DUBLIN--(BUSINESS WIRE)--The "Indian End-of-Life Vehicle and Dismantling Market Research Report: By Fuel, Sector, Component, Vehicle, Four-Wheeler - Global Industry Analysis and Growth Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
India is reeling under high levels of air pollution, which is why the National Green Tribunal (NGT) and Supreme Court have passed stringent regulations, which have considerably reduced the number of years an automobile can be driven for. For instance, in Delhi/NCR, the maximum age of petrol and diesel vehicles has been brought down to 15 and 10 years, respectively.
This factor is predicted to propel the Indian end-of-life vehicle and dismantling market, which generated $3,474.0 million revenue in 2019, at a 17.2% CAGR between 2020 and 2030 (forecast period).
Till 2030, the ferrous metal category would continue dominating the Indian end-of-life vehicle and dismantling market, because ferrous-metal components make up for around 70% of an average vehicle. These components can be easily extracted by using a strong magnet, and they also remain in high demand due to their easy reusability factor.
The diesel classification contributed the highest revenue to the Indian end-of-life vehicle and dismantling market during the historical period (2014-2019), as most commercial vehicles, especially heavy-duty buses and trucks, and a significant number of passenger automobiles are diesel based.
During the forecast period, the organized bifurcation would witness higher CAGR, of 48.6%, in the Indian end-of-life vehicle and dismantling market. This is ascribed to the fact that organized companies have begun taking interest in the domain, with the closing of unregulated scrapping units by the government. Established automakers, such as Toyota Motor Corp., Mahindra and Mahindra Ltd., and Suzuki Motor Corp., have already started investing heavy amounts in setting up modern vehicle recycling and salvaging units.
The four-wheeler division held a significant share in the Indian end-of-life vehicle and dismantling market in 2019, owing to economic growth. With an increase in their disposable income, a rising number of people in the nation are purchasing four-wheeled automobiles for personal as well as commercial use. Once they reach the end of their life, they will serve as the input for junkyards.
Maharashtra was the most productive state in the Indian end-of-life vehicle and dismantling market in the past, as the high purchasing power in the state results in a heavy sale of automobile, which, over time, are sent for scrapping. In the coming years, the NCT of Delhi division would grow the fastest in the industry, on account of its high air pollution levels, which has impelled the government to reduce the vehicles' maximum service life.
Market Players Taking Numerous Steps to Dominate Competition
Seeing the high demand for automobile scrapping and recycling services, in the wake of the shutting down of unorganized salvage yards by government bodies, numerous established companies have entered the Indian end-of-life vehicle and dismantling market, with a number of strategic moves.
For instance, in November 2019, a scrapping unit, by the name of Cero Recycling, was set up in Greater Noida, as a joint venture between Metal Scrap Trade Corporation Limited (MSTC), a government body, and Mahindra Accelo, which is the steel processing arm of Mahindra and Mahindra Ltd. In the next three years, Mahindra and Mahindra has plans to set up 25 more such facilities in the country.
Moreover, also in November 2019, a joint venture was founded by Suzuki Motor Corp. and Toyota Motor Corp., for setting up an automobile dismantling facility in Noida. Once operational, the unit will be able to process 2,000 vehicles in a month, after which the two Japanese automakers hope to establish more such recycling plants in the nation.
- Introduction of modern techniques in dismantling processes
- Single window clearance and operations
- Adding value to secondary materials through recycling and reuse
- Government policies
- Recent judgments on vehicle life
- Closing of unregulated scrap yards
- Impact analysis of drivers on market forecast
- High initial setup cost
- Non-availability of land
- Lack of safety and hygiene standards
- Too many policies and regulatory controls
- Less efficiency of the unorganized sector
- Located nearby residential areas
- Lack of interest from entrepreneurs
- Impact analysis of restraints on market forecast
- Social, health, environmental, and energy benefits
- Saving of budgetary deficit and forex
- Regaining lost opportunity for real estate
- Abrupt growth in the automobile sector in India
For more information about this report visit https://www.researchandmarkets.com/r/92bc1f
Laura Wood, Senior Press Manager
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900