Report Overview

India Automotive Recycling Market – Industry Trends & Forecast Report, 2030

The India Automotive Recycling Market size was estimated at USD 8.24 billion in 2023. During the forecast period between 2024 and 2030, the India Automotive Recycling Market size is projected to grow at a CAGR of 9.11% reaching a value of USD 13.17 billion by 2030. Prominent drivers of the India Automotive Recycling Market include the growing awareness and sustainability initiatives, as well as rising fuel and raw material prices. Automotive recyclers employ advanced tools and techniques to extract environmentally friendly materials such as polymers, fluids, and natural substances from used vehicles. Notably, the rapid industrialization and urbanization in developing countries, along with growing consumer awareness, are also propelling the automotive recycling market. Also, other key factors driving automotive recycling include the widespread use of metal scrap, particularly steel, to manufacture more affordable, lightweight, and fuel-efficient vehicles are expected to boost the expansion of the India Automotive Recycling Market during the period in analysis.

Automotive Recycling – Overview

Automotive recycling involves systematically extracting, recovering, and reusing materials and parts from end-of-life vehicles (ELVs). The primary goal is to salvage valuable elements like rubber, plastics, glass, and metals from abandoned cars to reduce landfill waste and promote environmentally friendly disposal. This multi-step process begins with collecting and transferring ELVs, followed by careful disassembly, de-pollution to remove hazardous substances, material separation through shredding, and finally, the recovery and repurposing of useful parts and materials.

India Automotive Recycling Market

Growth Drivers

Rising Scrap Metal Demand

The rising demand for scrap metal is significantly boosting the growth of the Automotive Recycling Market in India. This demand, particularly for steel, supports the production of cost-effective, lightweight, and fuel-efficient vehicles. Automotive recyclers in India are increasingly utilizing advanced technologies to extract and repurpose valuable materials from end-of-life vehicles, such as polymers, fluids, and natural substances, thereby minimizing environmental impact. Additionally, rapid industrialization, urbanization, and heightened consumer awareness about sustainable practices are further accelerating the expansion of the automotive recycling market in the country. This trend aligns with global sustainability initiatives and supports the circular economy by reducing waste and conserving resources.

Challenges

Lack of Infrastructure for Automotive Recycling

The India Automotive Recycling Market growth is hindered by inadequate infrastructure. Limited access to advanced recycling technologies and insufficient facilities for processing end-of-life vehicles restrict efficient material recovery. Additionally, logistical challenges and the absence of a robust regulatory framework further constrain market growth. This lack of infrastructure impedes the industry's ability to meet rising demand and adopt sustainable practices effectively.

Impact of Escalating Geopolitical Tensions on India Automotive Recycling Market

Geopolitical tensions can have a multifaceted impact on the India Automotive Recycling Market. Trade disruptions and fluctuating international relations result in supply chain uncertainties and increased costs for importing advanced recycling technologies and raw materials. Additionally, these tensions can lead to volatile commodity prices, affecting the profitability and operational stability of recycling businesses. Heightened geopolitical risks may also divert governmental focus and resources away from developing robust recycling infrastructure and policies. Consequently, these challenges hinder the market's growth and its ability to meet sustainability goals effectively, while also affecting investor confidence in the sector.

India Automotive Recycling Market

Segmental Coverage

India Automotive Recycling Market – By Material

By material, the India Automotive Recycling Market is divided into Ferrous (Iron, Steel), Non-Ferrous Metals (Aluminum, Copper), Rubber, Glass, and Plastics segments. The ferrous segment holds the highest share in the India Automotive Recycling Market by material. It is primarily due to the high recyclability and substantial value of these metals, which are essential in producing new, cost-effective, and lightweight vehicles. Additionally, the extensive use of steel in automobile manufacturing and the well-established processes for its recovery and reuse further reinforce its leading position in the market.

India Automotive Recycling Market – By Component

Based on medical conditions, the India Automotive Recycling Market is divided into Engine & Transmission, Battery, Motor, Door, Windshield, Tire, and BIW (Body-in-White) segments.

India Automotive Recycling Market – By Vehicle Type

Based on vehicle type, the India Automotive Recycling Market is bifurcated into Passenger Vehicles and Commercial Vehicles segments. The passenger vehicles segment holds a higher share in the India Automotive Recycling Market by vehicle type. It can be attributed to the sheer volume of these vehicles on the road compared to commercial vehicles. As the number of passenger cars increases, so does the supply of end-of-life vehicles available for recycling. Additionally, passenger vehicles contain a significant amount of recyclable materials such as steel, aluminum, plastics, and rubber, making them valuable sources for material recovery. The high turnover rate and shorter lifecycle of passenger vehicles, driven by consumer demand for newer models, also contribute to the dominance of this segment in the market.

India Automotive Recycling Market – By Channel

On the basis of channel, the India Automotive Recycling Market is split into OEM Recycling and Aftermarket Recycling segments.

India Automotive Recycling Market – By Region

Geographically, the India Automotive Recycling Market is divided into North India, South India, East India, and West India regions.

