E20 drag visible on small car sales across Kol showrooms
In Kolkata, the landscape of petrol car sales has undergone a significant transformation, particularly since the introduction of E20 petrol, which contains 20% ethanol. Until recently, buyers were primarily focused on features like touchscreen sizes, airbags, and safety ratings. However, since May, the conversation has shifted dramatically towards concerns about E20 petrol, its impact on engine life, and fuel efficiency. Many potential buyers are now delaying their purchases or seeking more time to make informed decisions. Dealers report that nearly one in three customers is hesitant, primarily due to confusion surrounding the compatibility of their vehicles with E20 fuel. This uncertainty is especially pronounced among brands that rely heavily on petrol models, such as Maruti Suzuki, Hyundai, and Toyota. In contrast, companies like Mahindra and Tata Motors, which offer diesel and electric alternatives, are experiencing less pressure. The situation has escalated beyond Kolkata, with legal disputes arising over vehicle compatibility with E20. A recent directive from a consumer commission in Raipur has added to the unease, prompting Maruti Suzuki to challenge the ruling. Additionally, the disparity in fuel prices—E20 at approximately Rs 106 per litre compared to Rs 161 for pure petrol—has left many middle-class buyers questioning their options. With reports of diminished mileage after switching to E20, the uncertainty surrounding petrol car purchases continues to grow, making sales increasingly challenging for dealerships.
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