India Automotive Recycling Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

India Automotive Recycling Market Data

India Automotive Recycling Market Trends & Drivers

Surge in Policy Support Drives Market

• In 2021, India announced the Vehicle Scrapping Policy to encourage people to get rid of cars that are not fit for taking to the roads.
• The primary objective of this new policy is to reduce the pollution created by old vehicles. By driving the retirement of old, inefficient vehicles, it aims to improve air quality and reduce harmful emissions.
• It also helps increase the demand for new vehicles and create job opportunities in areas such as scrap yards, recycling centers, and auto repair shops specializing in recycling and repurposing materials.
• Apart from this, recycling automobiles reduces the environmental risks associated with the disposal of oil, rubber, batteries, and other materials. Ultimately, this policy aims to restore natural resources and reduce greenhouse emissions.

India Automotive Recycling Industry Outlook

By Material

By material, the steel category holds the largest share, and it is expected to witness the highest CAGR during the forecast period. Steel is the most-widely used material in automobiles, and the chassis of the previous generation of automobiles were majorly made from it.

Various kinds of steel, such as ultra-high-strength hot-forming, high-strength, reinforced, and plain steel, are used to make automobile parts, such as roofs, bonnets, and doors; majorly, high-thickness Copper metal sheets are used for these parts. Moreover, sheets of less thickness are used for flanges and mounts.

During the study, we analyzed the following materials that are the most widely recycled from vehicles:

• Iron
• Aluminum
• Steel (Largest and Fastest-Growing Category)
• Rubber
• Glass
• Plastic
• Others

Market by Vehicle Type

By vehicle type, the passenger vehicle category holds the largest market share, because a large number of these automobiles reach the end of their life every year. Many automotive parts from them, i.e., engines, transmissions, alternators, and other mechanical components, are reused in other vehicles. The body parts of cars can be easily sold as scrap, while the interior components can be recycled to make furniture and other material.

During the study, we analyzed the following vehicle types in the report:

• Passenger Vehicles (Larger and Faster-Growing Category)
• Commercial Vehicles

Market Nature - Consolidated

• Several automotive companies have announced that they will use 50% recycled materials in their vehicles in the coming years. With these initiatives, companies want to reduce their usage of newly mined metals and newly produced plastics, ceramics, and other materials in their models. Automakers work with industry participants to obtain high-quality materials from end-of-life vehicles. A small number of businesses have gathered some ELVs, comprising ICE, plug-in hybrid, and completely electric vehicles, to do this.
• Several businesses are working together to offer an ELV scrapping program, leveraging the government’s support for setting up modern scrapyards. Customers can dispose of their old automobiles in an organized and ecologically beneficial way, while these junkyards seek to ensure customers receive the best value for their ELVs.

Indian Automotive Recycling Industry News

In April 2023, BMW announced that future BMW Group cars will be made from 50% recycled materials.

• BMW Group targets to increase the number of used recycled materials in new models by 50% under a new initiative, called Car2Car.
• The carmaker will also try to improve the quality of the gathered material from end-of-life vehicles. For this, BMW is collaborating with various stakeholders.
• For this initiative, BMW, MINI, and Rolls Royce will gather 500 end-of-life vehicles, including ICE, plug-in hybrid, and fully electric vehicles. Additionally, BMW wants to ensure the quality and standards, as well as improve the quality of the secondary materials gathered from end-of-life cars.

Proper metal recycling can cut auto component cost by 30%.

• The Minister of Road Transport and Highways Nitin Gadkari targets to decrease the price of vehicle components by 30%, which may be achieved through enhanced metal recycling, which immediately boosts the export sector's competitiveness.
• Additionally, the government targets a doubling of the size of the automobile sector to INR 15 lakh crore and create 5 crore jobs.

Mahindra, Maruti, and Tata participated in Global Recycling Day 2023 by providing their mettle for recycling.

• Every year, Global Recycling Day is observed on March 18 by the Bureau of International Recycling (BIR) to promote recycling as a re-energizing resource.
• By realizing the importance of a greener environment and business opportunities, India’s leading carmakers—Mahindra & Mahindra, Tata Motors, and Maruti Suzuki India—are setting up vehicle scrapping centers in India.

In November 2022, Maruti Suzuki Toyotsu India (MSTI) signed an agreement with Honda Cars India to offer ELV scrapping service.

• The service started from Delhi-NCR, Haryana, and Uttar Pradesh, as the facility was established in Noida, Uttar Pradesh.
• With this service, Honda’s customers can dispose of their old cars in an environment-friendly and scientific manner.
• According to HCIL, this arrangement helps consumers acquire a high value for their ELVs and makes deregistration and Certificate of Deposit through its dealer partners simpler.

In March 2023, Mahindra Accelo and MSTC Limited decided to expand their presence to over 100 cities by 2025.

• As a government-authorized vehicle recycler, the joint venture between Mahindra Accelo and MSTC Limited aims to promote and streamline the process of ELV recycling and make it eco-friendly.
• While Mahindra itself has a Major presence in the automotive sector, Mahindra Accelo is focused on steel processing. Hence, with this initiative, Mahindra MSTC Recycling Pvt. Ltd. (CERO) was created.