Competitive Landscape

Major players operating in India Automotive Recycling Market include Mahindra MSTC Recycling Pvt Ltd, Toyota Motor Corporation, Volkswagen Group, Renault Group, BMW AG, Vardhman Auto Recycling LLP, MG Motor India Private Limited, Maruti Suzuki India Limited, RecycleKaro, and Tata Motors Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Material

• Ferrous (Iron, Steel)

• Non-Ferrous Metals (Aluminum, Copper)

• Rubber

• Glass

• Plastics

By Component

• Engine & Transmission

• Battery

• Motor

• Door

• Windshield

• Tire

• BIW (Body-in-White)

By Vehicle Type

• Passenger Vehicles

• Commercial Vehicles

By Channel

• OEM Recycling

• Aftermarket Recycling

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Automotive Recycling Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Scrap Metal Demand
         2. Government Regulations
         3. Growing Environmental Concerns
      2. Restraints
         1. Lack of Infrastructure
         2. Informal Market Practices
      3. Opportunities
         1. Increased Consumer Awareness
         2. Technological advancements
      4. Challenges
         1. Logistics & Collection System
         2. End-of-Life Vehicle Processing Costs
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Automotive Recycling Market: Marketing Strategies
5. India Automotive Recycling Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Material
         1. Ferrous (Iron, Steel)
         2. Non-Ferrous Metals (Aluminum, Copper)
         3. Rubber
         4. Glass
         5. Plastics
      2. By Component
         1. Engine & Transmission
         2. Battery
         3. Motor
         4. Door
         5. Windshield
         6. Tire
         7. BIW (Body-in-White)
         8. Others
      3. By Vehicle Type
         1. Passenger Vehicles
         2. Commercial Vehicles
         3. Other
      4. By Channel
         1. OEM Recycling
         2. Aftermarket Recycling
         3. Others
      5. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. North India Automotive Recycling Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Material
      2. By Component
      3. By Vehicle Type
      4. By Channel
7. South India Automotive Recycling Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Material
      2. By Component
      3. By Vehicle Type
      4. By Channel
8. East India Automotive Recycling Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Material
      2. By Component
      3. By Vehicle Type
      4. By Channel
9. West India Automotive Recycling Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Material
      2. By Component
      3. By Vehicle Type
      4. By Channel
10. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Automotive Recycling Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
11. Impact of Escalating Geopolitical Tensions on India Automotive Recycling Market
12. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Mahindra MSTC Recycling Pvt. Ltd
    2. Toyota Motor Corporation
    3. Volkswagen Group
    4. Renault Group
    5. BMW AG
    6. Vardhman Auto Recycling LLP
    7. MG Motor India Private Limited
    8. Maruti Suzuki India Limited
    9. RecycleKaro
    10. Tata Motors Limited
    11. Other Prominent Players
13. Key Strategic Recommendations
14. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Automotive Recycling Segmentation

Figure 2       India Automotive Recycling Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Figure 5       India Automotive Recycling Market Share, By Material, By Value, 2019–2030

Figure 6       India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Figure 7       India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Figure 8       India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

Figure 9       North India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Figure 10     North India Automotive Recycling Market Share, By Material , By Value, 2019–2030

Figure 11     North India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Figure 12     North India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Figure 13     North India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

Figure 14     South India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Figure 15     South India Automotive Recycling Market Share, By Material , By Value, 2019–2030

Figure 16     South India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Figure 17     South India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Figure 18     South India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

Figure 19     East India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Figure 20     East India Automotive Recycling Market Share, By Material , By Value, 2019–2030

Figure 21     East India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Figure 22     East India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Figure 23     East India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

Figure 24     West India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Figure 25     West India Automotive Recycling Market Share, By Material , By Value, 2019–2030

Figure 26     West India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Figure 27     West India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Figure 28     West India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

List of Tables

Table 1        India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Table 2        India Automotive Recycling Market Share, By Material, By Value, 2019–2030

Table 3        India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Table 4        India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Table 5        India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

Table 6        North India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Table 7        North India Automotive Recycling Market Share, By Material , By Value, 2019–2030

Table 8        North India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Table 9        North India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Table 10      North India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

Table 11      South India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Table 12      South India Automotive Recycling Market Share, By Material , By Value, 2019–2030

Table 13      South India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Table 14      South India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Table 15      South India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

Table 16      East India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Table 17      East India Automotive Recycling Market Share, By Material , By Value, 2019–2030

Table 18      East India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Table 19      East India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Table 20      East India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

Table 21      West India Automotive Recycling Market Size, By Value (USD Billion), 2019–2030

Table 22      West India Automotive Recycling Market Share, By Material , By Value, 2019–2030

Table 23      West India Automotive Recycling Market Share, By Component, By Value, 2019–2030

Table 24      West India Automotive Recycling Market Share, By Vehicle Type, By Value, 2019–2030

Table 25      West India Automotive Recycling Market Share, By Channel, By Value, 2019–2030

Table 26    Mahindra MSTC Recycling Company Overview

Table 27    Mahindra MSTC Recycling Financial Overview

Table 28    Toyota Motor Corporation Company Overview 

Table 29    Toyota Motor Corporation Financial Overview

Table 30    Volkswagen Group Company Overview

Table 31    Volkswagen Group Financial Overview

Table 32    Renault Group Company Overview

Table 33    Renault Group Financial Overview

Table 34    BMW AG Company Overview

Table 35    BMW AG Financial Overview

Table 36    Vardhman Auto Recycling LLP Company Overview

Table 37    Vardhman Auto Recycling LLP Financial Overview

Table 38    MG Motor India Private Limited Company Overview

Table 39    MG Motor India Private Limited Financial Overview

Table 40    Maruti Suzuki India Limited Company Overview

Table 41    Maruti Suzuki India Limited Financial Overview

Table 42    RecycleKaro Company Overview

Table 43    RecycleKaro Financial Overview

Table 44    Tata Motors Limited Company Overview

Table 45    Tata Motors Limited Financial Overview

Table 46      Other Prominent Players Company Overview

Table 47      Other Prominent Players Company Overview