Beginning in the financial year 2026 (FY’26), automakers in India may be required to recycle a specified percentage of steel from vehicles sold two decades earlier, as part of the country’s broader strategy to combat air pollution.
As per media reports, the Ministry of Environment, Forest and Climate Change (MoEFCC) is expected to introduce regulations mandating that at least 8% of the steel used in vehicles from 2005-06 be reprocessed. This initiative aims to involve automakers in the national effort to reduce environmental impact and formalise the vehicle scrapping process.
Tight deadlines for automakers
As of July 2024, India has only 110 registered vehicle scrapping facilities (RVSFs), with 51 approved and operational and 59 still in the approval stage–highlighting the substantial investment required by the auto industry.
Automakers are expected to either establish their own scrapping facilities or partner with existing operators to comply with the upcoming mandate. With the regulation set to take effect within the next seven months, manufacturers face a tight timeline to adapt their operations.
Government, industry discussion
In recent meetings with members of the Society of Indian Automobile Manufacturers (SIAM), including representatives from leading companies like Hero MotoCorp, Mahindra & Mahindra, and Maruti Suzuki India, government officials discussed the upcoming mandate. These discussions resulted in some flexibility regarding the steel recycling targets.
This initiative is part of the MoEFCC’s ongoing efforts to enforce extended producer responsibility (EPR) for end-of-life vehicles. The draft notification, initially issued in January, requires automakers to recycle at least 10% of the steel used in vehicles sold two decades ago by 2025-26. This requirement will gradually increase, prompting the industry to rethink its approach to vehicle lifecycle management and environmental responsibility.
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