India is the fourth-largest producer of automobiles in the world but does not have a vehicle scrapping policy in place.
But, in the Economic Survey 2019, the government of India has put vehicle scrapping in the priority sector for enhancing the resource efficiency.
“Studies estimate that Indian auto industry will consume around 70-80 million tonnes of iron and steel by 2030 which is around 70-80 per cent of the total steel production capacity in India. As India has a fragmented process of scrap collection, nearly six-seven million tonnes per annum of steel scrap are being imported,” stated the survey.
As many as 21.8 million vehicles are expected to reach the end of life in six years, given the reducing average life of vehicle ownership. From around six-eight years, the average ownership period among car and two-wheeler buyers has shrunk to three-five years. A similar trend is visible in the used-car market.
“Research suggests around 21,895,439 vehicles will reach end of life by 2025 which would generate more than 10 million tonnes of steel scrap,” added the survey.
As per data from the ministry of road transport and highways, there were 230 million registered motor vehicles in Indian roads in 2016, with the vehicle density per 1,000 people having tripled to 167.
In 2018, CERO – a joint venture between Mahindra Accelo and MSTC, a government of India enterprise under the Ministry of Steel – set a pollution-free recycling facility in Greater Noida. End-of-Life vehicles are collected, depolluted and dismantled at this facility.
“Various studies have analyzed the economic impact of effective resource efficiency strategy and identified that Rs 6000 crore can be saved in the manufacturing sector with its implementation. Estimates suggest that US$1 billion worth of gold can be extracted with mining of urban e-waste. Effective waste management policies can generate 14 lakh jobs and nearly US$2.7 billion opportunity can be created from the extraction of eight million tonnes of steel from the end of life vehicles,” added the survey.
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