With the increasing environmental degradation, the government of India is implementing favorable regulations regarding the establishment of scrap yards, that can facilitate the transition from conventionally used vehicles to environment-friendly variants. Besides the Ministry of Heavy Industries & Public Enterprise and the Ministry of Steel, Ministry of Road Transport and Highways (MoRTH), several state governments are also enacting policies for regulating end-of-life vehicle (ELV). Furthermore, both central and state governments are promoting the adoption of good manufacturing practices (GMPs).
This is being done by encouraging the adoption of modern, eco-friendly, and state-of-the-art technologies. Ferrous scrap is the primary raw material required for induction furnace (IF)/electric arc furnace (EAF)-based steel. Because of this reason, metal scrapping facilities are increasingly being established all over the country. The framework and regulatory guidelines being implemented for the same include guidelines for assembling, shredding, and dismantling automobile in an organized, eco-friendly, and safe manner.
Apart from the aforementioned factors, the regulatory authorities and the central and the state governments are rapidly shutting down unregulated scrap yards. This is further boosting the regulation of ELV and dismantling in the country, which is, in turn, propelling the advancement of the Indian end-of-life vehicle (ELV) and dismantling market. According to the findings of P&S Intelligence, a market research firm based in India, the market generated a revenue of $3,474.0 million in 2019.
Furthermore, the market is predicted to advance at a CAGR of 17.2% from 2020 to 2030. ELV and dismantling yards are being built for promoting the recycling of both diesel and petrol-powered vehicles. Between the two, the requirement for the ELV and dismantling of diesel-powered vehicles is predicted to grow rapidly across the country in the coming years. This would be because of the large-scale usage of commercial vehicles, which usually run on diesel, in the country.
Hence, it can be said without any hesitation that the demand for ELV and dismantling scrapyards would surge in India in the years to come, mainly because of the rising enactment of favorable government policies regarding the proper and eco-friendly dismantling of vehicles and the increasing deployment of passenger cars and commercial vehicles in the country.