Indian court orders Maruti Suzuki to replace SUV over alleged E20 fuel damage

An Indian consumer court has ordered Maruti Suzuki to replace a customer’s Grand Vitara SUV or pay 2 million Indian rupees in compensation after the owner alleged that mandatory E20 fuel damaged the vehicle.

The ruling, issued by a consumer court in Chhattisgarh, is the first of its kind linked to concerns over India’s ethanol-blended fuel policy and could encourage similar claims from other motorists.

The case was brought by a doctor who said the use of E20 fuel, which contains 20% ethanol, caused defects in the car. Maruti Suzuki denied the allegation and argued that the problems were caused by adulterated fuel, but the court rejected the company’s position.

Maruti Suzuki said it would 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,” the company said in a statement.

India introduced E20 fuel nationwide last year as part of efforts to reduce crude oil imports and lower emissions. Prime Minister Narendra Modi’s government and automakers, including Maruti, have maintained that the fuel is safe for all vehicles.

The policy has nevertheless faced criticism from motorists who say it was implemented too quickly and without offering consumers an alternative fuel option.

Legal experts said the decision could expose automakers to more compensation claims if other vehicle owners pursue cases over alleged fuel-related damage.

Harsh Gursahani, a partner at PLR Chambers, said the ruling could lead to more consumer complaints, creating legal and financial pressure for Maruti Suzuki and other manufacturers.

Maruti, India’s largest carmaker, said earlier this month that inspections of vehicles manufactured before 2023 had found no issues of concern linked to E20 fuel.