Plastic recycling firms to play a major role in vehicle scrapping

In order to streamline the vehicle scrapping infrastructure, the Government of India plans to lay down rules for recyclers from ship breaking and plastic recycling industries to set up Registered Vehicle Scrapping Facilities (RVSPs).

25 Sep 2025 | By Abhay Avadhani

Plastics are used in dashboards, bumpers, door panels, wiring insulation, seats, fuel tanks, and more

This change aims to accelerate the development of the scrapping ecosystem of the nation. Plastics contribute to around 100 to 150-kgs in a typical passenger car. These include PP, PE, PVC, ABS, polycarbonate and composite plastics.

RVSFs aim to recover components of vehicles such as fluids, metal, plastics, and tyres with their dismantling units. Out of these, metals are easy to recover because of their high value and the easy recyclability. Plastics end up in the low-grade recycling systems or incineration. This would also give rise to scrapping facilities to segregate plastics by polymers.

The end-of-life vehicles (ELVs) refer to those which are no longer legally active or are termed as waste by the owners. According to sources, around 75% of ELV recycling happens through the informal sector. Hence, a formal recycling sector for ELVs along with EPR guidelines, will boost the plastic recycling rate of the ELVs. Recycling plastics will also reduce the dependency on material import from foreign countries.

For instance, Volvo had set its targets: at least 25% of the plastics used in the manufactured cars would be recycled in 2025. On the other hand plastic recycling companies like Banyan Nation, would step in to offer closed-loop recycling solutions. This process would involve processing ELV components, and then using the recycling plastic to produce new automotive parts. This would reduce the dependency on virgin plastics.

In the meantime, the automotive industry is taking action to adhere to this. Companies such as Maruti Suzuki, Tata Motors, and Mahindra have also set up multiple RVSFs across the country.

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