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8 Important Terms Everyone in the Scrap Car Recycling Industry should be Aware of

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All the people love their new, gleaming cars. Nevertheless, a day will come when their vehicle’s shine will wear off, and they will need to bid it goodbye. Today, as a Scrap Car Dealer, you can help them to do so in an environmentally sound manner – through Scrap Car Recycling. The New Vehicle Scrappage Policy that was recently approved by the government of India has added a feather to the cap. Let us see how – 

  • By 2025, more than 21 million vehicles will reach their end of useful life. 
  • Subsequently, the End of Life Vehicle Recycling business will grow by multiple folds.
  • Car Recycling will help to cut the metal import costs.
  • Environmentally sound practices for metal recycling will also contribute to curbing pollution.
  • The overall Auto Sector in India will enjoy the outcomes, benefits, and prosper in the coming years.

If you’re already a part of the Scrap Car Recycling Industry or want to step foot in this business, you must be aware of some important terms. We are all set to shed light on this topic. Let’s dive in instantly!

8 Important Terms for Everyone to know in Scrap Car Recycling Industry

Before we proceed, let us tell you one thing, you will have to follow a set of guidelines. These guidelines are applicable for vehicles that fall under the below categories – 

  • Vehicles that have reached the End of their useful Life
  • The vehicles that have been declared unfit for use by the Legal Authorities (as per the New Vehicle Scrappage Policy)
  • The vehicles that no longer have a valid registration
  • If an owner willingly decides to scrap a vehicle

The set guidelines are notified in the public interest and for the protection of the environment. They are meant for safe, regulated disposal of scrap vehicles as unauthorized car recycling processes can have fatal outcomes. These guidelines apply to all – 

  • Last Registered Vehicle Owners
  • Automotive Dismantling Centers
  • Automobile Collection Centers
  • AVSFs (Authorized Vehicle Scrapping Facilities) | RVSFs (Registered Vehicle Scrapping Facilities)
  • Automotive Waste Products Recyclers, etc 

By now, you must’ve got an idea why the set guidelines are crucial, and abiding by them is the best option. The first step to taking your Scrap Car Recycling business to the next level is to ensure that all the legalities are fulfilled. Having said that, we will now list 8 important terms that everyone in the Scrap Car Recycling Industry should be aware of. 

1] Licensing Authority

Licensing Authority is either the Transport Commissioner or any other Officer designated by India’s State/UT Government.

2] Authorized Scrapper 

This term implies to a person, society, firm, company, or trust owning and operating an AVSF (Authorized Vehicle Scrapping Facility.)

3] Authorized Vehicle Scrapping Facility | AVSF 

This means any establishment that has been issued an authority by the legal bodies in India to scrap a vehicle. These establishments have the right to carry out scrapping and dismantling operations by following the legally set guidelines.

4] Scrapping Yard | Scrapyard

Refers to the designated area/location/premises of the AVSF. Here, all the dismantled parts of the scrap vehicle are carefully processed for future treatment. This is done using shredders/other necessary machinery. The scrap parts are then sold to the car recycling / metal recycling / end of life vehicle recycling companies. 

5] End of Life Vehicles | ELVs

Implies to all the vehicles that are no longer legally registered or if their registration is canceled (Under Motor Vehicles Act 1988.) Even if the court of law passes an order to cancel the registration, the vehicle will be considered ELV. Other reasons include – self-declaration by the registered owner of the vehicle because of circumstances like fire, natural disaster, accidents, riots, etc.

6] Certificate of Deposit

This certificate is issued by the respective AVSF. It implies the transfer of ownership of the scrap vehicle – from the former registered owner – to the authorized scrap car dealer / scrap vehicle dealer. After the approval for the Certificate of Deposit, the scrap car dealer can process the scrap vehicle for further treatment.

7] Certificate of Vehicle Scrapping

This Certificate is issued by the designated AVSF. It recognizes the final disposal of the scrap vehicle. Preserving it safely is the responsibility of the Authorized Scrap Car Dealer.

8] Final Disposal

This term means that the treatment of the scrap vehicle is complete and is not capable of being used again. To scrap a vehicle, it is essential to dispose of its engine in compliance with CPCB Guidelines. 

Another term is – Warehouse. It refers to a designated location/area within the premises of the respective AVSF. Here, the scrap is processed. The usable parts are first refurbished, then cataloged, stored, and finally sold for re-use to the car recycling / metal recycling / end of life vehicle recycling companies.

We know you may have some questions already. Let’s proceed ahead to get some answers then!

Some FAQs – Concerning the Scrap Car Recycling Business in India

Q: Is the Scrap Car Recycling / End of Life Vehicle Recycling business profitable in India?

A: Yes, it is. The End of Life Vehicle Recycling has picked up pace after the approval of the New Vehicle Scrappage Policy. This business line will bloom in the coming years as per the experts. 

Q: How can you set up a Scrap Vehicle Recycling / Scrap Car Recycling facility in India?

A: The first and foremost need is to research about the metal recycling industry and know the legal rules and regulations. If you want to know about this in detail, Scrap Yard India will be your aid. Our team of experienced experts has already helped many people.

Q: Is it compulsory to abide by the environmental laws set up by the Legal Authorities in India?

A: A straightforward answer is – Yes. The New Vehicle Scrappage Policy has been approved, keeping in mind environmental safety. The Scrap Car Recycling process can harm mother earth if not appropriately managed. Metal Recycling will significantly help in reducing air and water pollution and will also pave the way for the production of new raw materials.  Q: Can you set up a Scrap Car Recycling Facility in India without a license?

A: No, you can not do this. Depending on the type of scrapping business you want to get in, you will need to get the required license from the legal authorities. Once you have it, you can set up your scrapping business.

Q: How to operate an Environmentally Sound Scrap Car Recycling facility in India?

A: There are many factors to consider. Explaining this in a few sentences wouldn’t give you a fair idea. To know more about how to operate an environmentally sound vehicle recycling facility in India, click here.

If you have more intriguing questions regarding Scrap Car Recycling or Scrapping Business, get in touch with our team’s experts. They will guide you and add to your knowledge base! 

About Scrap Yard India

We believe in making things simpler, easier for our Customers as well as for Businesses. Throughout, we have helped many Entrepreneurs to set the right foot in this business. To start a business, many prerequisites are required, like planning, legal compliance, government license/permits, etc. You do not need to worry about the legalities when you choose SYI. We do it all – from Planning, Procurement, Installation to Production, Training, Compliance under a single roof.

Scrap Yard India has been a top choice in the scrap vehicle business because of our transparency in handling the entire process and safe operating practices. We help people all across India to set up a new Authorized Vehicle Scrapping Facility in the nation. Our desire is to take the Vehicle Scrapping and Recycling business to the next level. 

Our company understands the need for full compliance with applicable laws and delivery of excellent environmental performance in the Indian markets. If you are thinking of establishing your presence and prospering in this business line, SYI will help you in all the ways possible. Book a free consultation today with us, and be rest assured. You will get answers to your questions, and we will be happy to see you grow, prosper and earn profits. 

A message from SYI’s team – Reduce, Recycle, Repeat!

– Scrap Car Recycling (3+)
– Car Recycling (3+)
– End of Life Vehicle Recycling (3+)
– Metal Recycling (3+)
– Scrap a Vehicle (3)
– Scrap Vehicle (3+)
– Scrap Car Dealer (3+)


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