Industry Overview
Vehicle recycling involves dismantling end-of-life vehicles (ELVs) to recover spare parts, metals, and other reusable materials. The industry has traditionally operated through vehicle dismantling yards, wrecking yards, and car spare parts suppliers, and is increasingly developing into an organized vehicle recycling sector. Manufacturers have also become involved in vehicle recycling, while car crushers are commonly used to reduce vehicle shells for economical transportation to steel mills.
Vehicle recycling is a complex process because it requires the recovery of numerous components and the safe removal of hazardous materials. Vehicles are inventoried on arrival, followed by removal of wheels and tires, batteries, catalytic converters, fluids, and refrigerants. Serviceable high-value components such as electronic modules, alternators, starter motors, infotainment systems, engines, and transmissions may also be recovered for resale or remanufacturing.
Machine-based vehicle recycling systems (VRS) are increasingly being used to improve the efficiency of dismantling. Specialized attachments fitted to excavators or materials handlers can remove higher-value components more quickly than conventional manual methods. After dismantling and de-pollution, vehicle shells are crushed or cubed and transported to industrial shredders or hammer mills, where metals are separated from glass, plastics, and rubber.
The vehicle scrappage policy described in the report is intended to phase out unfit older vehicles, reduce pollution, improve road safety, encourage recycling, and support the automotive sector. The policy also promotes organized scrapping facilities and the recovery and reuse of materials such as steel, aluminium, copper, rubber, and plastic, supporting the principles of reuse, recycle, and recover.
Cost Estimation
| Particulars | Value |
|---|---|
| Plant Capacity | PV Scrap Vehicles 60 numbers per day and CV Scrap Vehicles 7 numbers per day |
| Land & Building (9515 sq.mt.) | Rs. 14.98 Cr |
| Plant & Machinery | Rs. 2.33 Cr |
| Working Capital for 1 Month | Rs. 6.69 Cr |
| Total Capital Investment | Rs. 23.96 Cr |
| Rate of Return | 59% |
| Break Even Point | 29% |
Content Index
- INTRODUCTION
- VEHICLE SCRAPPAGE POLICY
- SOME INCENTIVES FOR SCRAPPING OLD VEHICLES AND BUYING NEW ONES ARE AS FOLLOWS:
- CHALLENGES
- RTO RULES FOR SELLING OF CARS AS SCRAP IN INDIA
- SOME POINTS TO NOTE ABOUT THE SCRAPPING PROCESS ARE AS FOLLOWS:
- VALUATION OF OLD CARS:
- CHALLENGES FOR INDIAN ECONOMY
- IMPORTANT DEFINITION REGARDING SCRAPING OF VEHICLE
- POWERS AND OBLIGATIONS OF RVSF
- CONDITIONS OF ELIGIBILITY OF RVSF
- ELIGIBILITY CONDITIONS
- REGISTRATION OF RVSF
- CRITERIA FOR SCRAPPING OF VEHICLE
- CERTIFICATE OF VEHICLE SCRAPPING
- APPLICABLE RULES /ACTS
- BENEFITS OF SCRAPING POLICY
- DISINCENTIVES FOR KEEPING OLD VEHICLES:
- USES AND APPLICATION
- ENVIRONMENTAL BENEFITS
- WILDLIFE PROTECTION
