Auto Recycling – An Untapped Market in India

Auto recycling in India is at an initial stage but potential is huge. India will become world’s third largest automobile market in next couple of years.

Auto recycling was, and still is, a largely unregulated sector in India. There are hardly any laws governing this sector. Indian auto recycling sector is still at a nascent stage. There was never ever any concerted effort in the last many years to capitalize this opportunity.

But with stricter pollution norms and rising concerns of global warming, government is in the process to bring vehicle recycling policy which will help ban old, obsolete and unfit vehicles out of the system.

Experts are anticipating this policy will be a game changer for metal recycling industry and will open many new entrepreneurial avenues in the country. Considering the number of vehicles that are ready to be recycled and which will come for recycling over a period of time, opportunity is huge.

As the automobile market in India keeps growing, the markets for used vehicles and recycled parts are expected to keep expanding in the country. Under these circumstances, an estimate predicts that about 15 million motor vehicles will be discarded in 2020.

How does it happen in other Countries?

Auto recycling is quite common in developed countries like US, Europe, South Korea, Japan & China. About 30 million cars are recycled every year generating tons and tons ferrous and non ferrous scrap.

These countries have different schemes in order to promote people to surrender their old vehicles. For instance, in the US, government introduced “cash for clunkers” scheme. In UK, a car owner gets incentive upto USD 2500-3000 who surrenders car to buy a new one.

How auto scrapping is done in developed nations

 Source: National Geographic Channel