The India vehicle scrapping market comprises vehicles that have completed their useful life and are scrapped. Vehicles are scrapped majorly to obtain useful components that can be recycled and reused. The market is witnessing significant demand for recycled plastic and metal components that can be used in electric vehicle production. Scrapping helps reduce vehicular pollution and dependence on fossil fuels as recycled components are used to manufacture new-age electric vehicles. The automotive industry relies heavily on steel, plastic, aluminium and other materials to manufacture vehicles. Scrapping provides an efficient way to obtain these raw materials in a sustainable manner.
India Vehicle Scrapping Market is estimated to be valued at USD 8.9 Mn in 2024 and is expected to reach USD 38.4 Mn by 2031, growing at a compound annual growth rate (CAGR) of 23.2% from 2024 to 2031.
Key Takeaways
Key players operating in the India vehicle scrapping market are Maruti Suzuki Toyotsu India (MSTI), CERO Recycling, Tata Motors Re.Wi.Re, Kaiho Sangyo Co. Ltd, Mjunction Services Ltd, Go Green ELV Handlers, Goodvalue Auto Scrap Pvt Ltd, Goenka Motors Pvt Ltd, KD Ecosystem, Mahindra MSTC Recycling Pvt Ltd, SRI NEELAYUM PRECOATED STEEL. With growing environmental awareness, demand for vehicle dismantling and recycling services is surging rapidly in India. Technological advancements like AI-based vehicle identification and automated dismantling processes are making scrapping more efficient and sustainable.
The India Vehicle Scrapping Market Growth for scrapped materials like steel, plastics, and precious metals is increasing from industries like automotive, infrastructure and electronics. Automakers are increasingly adopting recycled plastic and steel components for manufacturing electric vehicles to boost sustainability. Technological developments in recycling processes are supporting higher recovery rates of resources from scrapped vehicles. Advanced shredding, separating and smelting technologies ensure almost 100% materials can be recovered and reused.
Market trends
The preference for sustainable raw materials is a key trend gaining traction. Automakers and component manufacturers are actively pursuing strategies to increase procurement of recycled plastic and steel in their supply chains. Growing electric vehicle adoption will further drive demand for scrapped materials in battery manufacturing. Stringent emission norms are also prompting state governments to launch scrapping policies and incentives. Cash incentives and road tax exemptions on purchase of new vehicles for scrapping old ones encourage sustainable mobility.
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