Automakers may need to use 20% recycled inputs from 2026-27

Automobile makers may have to mandatorily use 20% recycled materials out of the total weight of metals they need from 2026-27 onwards, according to the Extended Production Responsibility (EPR) being prepared by the Centre. The quantum of recycled materials will progressively increase as more vehicle scrapping centres become active, as per the policy under discussion.

“Vehicle manufacturers need to be held liable for the scrap that is generated once a vehicle reaches end-of-life (ELV),” a senior government official aware of the plan told ET, adding that this policy is in the early stages with consultations still underway.

Under the plan being considered, at least 20% by weight of the materials being used in the vehicle need to be recycled from 2026-27 onwards. This level is to be kept unchanged during 2027-28, but increased to 30% in 2028-29 and 2029-30. The mandate will be on use of minimum percentage recycled materials in new production. This EPR mandate will be for the total weight of ferrous and steel used in a vehicle.

“Some 1 crore vehicles reach end-of-life (ELV) stage every year. The number of scrapping centres in the country will need to commensurate with this demand,” an automobile industry representative said, adding that the plan being considered will be very difficult to implement with the present infrastructure. The idea hinges on the operationalisation of vehicle scrapping and automated testing stations (ATS).

At present there are 31 registered vehicle scrapping facilities (RVSF) that are ‘approved and operational.’ Another 29 are categorised as ‘approved only’ as per Ministry of Road Transport and Highways.