The Indian end-of-life vehicle and dismantling market are experiencing growth, according to P&S Intelligence. This growth can be credited to the quick closure of unregulated scrap yards, new regulations associated with vehicle life, and helpful government guidelines.
On the basis of fuel, the diesel category is projected to keep on leading the Indian end-of-life vehicle and dismantling market throughout the forecast period. This can be credited to the fact that a huge count of passenger vehicles and the majority of commercial vehicles, such as heavy-duty variants, run on diesel.
Presently, the Indian end-of-life vehicle and dismantling industry is conquered by unorganized companies, who utilize primitive methods to complete the process. But, because of the growing demand for recovered automobile machinery, key automakers, such as Mahindra & Mahindra Ltd., Maruti Suzuki India Limited, and Toyota Kirloskar Motor, have initiated spending in progressive technologies, which can support the disassembling of automobiles in a cost-effective and eco-friendly method.
The key factor boosting the development of the market is the growing count of supportive guidelines being executed by the government. Several state governments, with the Ministry of Road Transport, Ministry of Steel and Ministry of Steel, and Ministry of Heavy Industries and Public Enterprise, have introduced the rule framing process for the creation of scrap yards so that the evolution can be made from orthodox automobiles to ecological variants.
Additionally, such government bodies are showing a robust commitment to good manufacturing practices (GMPs), by pushing the acceptance of hi-tech, eco-friendly technologies. As ferrous scrap is the key raw material for electric arc furnace (EAF)-/induction furnace (IF)-created steel, metal scrapping centers are being encouraged across the country.
The framework articulated for the same would comprise rules for gathering, dismantlement, and shredding cars in a harmless, prearranged, and eco-friendly way.
Hence, the quick closure of unregulated scrap yards, new regulations associated with vehicle life, and helpful government guidelines, are the major factors contributing to the growth of the Indian end-of-life vehicle (ELV) and dismantling market.
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