon, director general of SIAM, said that all vehicle segments posted stable performance in May – PV dispatches at 344,656 units, which is the second highest-ever May sales. Three wheelers were down by 3.3 per cent compared to May last year, and two-wheeler dispatches were up 2.2 per cent. Going forward, the RBI's three repo rate cuts totalling 100 basis points in less than six months, along with a forecast of above-normal monsoons are some of the indicators which should positively impact the auto sector by improving affordability and boosting consumer sentiment in the coming months,' Menon said. Interestingly, the utility vehicle (UV) segment has grown in May – dispatches rising by 7.6 per cent, while passenger car dispatches were down by 12.2 per cent. Two-wheeler performance has turned around – selling 1.65 million units, registering a 2.2 per cent growth. In April the two-wheeler sales had disappointed, dropping by 16.7 per cent to 1.45 million. Menon had said that the two-wheeler segment decline in sales was due to the high base effect of April last year, and it is expected to pick up in the coming months. 'Auto industry smoothly transitioned to the new regulatory regime of 2nd stage of On-Board Diagnostics (OBD) 2 regulation for two and three wheelers from April 2025 onwards, in addition to rolling out E-20 compliant gasoline vehicles across the country from this month,' he added. Within 2W, the motorcycle segment is flat at 1.03 million, while scooter sales have grown by 7.1 per cent. Three-wheeler segment has continued to post a decline in sales for the second consecutive month this fiscal. In April, the 3W segment had fallen by 0.7 per cent, and in May the dispatches had shrunk by 3.1 per cent Y-o-Y.
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Business Standard
15-05-2025
- Automotive
- Business Standard
Passenger vehicles sales up 4% in April, two-wheeler despatches fall
Passenger vehicle sales to dealers grew nearly 4 per cent in April, led by demand for utility vehicles (UV), data provided by an industry body showed on Thursday. Two-wheeler sales dropped 16.7 per cent to 1.45 million units, according to the Society of Indian Automobile Manufacturers (SIAM). Three-wheeler sales declined 0.7 per cent to 49,441 units after posting good numbers in 2024-25. The passenger vehicle (PV) segment posted its best April sales (348,847 units) as it grew by 3.9 per cent compared to the same month last year, said Rajesh Menon, director general of SIAM. Two-wheeler sales declined due to the high base effect of April 2024 and are expected to pick up over months. 'The auto industry smoothly transitioned to the new regulatory regime of On-Board Diagnostics II (OBD II) for two- and three-wheelers from April 2025 onwards, in addition to rolling out E-20 compliant gasoline vehicles across the country,' he said. Car sales dropped by 5.4 per cent in April and that of UVs grew 12.1 per cent. The break-up does not include Tata Motors' sales. JSW, Kia and Toyota Kirloskar Motors reported strong domestic PV sales, while Hyundai Motor India Ltd (HMIL), Maruti Suzuki India and Nissan registered did so in exports. PV exports increased by 20 per cent in April amid geopolitical tensions. Tarun Garg, chief operating officer of HMIL, said earlier in May that the domestic automobile market "continues to face headwinds on account of various macroeconomic factors" and his company is focusing on exports. Among two-wheelers, motorcycle sales to dealers suffered the most, declining by 22.7 per cent. Scooter sales declined by 5.7 per cent. Sales by Bajaj Auto and Hero MotoCorp fell 13 per cent and 44 per cent, respectively, in April. Hero paused production at four facilities from April 17-19 to facilitate supply-chain alignment and make scheduled maintenance. 'Normalisation' is expected in May, it has said. The Federation of Automobile Dealers Association said last month that while two-wheeler dealers expect a boost from festive buying and demand during the wedding season, it was wary of rising OBD II costs, weak rural liquidity, and competition from electric vehicles. Two-wheeler exports increased by almost 15 per cent in April, according to SIAM.
