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How is Scrap Car Recycling in India Different Compared to the West

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Scrap Car Recycling in India is a new concept that people are getting acquainted with after the New Vehicle Scrappage Policy – 2021 was announced. It’s evident that Vehicle Scrapping in India still requires a lot of educational and emotional driving factors to get an end-of-life vehicle scrapped and recycled. On the contrary, in western countries, people are well aware and don’t let the emotional barrier get in when it comes to letting go of a scrap vehicle. They easily get convinced to sell car for scrap and willingly opt for the end of life vehicle recycling. 

The New Vehicle Scrappage Policy will be advantageous for the Indian Scrapping Industry in the coming years. But in the past decade, nothing extraordinary was done to phase out the end of life vehicles and boost the sales and purchase of new cars. Also, the Indian Automotive Industry had taken a hit and encountered a major slowdown. To rise and shine and make the New Vehicle Scrappage Policy a success, India still needs to put in a lot of effort. To receive the desired results, educating people all across the nation should be the utmost priority. 

Today SYI is here to make you aware of the shortcomings of Scrap Car Recycling in India. Let’s know together with how it’s different compared to the western countries and what barriers lead to this difference. 

10 Reasons Why Scrap Car Recycling in India is Different from the Western Countries

Below are some of the notable reasons that will put light on the topic that we are here to talk about. The scenario of vehicle scrapping in western countries is way different. So, let’s know the limitations of scrap car recycling in India. 

1] Lack of Knowledge about End of Life Vehicle Recycling

End of Life Vehicle Recycling has benefited nations worldwide and helped them become self-reliant and reduce the imports of prominent metals. Additionally, end of life vehicle recycling helps create a circular economy, protects mother nature, and boosts the production of new cars. How? Well, the Steel and other prominent metals obtained after the completion of end of life vehicle recycling process means that lesser metals will be mined. 25% of the newly manufactured cars will be made from recycled materials. Sounds fantastic, right?

People in India haven’t been educated about such facts in years that have already passed. Hence they have no knowledge of how the end of life vehicle recycling plays an integral part in shaping the future of the Auto Industry. 

2] Less Awareness About Centralized Database or Platform for Vehicle Scrapping in India

The marketing efforts for Vehicle Scrapping in India have been vague compared to the western countries. If people want to sell car for scrap, they don’t find reliable sources to gather the basic information. With no access to a centralized platform and database, the vehicle scrapping journey seems like a tough road for scrap vehicle owners all across the nation. 

It’s the right time for the government to make efforts to improve the marketing efforts as Vehicle Scrapping Policy in India has already been rolled out. Doing so will help and encourage the citizens of India to scrap their end of life vehicles systematically.

3] Inefficiency of Indian Government in Educating People About How to Deal with a Scrap Vehicle

The government in India had been inefficient in educating the people in India about dealing with a scrap vehicle. Because of such reasons, people are not aware of the right ways of selling their scrap vehicles. They end up getting less value and hence find it feasible to run it with a few repairs here and there. Not knowing about the lethal after-effects of the scrap vehicle pollution on the environment further pushes vehicle owners to make rash decisions.

4] Difficulty in Finding Reliable Scrap Car Buyers in India

When you say ‘Scrap’ in India, people will relate to many household and other materials than vehicles. Only a handful of the population was aware that their cars could be sold and salvaged. Even though some chunk of the population started opting for end of life vehicle recycling and scrapping, there were hurdles in between. The major one was finding reliable scrap car buyers in India. 

The local junk dealers wouldn’t offer the vehicle owners a fair amount for their scrap vehicles. Also, they lack following a standardized procedure for processing and salvaging a scrap vehicle. Other risks that tagged along just added to the problems for a scrap vehicle owner. As a result, people who even wanted to sell car for scrap have been reluctant.

Scrap Yard India understands such problems and has made everyone’s work easier. We help in putting every kind of vehicle to pasture. We’re one of the best Scrap Car Buyers in India, and our Used Car Value Calculator will get you a fair, in fact, the best scrap car prices for your old scrap vehicle. 

5] Loose Ends Concerning the Legal Norms for Scrap Car Recycling in India

The process for scrap car recycling in India does require the scrap car buyers to follow the standard procedures. However, not every junk vehicle dealer focuses on following those legal routes. The lenient government norms in many cities across the nation just encourage such dealers. In fact, they also find alternate ways to get rid of scrap vehicles. Through unfair dealings, they fill their pockets and are the least bothered about anything else. The unpleasant end result has to be borne by the vehicle owners and mother nature to a great extent. 

