Vehicle recycling involves the dismantling of the vehicle. Recycling is a great way to protect natural resources by ensuring all environmentally hazardous vehicles are destroyed & re-used properly. Most old vehicles emit a large number of toxins into the environment if left to just rust and rot.
Almost all the parts of a vehicle can be recovered, with a recycling rate of greater than 90 percent. Mostly recycled parts of a car include tires, windshield glass, batteries, steel and iron, wheels, radiators, transmissions, rubber hoses, carpets, car seats, belts, oil filters, and mats. Every year in the U.S. alone, around 220 million old tires are generated, with a recycling rate of about 80 percent. Commonly, recycled tires are used in pavement bases to make new roadways. Recycled glass from automotive is used to create tile flooring, glass beads, porcelain, countertops, and jewelry. Recycling a ton glass can save around 10 gallons of oil from being employed in the production of new glass. Auto batteries are recycled to produce new ones. Steel and iron from junk cars are commonly used to produce many different products.
The auto recycling industry is the 16th largest in the United States, contributing $25 billion per year to national GDP. According to the Alliance of Automobile Manufacturers, every year, about 95 percent of vehicles retired from U.S. roadways are recycled. With around 12 million vehicles reaching the end of their useful lives each year that translates into a significant opportunity.
Conventionally, vehicle scrap recycling in India has been a highly unorganized market where the end of life vehicles are unsafely stripped and scrap metals, all sorts of recovered & refurbished parts are sold. Currently, there are no regulations to monitor these markets and take account of the recovered scrap, thus necessitating a government policy which recognizes scrap generation from auto recycling as a sustainable, eco-friendly industry.
Considering the need of the hour and the huge underlying potential of the industry, Government of India under the Ministry of Road Transport & Highways is drafting a new scrapping policy or end of life policy, wherein rust bitten, smoke coughing, dilapidated End of Life Vehicles aka ELVs, causing safety and environment hazards would soon find a way to be scrapped in a systematic manner. The policy will provide various incentives to owners of old vehicles in lieu of surrendering them for scrapping. This policy initiative is likely to open new avenues for auto recycling in India and promises benefits that would help strengthen the economy.
Despite policy uncertainty on recycling Mahindra MSTC Recycling, India’s first auto-shredding project is on track and the first phase of the plant is likely to be complete in February. In the end, amid all promises and challenges, the vehicle recycling industry in India represents a huge potential for scrap generation.