- CONSERVATION OF ENERGY AND RESOURCES
- MAKE SPACE
- BIS SPECIFICATION
- OPERATION OF VEHICLE SCRAP YARD
- THE COLLECTION/DISMANTLING/DE-POLLUTING/SHREDDING FACILITY SHALL TAKE ALL THE STEPS TO:
- STORAGE:
- PRE-CONDITIONS FOR STORING ELVS
- AN ELV SHALL NOT BE STORED WITHOUT REMOVING THE BATTERY, ADDITIONAL SALIENT POINTS ON STORAGE OF ELVS:
- TRANSPORTATION
- DE-POLLUTION PROCESS
- DE-POLLUTION SEQUENCE
- A. BEFORE LIFTING VEHICLE
- B. LIFT THE VEHICLE ON DE-POLLUTION FRAME OR LIFTING DEVICE
- DRAIN FUEL TANK
- C. REMOVE VEHICLE FROM DE-POLLUTION FRAME OR LIFTING DEVICE
- FOR LIQUID HAZARDOUS SUBSTANCES
- A. WASTE OILS
- B. TRANSMISSION OIL
- C. BRAKE FLUIDS & CLEANERS
- D. FUEL AND FUEL FILTERS
- E. COOLANT (ANTIFREEZE)
- FOR SOLID HAZARDOUS SUBSTANCES
- A. LEAD ACID BATTERIES
- B. AIR FILTER
- G. RUBBER PARTS
- H. GLASS PARTS
- I. ELECTRONIC PARTS
- J. REFRIGERANT GASES
- K. AIRBAGS
- L. CATALYST
- DISMANTLING & SEGREGATION
- IN THE CASE OF M1 CATEGORY VEHICLES:
- IN THE CASE OF LL AND L2 CATEGORY VEHICLES:
- SHREDDING AND SEPARATION AND PROCESSING OF RESIDUES
- TECHNOLOGIES FOR THE ELV RECYCLING PROCESS
- TECHNOLOGIES FOR PROCESSING RESIDUES - SEGREGATION OF NON-FERROUS METAL FRACTIONS:
- OTHER TECHNOLOGIES
- TECHNOLOGIES FOR TREATMENT OF SEGREGATED MATERIALS
- INPUT/OUTPUT DATA
- PROCESS FLOW CHART
- RECOMMENDED TOOLS & EQUIPMENT FOR PRE-TREATMENTS:
- UTILITIES PER MONTH (ESTIMATED)
- SUPPLIERS OF PLANT AND MACHINERY
- SUPPLIERS FOR VEHICLE RECYCLING PLANT
- SUPPLIERS OF DG SETS
- SUPPLIERS OF EOT CRANE
- SUPPLIERS OF POWER TRANSFORMERS
- SUPPLIERS OF ELECTRICAL PANEL
- SUPPLIERS OF AIR POLLUTION CONTROL EQUIPMENTS
- SUPPLIERS OF AIR COMPRESSORS
- SUPPLIERS OF PLATFORM WEIGHING MACHINE
- SUPPLIERS OF MATERIAL HANDLING EQUIPMENTS
- SUPPLIERS OF FIRE FIGHTING EQUIPMENTS
- PROJECT CYCLE
- PRINCIPLES OF PLANT LAYOUT
- MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
- PRINCIPLES OF PLANT LAYOUT
- PLANT LOCATION FACTORS
- PRIMARY FACTORS
- RAW-MATERIAL SUPPLY:
- MARKETS:
- POWER AND FUEL SUPPLY:
- WATER SUPPLY:
- CLIMATE:
- SPECIFIC FACTORS
- TRANSPORTATION:
- WASTE DISPOSAL:
- LABOR:
- REGULATORY LAWS:
- TAXES:
- SITE CHARACTERISTICS:
- COMMUNITY FACTORS:
- VULNERABILITY TO WARTIME ATTACK:
- FLOOD AND FIRE CONTROL:
- GENERATION & MANAGEMENT OF WASTES/GREEN BELT
- WASTE WATER (ESTIMATED)
- WASTE (ESTIMATED)
- HEALTH SAFETY AND ENVIRONMENT
- ANTICIPATED ENVIRONMENTAL IMPACTS
- CONSTRUCTION PHASE
- OPERATION PHASE
- MITIGATION MEASURES (PROPOSED)
- HSE REQUIREMENT
- PROPOSED IMPLEMENTATION SCHEDULE
- PROJECT FINANCIALS
- BASIS & PRESUMPTIONS (FOR PROFITABILITY WORKINGS)
- PRELIMINARY PLANT LAYOUT
- CAR SCRAP DEALERS
Appendix
- APPENDIX – A:
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSETS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5-10 YEARS)
Frequently Asked Questions
Vehicle recycling is the systematic dismantling and processing of end-of-life vehicles to recover reusable parts and recyclable materials.