If you sell car for scrap with Scrap Yard India, you wouldn’t have to worry about any discrepancy concerning legal norms. We follow all the standardized procedures to protect your interest and even mother nature. 

6] Burden Only on Giant Private Players and Challenges for Small Private Players

The scrap car recycling business is currently handled by prominent big players in the industry. It’s good that someone is taking care of the scrapping business in India. But at the same time, it becomes challenging for the small private players to expand in different cities. Creating their brand awareness from scratch takes time, and with a lack of government support, their work gets more difficult. Because of such reasons, this industry is dominated by giant private players who may stall the growth of smaller competitor brands.

7] Challenges of Providing Vehicle Scrapping Facilities in Rural Areas

Due to improper infrastructure for vehicle scrapping in India, providing these services in rural areas and smaller towns becomes challenging. Also, many people in such regions remove various parts of their vehicles and then sell car for scrap. They may keep these parts for further use or sell them to local junk dealers for cash. Illegal scrap car buyers may use those spare parts in other vehicles, which can have dangerous outcomes. 

From a business point of view, operating in smaller towns may not be viable for private players. So, it can be concluded that if the government makes an effort to make people aware of the right ways, the scenario of vehicle scrapping in India will be different. In a good way!

8] Burden on Existing Registered Vehicle Scrapping Facilities in India

By 2025, India estimates to phase out and scrap more than 22 million scrap vehicles all across the nation. However, there are not enough registered vehicle scrapping facilities in India, adding to the burden on existing ones. But, in countries abroad, the vehicle scrapping business is a way forward. Their people have access to a lot of facilities and can easily put their scrap vehicles to rest and rest in peace. 

9] Challenges in Setting Up New Registered Vehicle Scrapping Facilities in India

For the proposed New Vehicle Scrappage Policy to succeed, one of the most critical steps in setting up New RVSFs. The task of building the infrastructure for testing every scrap vehicle has to be quick as India already plans to phase 12 million end of life vehicles. The absence of a supporting infrastructure may make the implementation of the New Vehicle Scrappage Policy a bit challenging. 

At present, India only has 2 Authorized Scrapping Centers and 7 Automated Fitness Test Centers. This number is actually inadequate to cater hassle-free services in the vast Indian market. Apart from this, a worrying concern is simplifying the vehicle deregistration process. The experience of people trying to deregister their vehicles had not been great in the past years. That is why the majority of the masses who wanted to sell car for scrap were discouraged.

Whereas the scenario of vehicle scrapping and recycling is completely different in western countries. 

10] Delay in Making Provisions for Upfront Financial Incentives 

As per the New Policy for Scrap Car Recycling in India, the incentives scheme seems interesting. However, rolling out this voluntary scheme may take quite some time. If successfully implemented, it will encourage people in huge numbers to discard their junk vehicles and purchase BS-VI compliant vehicles. 

We hope that the above piece was informative. For more information about the scrap vehicle business in India, check our other blogs (check link). Stay tuned for more such articles!

About Scrap Yard India 

Since our inception, with the help and support of our core team, we have expanded our vehicle scrapping business in nooks and corners of India. We are connected to registered vehicle scrapping facilities in almost all parts of India. Our team will ensure that your scrap vehicle is dealt with legally while taking care of mother nature. The experienced professionals at SYI work hard to get you the best deal possible. 

Our partners and we are vetted to ensure that high-quality standards are met, and the best services are provided to our customers – our heroes. Our smart technology-driven Used Car Value Calculator will come in handy if you need an estimation for your scrap vehicle. You can compare the scrap car prices from our Used Car Value Calculator to other players in the market. Based on the results, you can proceed with scrapping your vehicle with us. 

Be rest assured, that you won’t be disappointed at any point. Contact us and get the best scrap prices, best vehicle scrapping experience, and answers to all your queries! 

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


– Scrap Car Recycling 3+

– Vehicle Scrapping in India 3+

– New Vehicle Scrappage Policy 3+

– Scrap Vehicle 3+

– End of Life Vehicle Recycling 3+

– Scrap Car Buyers 3+

– Sell Car for Scrap 3+

– Used Car Value Calculator 3

– Scrap Car Prices 2


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