The unregulated scrapyards in India are being shut down, and the government has also passed certain laws regarding the maximum life of automobiles. In addition, the administration is quickly formulating regulations in support of organized automobile recycling and salvaging activities. As a result, the Indian end-of-life vehicle (ELV) and dismantling market is expected to experience a 17.2% CAGR during 2020–2030 (forecast period); the market generated $3,474.0 million in 2019.
Indian End-of-Life Vehicle and Dismantling Market Segmentation
During the forecast period, the diesel category is projected to witness the fastest growth in the Indian end-of-life vehicle and dismantling market, as diesel is the most popular fuel among commercial vehicles, especially heavy-duty automobiles. Additionally, a large number of passenger vehicles also run on diesel, which further accounts for their high scrapping rate.
The ferrous metal category held the largest share in the Indian end-of-life vehicle and dismantling market in 2019, as 70% of an automobile is made up of iron and steel. Moreover, metallic components are easier to separate from the vehicle, compared to others. Similarly, iron and steel parts account for a high reusability rate, which is why they are the most retrieved automobile components.
Till 2030, the NCT of Delhi classification will grow the fastest in the Indian end-of-life vehicle and dismantling market, on account of the strict regulations regarding vehicle age. Being one of the most polluted parts of the country, the NCT of Delhi has significantly reduced the maximum age of vehicles, to bring down harmful emissions, which would create a vast feedstock for scrapyards in the coming years.
Partnerships Are Strongest Strategic Measures in Market
To seize the opportunities expected to be presented by the expanding Indian end-of-life vehicle and dismantling market, numerous automakers are entering into partnerships.
Browse report overview with detailed TOC on "Indian End-of-Life Vehicle and Dismantling Market Research Report: By Fuel (Petrol, Diesel), Sector (Unorganized, Organized), Component (Ferrous Metal, Non-Ferrous Metal, Plastic, Electrical and Electronic Equipment, Textile, Tire, Battery, Glass), Vehicle (Two-Wheeler, Three-Wheeler, Four-Wheeler), Four-Wheeler (Passenger, Commercial) - Industry Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/indian-end-of-life-vehicle-and-dismantling-market
For instance, in November 2019, Japanese auto giants Toyota Motor Corp. and Suzuki Motor Corp. established a joint venture to dismantle and recycle vehicles in India. The first scrapping unit, to be set up in Noida, will have a monthly recycling capacity of 2,000 automobiles. In future, more similar facilities are planned to be set up across the country by the JV.