The process typically includes vehicle inventory, removal of reusable components, de-pollution, dismantling, segregation, crushing or shredding, and separation of recovered materials. Hazardous substances such as fuels, oils, coolants, refrigerants, batteries, and airbags require appropriate handling. Recovered components may be sold for reuse or remanufacturing, while metals and other materials can be directed to recycling streams. Organized recycling helps reduce waste while recovering valuable resources from vehicles that are no longer suitable for continued use.
The main steps are vehicle inspection and inventory, de-pollution, dismantling, segregation, and processing of the remaining vehicle shell.
Initially, reusable parts and hazardous materials are identified. Wheels, tires, batteries, catalytic converters, fluids, refrigerants, and selected high-value components are removed. Further dismantling may recover wiring, air-conditioning components, electronic parts, glass, rubber, and other materials. The remaining shell is then crushed or cubed for economical transport and may undergo shredding and separation. This sequence enables different material streams to be recovered and handled according to their characteristics and intended end use.
De-pollution is essential because end-of-life vehicles contain fluids, gases, batteries, and other substances that can create environmental and safety risks.
Vehicle recycling facilities must remove materials such as waste oils, transmission oil, brake fluids, fuels, coolants, refrigerants, lead-acid batteries, airbags, and catalysts before further processing. Proper removal and storage reduce the risk of soil, water, and air contamination and help protect workers. De-pollution also prepares the vehicle for dismantling and shredding by separating hazardous materials from recyclable components. Appropriate procedures, equipment, storage systems, and regulatory controls are therefore fundamental to responsible ELV management.
Scrap vehicles can provide reusable components as well as recyclable steel, non-ferrous metals, plastics, rubber, glass, and electronic materials.
Depending on vehicle condition, serviceable engines, transmissions, electronic modules, alternators, starter motors, infotainment systems, and other components may be recovered for resale or remanufacturing. After dismantling, ferrous and non-ferrous metals can be separated for recycling, while glass, plastics, rubber, wiring, and other materials may be processed through suitable recovery streams. The report emphasizes that recovered materials such as copper, rubber, steel, aluminium, and plastic can be reused, supporting resource conservation and circular-economy objectives.
A machine-based vehicle recycling system improves the speed and efficiency of recovering higher-value components from end-of-life vehicles.
The report describes the use of excavators or materials handlers fitted with specialized attachments to mechanically remove selected components. Traditional dismantling can be labour intensive, making recovery of some parts uneconomical. Mechanical systems can increase processing efficiency and help dismantlers recover more material from each vehicle. Their application can therefore support greater material recovery and improve the value obtained from an ELV, while also requiring suitable equipment, operating procedures, safety controls, and facility layout.
Vehicle scrapping supports environmental sustainability by recovering materials, reducing landfill disposal, and lowering the need for virgin resources.
Recycling vehicle metals reduces the energy and natural resources required for producing new materials. Organized dismantling also enables hazardous substances to be removed before vehicles are shredded or otherwise processed. The report highlights the recovery and reuse of steel and non-ferrous metals and identifies additional benefits involving plastics, rubber, aluminium, and copper. By returning useful materials to industrial supply chains, vehicle recycling can contribute to resource conservation and the broader objective of developing a circular economy.
A vehicle recycling facility should be planned around material supply, market access, utilities, transportation, regulatory requirements, safety, environmental management, and site suitability.
The report identifies factors including raw-material supply, markets, power and fuel, water, climate, transportation, waste disposal, labour, regulatory laws, taxes, site characteristics, community factors, flood and fire control, and waste management. Facility planning must also provide appropriate areas for vehicle receipt, storage, de-pollution, dismantling, material segregation, and processing. Equipment selection, HSE requirements, environmental mitigation, plant layout, and implementation scheduling are also important considerations for establishing an organized and operationally efficient recycling facility.
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