New Delhi, July 16 -- In a ruling that could expose automakers to greater liability over India's ethanol-blended fuel policy, a consumer court has ordered Maruti Suzuki India Ltd. 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 automakers-including Maruti Suzuki-have in recent weeks defended last year's rollout of the so-called E20 fuel, which has 20% ethanol, saying it is safe for all vehicles.

The E20 programme, intended to reduce crude oil imports and cut ...