A new facility opens in India to scrap and recycle old vehicles. Here's how it works

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26 Aug, 2025 12:21

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While the Ministry of Road Transport and Highways is likely to announce a vehicle scrapping policy for end-of-life commercial vehicles on October 2, Mahindra & Mahindra through a joint venture with government-owned company MSTC has already set up an automated and organized vehicle scrapping and recycling facility, reports Business Standard.

The five-acre facility also recycles old trucks, buses and consumer durables apart from cars. Set up in Delhi, the facility started operation in April this year.

M&M and MSTC have also joined hands with a company called CERO that acquires vehicles directly from owners and at auctions. The facility evaluates the vehicle and recycles steel, batteries, electronics, engine parts and other metals, etc.

How the facility works?

CERO takes care of the entire process from towing a vehicle to dismantling, deregistration and recycling. The owner of the vehicle gets a certificate of destruction with details of the vehicle and the date of recycling.

The owner of the old car is paid a price for the scrap depending on type, age and condition of vehicle.

Owners also have the option of donating the vehicle to CERO, which has a tie-up with a Mahindra NGO dedicated to education of underprivileged girl child. The NGO will provide the owner 80G certificate for tax exemption. The facility uses world-class equipment to recycle vehicles so that there is zero damage to the environment.

CERO is also responsible for digital marketing of the facility and it is promoting the concept at vehicle dealerships, garages and among the insurance companies.