Every Indian domestic automobile manufacturer will need to set up their own vehicle scrapping facility for the sustainable growth of the industry and the phasing out of end-of-life vehicles, to promote demand for new products and establish a robust recycling industry, India’s minister of roads, highways and surface transport Nitin Gadkari said in a statement on Tuesday, September 26.
The minister said that even automobile manufacturers and dealers should set up their own scrapping facilities as the country does not have sufficient numbers.
Among domestic automobile companies, only Maruti Suzuki India Limited (MSIL), Tata Motors Limited and Mahindra & Mahindra have their own scrapping facilities.
He said that the vehicle scrapping policy will increase automobile sales by18 percent, and using raw materials from scrapped vehicles will result in a cost reduction of 33 percent, and considering these benefits every automobile manufacturer will need to set up scrapping facilities.
The government will use a mix of incentives and disincentives in its policy framework to prompt the companies towards this goal, the minister said.