INDIA VEHICLE SCRAPPING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Key Takeaways from Analyst

The vehicle scrapping market in India is set for significant growth over the next decade. The mandatory scrap policy recently implemented by the central government will be a major driver as it will incentivize owners to scrap old, unfit vehicles in lieu of newer models or scrapping certificates. This will increase the volume of ELVs entering authorized scrapping centers on a regular basis. Other factors like rising vehicle ownership, growth in fleet operations, and expansion of organized auto dismantling centers will also support the market expansion.

However, inadequate infrastructure in terms of number and quality of authorized scrapping centers remains a key challenge. As of now, there are less than 40 such facilities across India. Financing options for vehicle owners to purchase new vehicles in lieu of scrapping certificates can also be improved. Regional variations may arise as northern and western states like Delhi, Haryana, Gujarat and Maharashtra have a higher number of aging commercial vehicles and may see faster growth rates. Other emerging clusters could be in industrial towns in Southern and Eastern parts of the country.

Opportunities lie in setting up more modern scrapping facilities that adhere to environmental and safety standards. Investments in automation, materials recovery, and recycling technology upgrades can boost scrap volumes and maximize value recovery per vehicle.