Indian court orders Maruti to replace car in first E20 fuel damage ruling

In a ruling that could expose automakers to greater liability over India's ethanol-blended fuel policy, a consumer court has ordered Maruti Suzuki to provide a new car to a customer who alleged mandatory E20 fuel damaged his vehicle.

The first-of-its-kind ruling is likely to be closely watched, as legal experts said it could embolden other vehicle owners who believe the fuel has caused problems with their cars to seek compensation.

Prime Minister Narendra Modi's government and automakers — including Maruti — have in recent weeks defended last year's rollout of so-called E20 fuel, which has 20 per cent ethanol, saying it is safe for all vehicles.

The E20 programme, intended to reduce crude oil imports and cut emissions, has become one of the administration's biggest political challenges, with critics alleging the policy was rolled out too quickly and without offering motorists alternative fuel choices.

Hearing the plea of a doctor who alleged the fuel caused damage to his car, a consumer court in the state of Chhattisgarh said Maruti must offer a new replacement of its Grand Vitara SUV or 2 million Indian rupees (AED 76,000) in damages.

Maruti, India's biggest carmaker, denied the allegation and told the consumer forum that the defects stemmed from use of adulterated fuel.

Judges did not agree, according to a court order issued this week that went viral online on Thursday.

In a statement to Reuters, Maruti Suzuki said it will challenge the verdict.

"The car in this case was an E20 compatible car, fully equipped to handle E20 fuel and so disclosed in the owner’s manual," it said.

Harsh Gursahani, a partner at Indian law firm PLR Chambers, said the ruling could prompt a number of other consumers to file cases, "which will be a big headache for Maruti and other automakers".

The judgment quickly fuelled criticism online, with motorists questioning earlier assurances from Maruti that E20 fuel was safe.

Maruti said earlier this month its checks on older cars manufactured ​before 2023 "have not found anything ‌of ⁠concern".