Centre Plans Mandating Use Of 20 Per Cent Recycled Inputs In Auto Industry By 2026-27

Indian Automakers may have to mandatorily use 20 per cent recycled materials out of the total weight of metals they need from 2026-27 onwards.

Quoting a senior government official, an ET report said that the mandate is part of the Extended Producer Responsibility (EPR) being prepared by the Centre.

EPR requires the manufacturer of a product, or the party that introduces the product into the community, to take responsibility for its life cycle.

As per the proposed plan, starting from 2026-27, a minimum of 20 per cent by weight of the materials being used in the vehicle's production need to be recycled material. This requirement will remain constant during 2027-28.

However, in 2028-29 and 2029-30, the amount of recycled materials used in the vehicle's production will be increased to 30 per cent.

Vehicle Scrapping

Like any other consumer durable, the moment vehicles become waste for consumers, they enter an altogether different economic sector where they acquire a second life and new value in the hands of recyclers, scrap dealers and sellers of parts in the second-hand markets.

To address this issue and promote sustainable practices, the Centre is planning to implement Extended Producer Responsibility (EPR) program for automakers. Such a program would make vehicle manufacturers liable for the scrap that is generated once a vehicle reaches its end-of-life (ELV).

However, one of the primary hurdles in this plan is the limited number of scrapping centres in the country. A total of 31 Registered Vehicle Scrapping Facility (RVSF) are currently operational across 12 states.

Out of the 31 RSVF, Uttar Pradesh has the highest number of centres at nine. The facilities are also in Andhra Pradesh (2), Assam (2), Chandigarh (1), Gujarat (4), Haryana (5), Madhya Pradesh (2), Maharashtra (1), Odisha (1), Punjab (1), Rajasthan (2), and Uttarakhand (1).