India: Tata Motors' new Pune facility provides fresh impetus to vehicle recycling sector

• Tata's RVSF can dismantle 21,000 ELVs annually
  
  

• Govt assures scrap vehicle prices will remain market-driven
  
  

Tata Motors, in collaboration with Tata International, has launched a new Registered Vehicle Scrapping Facility (RVSF) in Pune under Re.Wi.Re (Recycle with Respect) group of facilities.

The RVSF is operated by a third Tata subsidiary known as Tata International Vehicle Applications (TIVA) and can handle both passenger and commercial vehicles.

This facility, with a capacity to dismantle 21,000 vehicles annually, addresses the urgent need for safe and efficient vehicle recycling, crucial for managing the vehicle lifecycle in India, said Rajeev Batra, CEO, TIVA.

This initiative is a crucial step toward addressing India's growing need for efficient vehicle recycling, vital for reducing environmental impact and supporting the circular economy.

Tata has expanded its Re.Wi.Re network to six strategic locations across India, with the newly launched Pune facility joining existing centres in Jaipur, Bhubaneshwar, Surat, Chandigarh, and Delhi. This growing network is expected to significantly address the increasing demand for ferrous scrap, a critical raw material for recycling industries and secondary steel production.

India's growing vehicle scrapping sector is gaining attention, particularly as it aligns with the country's sustainability and secondary steel production goals. In a recent statement to the Lok Sabha, Nitin Gadkari, India's Minister for Road Transport and Highways, emphasised that scrap vehicle prices will be market-driven, determined by the vehicle's condition, with private Reserve Vehicle Scrapping Facilities (RVSFs) handling valuation. This ensures that pricing is competitive and transparent.

To further promote scrapping, the government offers incentives to ease the financial burden on citizens, particularly low-income groups. Through the "Certificate of Deposit" programme vehicle owners can be exempted from registration fees when purchasing new vehicles. Additionally, motor vehicle tax discounts of up to 25% for private vehicles and 15% for commercial vehicles are provided, with concession periods extending for up to 15 years. These incentives aim to boost vehicle recycling and promote greener transportation options.