India's leading automobile manufacturers publicly supported the government's rollout of E20 (20% ethanol-blended) petrol, but internally expressed serious concerns over possible fuel contamination. The companies involved include Maruti Suzuki, Tata Motors and Mahindra & Mahindra.

The automakers reportedly collected and tested more than 250 E20 fuel samples from 21 Indian states and Union Territories over the past year. The tests found chloride levels exceeding government limits in 18 states, while moisture levels were also above permissible standards in several locations. Internal discussions warned that excessive chloride could damage engine components, while high moisture content could cause vehicles to stall soon after refuelling.

Following these findings, the Society of Indian Automobile Manufacturers (SIAM) submitted a letter to the Indian government on July 28 highlighting concerns over fuel contamination. However, the industry body later withdrew the complaint, stating that some of the data required further verification. Internal communications reportedly did not indicate any doubts about the reliability of the test results.

The Ministry of Petroleum and Natural Gas and state-owned fuel retailers have maintained that recent government testing found E20 petrol meets prescribed quality standards and that there is no evidence of widespread contamination. Mahindra disputed parts of the reported findings, while Maruti Suzuki and Tata Motors did not immediately comment.