India's auto component industry recorded turnover growth of 12.7% in FY26, in line with growth in the broader automotive industry. However, the increasing use of ethanol-blended fuel could have implications for vehicle components in the future.

Responding to concerns regarding E20 fuel raised by vehicle owners on social media, Vinnie Mehta, Director General of the Automotive Component Manufacturers Association of India (ACMA), said, "We don't have direct visibility of these failures." Vehicle owners typically visit service centres when facing issues rather than approaching component manufacturers directly. Mehta added, "No member or OEM has brought this to our attention as yet."

In an interview with media, Vikram Pati Singhania, President of ACMA, said the component industry works closely with OEMs, and any changes to components would be driven by the technical requirements identified by them.

He said it was still too early to draw conclusions, adding, "There's not enough data at this point in time to say whether this will cause damage or how much damage it will cause."

A 2021 study by the Automotive Research Association of India (ARAI) examined the impact of E20 fuel on certain plastic and rubber components used in fuel systems. The study used E20 as the test fuel and E10 as the baseline for comparative assessment, evaluating changes in properties such as strength and hardness in elastomers and plastics.

However, claims on social media attributing mechanical failures directly to E20 fuel remain unverified. At the press conference, both executives stated that they would work with OEMs as material requirements evolve. "If there is an enhanced cost, it will come down when volumes increase. We will play with the boundary conditions that are set for us by the government," said Mehta.