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How to Operate an Environmentally Sound Scrap Car Recycling Facility in India

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Lately, the topic “Commercial Vehicle Scrapping” has gained impetus as the Indian Government announced the New Vehicle Scrapping Policy. This Policy promotes environment-friendly practices and entails perks for vehicle owners who decide to scrap a vehicle. Scrap Car Recycling is a crucial part of the entire process.  

India is considered to be the 5th most significant market for cars. With a vast population using cars and other vehicles for commuting, there arises a need where the unfit vehicles should be discarded. That is what the Indian Government has aimed for. Commercial Vehicles older than Fifteen years and Personal Vehicles older than Twenty years that fail the fitness test will be mandatorily deregistered. As per the National Green Tribunal (NGT), by 2025, the number of End-of-Life-Vehicles will reach over 21 million. Hence, the traffic at Scrap Car Recycling Facilities will definitely be very high in the foreseeable future.

If you are looking forward to taking advantage of this lucrative opportunity, now will be the right time to get started. But the important question is – How do you begin? What aspects need to be taken care of? Well, take the burden off your shoulders and relax as we have got your back! If you plan to be a Scrap Car Dealer or operate a Scrap Car Recycling Facility in India, you’ve landed at the right place. 

Scrap Yard India will be your guide for today. Allow us to explain in detail about how to operate a Scrap Car Recycling Facility in India. Let’s dive in!

The Guide – Operating a Scrap Car Recycling Facility in India

Vehicle Scrapping in India represents a massive potential for scrap generation. Also, being the 3rd largest steel-producing nation, India has an excellent scope for auto-recycling. The use of scrap in steelmaking will not only push the automobile sector but also be a great aid in saving fuel, creating a circular economy of steel, and generating employment.

Vehicle Scrapping in India has been a highly unorganized sector where ELVs are stripped unsafely and all sorts of recovered metals, refurbished parts are sold negligently. We believe that you wouldn’t want to be a scrap car dealer who operates unsystematically. So, here’s a guide that will help you ace the vehicle recycling game while you follow environmentally sound practices. Let’s get started!

Typically, the process of collecting and handling the End-of-Life Vehicles comprises some crucial stages. For starters, the scrap vehicle is transferred to a designated treatment facility. Then, the vehicle goes through procedures like – Depollution, Dismantling, Recycling, etc. However, there are various modes of organizing this transfer. 

Time to know about the four major stages of the environmentally sound Vehicle Recycling Process in 3,2,1…….

To scrap a vehicle, it is first categorized as follows – Premature ELVs (accident-prone) & Natural ELVs (old ones.) The Recycling process starts at the registered vehicle treatment facility. 

At Stage 1, it goes through the Depollution Process. Here, the following activities take place –

  • Removal of Battery, Tyres, Fluids, Airbag, parts containing mercury, etc
  • Reuse / Reprocessing (of batteries, fuel, fluids)

(As the removed materials are corrosive/explosive, this process must follow strict safety and health rules and regulations. Any activity leading to environmental contamination must be strictly prevented at every cost. This includes storing hazardous materials and components separately. Additionally, adequate training should be provided to employees.)

Once the scrap vehicle is de-polluted, it needs to be dismantled adequately.

At Stage 2, it’s all about Dismantling. Now, the following actions are taken – 

  • Removal of Vehicle Parts/Materials 
  • Reuse / Recycling (of different parts/materials)

[Recycling Facility Owners must ensure to treat all the wastewater that is being produced at Stage 1 & 2 (de-pollution and dismantling) through legal procedures]

The remaining part of the scrap vehicle is crushed and processed to the next stage in compact form.

At Stage 3, the process of Shredding begins. Here, the following activities are carried –      

  • Shredding the Vehicle, Reclaiming of Metals 
  • Recovery / Recycling (of ferrous metals)

(The entire separation process is carried by complex machinery like – magnetic separators, infrared systems, air classifiers, etc. To produce secondary metal, the scrap is usually processed in smelters.)

At Stage 4, the Treatment Process begins, this includes – 

  • Treatment of Light and Heavy ASR
  • Recovery / Recycling (of ASR to secondary energy, solid fuels, etc.)

Finally, the remaining waste is then either dumped in landfills or processed to incinerators for energy recovery. In the overall ELV recycling process, one of the most problematic steps is ASR, as it requires further technological advances. 

Well, that was a sneak peek of how the Vehicle Recycling Process works. If you want to operate a scrap recycling facility, you must follow all the obligations concerning the entire process organization. You need to have adequate structure, documentation procedures, and legal equipment for operation. Your facility should also abide by the Environmental Laws laid by the Indian Constitution. There are many other things that should be taken care of. Our experts are here to guide you and they will help you start on the right foot.

Your Contribution – Being a Scrap Car Dealer / Setting up a Scrap Car Recycling Facility

  • You will contribute to making the roads safer in the nation by helping vehicle owners take old/end-of-life vehicles off the road.
  • Additionally, you will contribute towards pollution reduction by following scientific methods to scrap a vehicle.
  • Promote Recycling.
  • Benefit the environment and people by adopting safe, responsible, and efficient Scrap Car Recycling practices.
  • With the use of Automated Technologies, dismantling, appropriately shredding scrap vehicles would maximize recycling and help in resource optimization, recovery, conservation.
  • You will also contribute to increasing the availability of scrapped materials/metals such as aluminum, steel, plastic, rubber, etc. 
  • These materials will be used to manufacture various automobile parts, leading to a significant (30-40%) cost reduction.

For more detailed/intricate information, feel free to get in touch with one of our experienced team members!

About Scrap Yard India 

Scrap Yard India believes in responsible recycling of scrap vehicles after they reach the end of their useful life. The team at SYI desires to take the scrap vehicle recycling game to the next level. Our Management Solutions (SYIMS) aims towards building “Smart Recycling Facilities for the Smart Generation.” From Planning, Procurement, Installation to Training, Production, Compliance – we do it all! Our safe operating practices and transparency in scrap vehicle handling have helped us gain trust and strengthen our roots.

We moved ahead in our journey with the aim of building a sustainable environment. Our motive has been – to make people aware of how legitimate vehicle scrapping/recycling can help them save energy. The team at SYI truly understands the significance of a profit-making process and sustainable industrial environment. So, we ensure that we only use world-class equipment and processes to recycle vehicles with zero damage to the environment. We believe in not only promoting our products but also in providing proactive services to our clients and customers at the comfort of their homes. Since our inception, we have successfully helped citizens all over India in both – personal and commercial vehicle scrapping without a hitch.

To understand more about the overall process of operating a Registered Vehicle Recycling Facility or for any other queries, contact us by clicking here.

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

Keywords: Scrap Car Recycling | Vehicle Scrapping in India | Commercial Vehicle Scrapping | Scrap a Vehicle | Scrap Car Dealer 


  • Please check if the information for all the “Stages of Recycling Process” is appropriate. If not, please help us with the details.
  • The topic has been changed from (How to set up a Scrap Car Recycling Facility in India) to the (How to Operate an Environmentally Sound Scrap Car Recycling Facility in India) for better reader engagement.


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