Tata International, Tata Motors start vehicle scrapping facility in Pune

Tata International and Tata Motors have started a new vehicle scrapping facility in Pune that can dismantle 21,000 end-of-life vehicles annually, catering to both commercial and passenger vehicles across all brands.

 

This is Tata Motors' sixth such unit, even as the implementation of the vehicle scrappage policy remains low due to a limited network of registered vehicle scrapping facilities (RVSFs), inadequate incentives, and lack of awareness.

 

The Pune RVSF joins Tata International's existing network of Re.Wi.Re (Recycle with Respect) facilities in Jaipur, Bhubaneswar, Surat, Chandigarh, and Delhi NCR. The scrapping unit features dismantling stations for tyres, batteries, oils, and gases, ensuring compliance with the government’s vehicle scrappage policy.

 

The Pune facility’s inauguration comes amid a growing focus on organised scrapping solutions in India. According to a report by Fortune India, as of September 2024, there are 63 operational scrapping centres in the country, with 60 under construction and 40 in the pipeline.

 

Credit rating agency ICRA projected in an October report that an additional 570,000 vehicles will cross the 15-year age threshold in the next two financial years (FY25 and FY26). "Further, with over 900,000 government vehicles proposed to be mandatorily scrapped under the first phase, it offers significant replacement demand potential for the automotive industry. Scrappage potential in other segments is limited, considering the limited usage of two-wheelers, passenger vehicles, and light commercial vehicles (LCVs) beyond 15 years. However, as of August 31, 2024, registered vehicle scrapping facilities (RVSFs) had received only 44,803 private scrap applications and 41,432 government scrap applications (including defence/impound scrap applications)," the ICRA report said.

 

"Implementation of the vehicle scrappage policy, however, faces several challenges, which have slowed its pace of execution. The limited network of RVSFs, inadequate incentives, lack of awareness about this policy, particularly among private vehicle owners, and issues related to registration date criteria are a few factors that have hindered the rapid implementation of the policy," Kinjal Shah, senior vice president and co-group head – corporate ratings, ICRA, noted in the report.

 

Rajeev Singhal, managing director of Tata International, termed the Pune facility a "milestone" towards circularity, while Rajeev Batra, CEO of TIVA, noted that this supports the country’s transition toward a cleaner, more regulated framework for vehicle recycling.