Govt may mandate 20% recycled materials in auto manufacturing from 2026-27

The latest government regulation is likely to make it compulsory for automobile manufacturers to use 20 per cent recycled materials out of the total weight of metals they need from 2026-27 onwards, The Economic Times (ET) has reported citing Extended Production Responsibility (EPR) rules being prepared by the government.

As a part of this regulation, the quantum of recycled materials to be used will be increased progressively as more vehicle scrapping centres become operational.

A senior government official aware of the developments told ET, "Vehicle manufacturers need to be held liable for the scrap that is generated once a vehicle reaches end-of-life." The official added that discussions about the plan are in the early stages and consultations are still underway.

Under the plan, at least 20 per cent by weight of the material being used to make vehicles need to be recycled from 2026-27. This quantum will be kept unchanged until 2027-28 and will be increased to 30 per cent for 2028-29 and 2029-30. The mandate will be on using a minimum percentage of recycled materials in new production, the report said.

An industry expert was quoted in the report as saying, "Some 10 million vehicles reach end-of-life stage every year. The number of scrapping centres in the country will need to be commensurate with this demand." Furthermore, the expert said that the plan under consideration will be very difficult to implement with the current levels of infrastructure. Operationalisation of vehicle scrapping units and automated testing centres remains key to the success of this plan.

As things stand, there are a total of 31 registered vehicle scrapping facilities (RVSF) that have received approval and are operational. Another 29 units have been categorised as 'approved only' by the Ministry of Road Transport and Highways, the report added.