Market Overview

In 2023, the Indian automotive recycling market earned revenue totalling USD 8,992.9 million. Forecasts indicate a projected compound annual growth rate of 13.1% from 2024 to 2030, with an anticipated market value of USD 21,128.7 million by 2030.

This development of the market can be credited to the wide utilization of metal scrap, improvements in recycling techs, high customer consciousness of material recycling for sustainability, and favorable government guidelines for salvage yards.

The Vehicle Scrapping Policy was announced in 2021 by the Indian Government to help people get rid of cars that don't fit on roads. The main aim of this new regulation is to lessen the ineluctable pollution produced by old vehicles. The initiative will play a significant role in phasing out the use of old vehicles in efforts to purify the air and minimize emissions from them.

They promote leads to, furthermore, develop the demand for these new vehicles, and resolve new jobs for places such as scrap yards, recycling centers, and repair shops that deal with recycled components.

As material, steel makes the top of the list in terms of market size, while at the same time, it is the CAGR that promises the highest growth rate for the forecast period. It is to be noted that steel is the most ubiquitous material that is usually utilized in automobiles. Its use was previously extensively limited to the chassis part of the vehicle.

Key Insights

• The passenger vehicles category led the industry because of the high volume reaching the end of their life yearly.
• Parts such as transmissions, engines, alternators, and other mechanical components are recycled in other cars.
• Car body parts are vented as scrap, and internal components are reused for furniture and other materials.
• Based on material, the steel category has the largest industry share and is projected to witness the highest CAGR.
• Steel is widely utilized in cars, mainly for chassis in earlier-generation cars.
• Different kinds of steel such as high-strength, ultra-high-strength hot-forming, reinforced, and plain steel are utilized for numerous car parts such as doors, roofs, and bonnets.
• Copper metal sheets of high width are utilized for key parts, while stripper sheets are utilized for outcroppings and mounts.
• The automotive industry is estimated to use 50% recycled materials in their autos in the years to come to decrease the scope of new mining of metals and plastics.
• They work together with industry partners who ensure the supply of high-quality material from end-of-life vehicles (ELVs) such as internal combustion engines (ICE), plug-in hybrids, and electric engines.
• Some businesses have begun moving to the ELV scrapping services with such operations strengthened by efforts carried out in the creation of modern scrapyards.
• The clients will be able to find an easy and clean environment through these programs, which will also be a guarantee that they are not missing out on the best disposal and monetary value for their ELVs.
• BMW publicized in April 2023 that future BMW Group cars will include 50% used materials.
• The Car2Car enterprise targets to surge the usage of used materials by 50% in new models.
• BMW is joining forces with stakeholders to advance the quality of materials gathered from end-of-life vehicles.

Source: P&S Intelligence