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

India Vehicle Scrapping Market Size and Trends

India Vehicle Scrapping Market is estimated to be valued at USD 8.9 Mn in 2024 and is expected to reach USD 38.4 Mn by 2031, growing at a compound annual growth rate (CAGR) of 23.2% from 2024 to 2031.

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The vehicle scrapping market in India is expected to witness significant growth during the forecast period. With the Government of India pushing to scrap unfit vehicles older than 20 years under the recently launched Voluntary Vehicle Fleet Modernisation Programme, the market is poised to grow manifold. As more fleet owners such as bus and truck operators opt for vehicle replacement over continued use of old vehicles, it will drive a surge in demand for vehicle scrapping services in the coming years. Moreover, with rising awareness about environmental protection and stringent emission norms, vehicle owners are likely to replace old polluting vehicles with new models, thereby propelling the scrapping market in India. 

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Top Strategies Followed by India Vehicle Scrapping Market Players

• Established Players: Leading companies heavily invest in research and development to introduce technologically advanced and innovative products. For example, Maruti Suzuki invests over 3% of its annual revenues in R&D to develop efficient and eco-friendly vehicles.
• Mid-Level Players: Mid-sized players aim to deliver high-quality yet affordable products and services targeting the price-sensitive segments. They competitively price their offerings while maintaining decent profit margins.
• Small-Scale Players: Small players focus on specific market niches neglected by bigger players. For example, some cater to customized demands of certain industries or geographical areas not addressed by others.

Emerging Startups in the India Vehicle Scrapping Market

• Innovative Technologies: Startups like Cero develop IoT-based solutions leveraging AI and cloud to remotely monitor fleet performance. Automovill implements blockchain to securely track vehicle documentation and scrap processing.
• Sustainable Solutions: Startup Tolexo manufactures vehicle parts from recycled aluminum and steel scrap. Chennai-based Lohia Auto aims to set up battery recycling facilities to promote sustainability.
• Niche Markets: Some startups tap underserved rural markets and customize offerings for budget-conscious customers. A few have also emerged as aggregators to facilitate scrap disposal for individuals and SMEs.