Toyota Kirloskar Motor (TKM)India, a subsidiary of Japan’s Toyota Motor Corporation is exploring opportunities for setting up car recycling business in India.
It may set up a vehicle scrapping facility in the country that would undertake scientific scrapping of Toyota vehicles that have exhausted their utility and have to be phased out under government’s upcoming vehicle recycling policy.
It may be noted that Mahindra Intertrade has already signed MoU with Indian government for setting up first auto shredding unit.
TKM Director, Shekar Viswanathan earlier stated, “Toyota based in Japan are designing vehicles with a mindset of their operational life in order to obtain maximum recycling. We could replicate the same model in India both in terms of vehicle designing and scrapping. Currently, Toyota India produces 310,000 units annually at its two car plants at Bidadi, Bangalore.”
Toyota has a separate vehicle scrappage subsidiary in Japan, which is primarily responsible for recycling scrap metals generated at manufacturing plants. The entity has been constructed to promote an environmentally friendly recycling business, primarily for scrap metals.
“We would certainly be interested in a similar facility in India,” Viswanathan said without giving any further details, including investment requirement for such a project.
Potential Market in India
India is a very potential market for auto recycling looking at the rising number of vehicles that are being sold every year. India will become world’s third largest automobile market in couple of years. This will also bring lot of opportunities for auto recycling in India.
The need for a scrapping unit is felt as the national green tribunal (NGT), in a order in April, banned registration of diesel vehicles over 10 years old and petrol vehicles over 15 years old in Delhi-National Capital Region to check rapidly worsening air pollution.
Moreover, the government intends to switch to use of Euro V and Euro VI fuel in all vehicles by 2019 and 2023 respectively. All these could create a huge market for recycling vehicles so that exercise itself does not result in increased pollution from old and unused vehicles.
Globally over 30 million vehicles are recycled every year generating a scrap of about 25 million tones. According to a report by Central pollution board, there will be over 8 million vehicles that can be recycled in the very first year.