Driver claims India’s eco-friendly fuel damaged his car. Court agrees

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

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 carmakers – including Maruti – have in recent weeks defended last year’s roll-out 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 car or 2 million Indian rupees (US$20,800) in damages.