While the government is yet to announce a vehicle scrappage policy, noting that it is ready to help car manufacturers in the matter should they choose to set up a plant for vehicle scrapping, we've got positive news from Maruti and Toyota. Maruti Suzuki and Toyota Tsusho Group today announced setting up the first of its kind vehicle dismantling and recycling joint venture - Maruti Suzuki Toyotsu Indian Private Limited (MSTI). The two will hold 50 percent equity in the joint venture.
Headquartered in New Delhi, Maruti Suzuki Toyotsu India Private Limited (MSTI) is established to set up its vehicle dismantling and recycling unit in Noida, Uttar Pradesh within 2020-21.
MSTI will be responsible to procure and dismantle End-of-Life Vehicles (ELVs). The process will include complete solid and liquid waste management as per the Indian laws and globally approved quality and environment standards.
The facility in Noida will be the first unit by MSTI and the JV will add more such units across India. The unit will have an initial capacity to dismantle around 2,000 vehicles per month. MSTI will source vehicles from dealers as well as directly from customers.
“Maruti Suzuki strongly believes in responsible recycling of vehicles after the end of its useful life. Through this Joint Venture, MSTI, we aim to promote recycling and support in resource optimization and conservation while using environment-friendly systems and processes. The scrapping of older vehicles in a scientific and environment-friendly manner will help to reduce pollution and also make the roads safer. A team of experts at MSTI will dismantle the vehicles using international technology and global standards,” Kenichi Ayukawa, Managing Director & CEO, Maruti Suzuki India Limited, said.
“Toyota Tsusho has started ELV recycling since the 1970s in Japan. We believe that we will be able to contribute to Indian society through our knowledge and experience for ELV business. The first vehicle dismantling and recycling unit of MSTI is just the initial step and we are eager to expand to the pan-India base with Maruti Suzuki,” Naoji Saito, CEO (Metal Division), Toyota Tsusho Corporation said.
In October this year, auto industry body SIAM said the draft guidelines on authorised vehicle scrapping facility (AVSF) in India will help in setting up such facilities in an organised manner while reiterating that the sector is waiting for incentive-based Vehicle Scrappage Policy from the government.
As per the draft AVSF guidelines, individuals, firms society or trust will be allowed to set up scrappage facility subject to meeting eligibility criteria and receiving authorisation from licensing authority. The authorisation will be valid for 10 years which shall be renewable for another 10 years. Prospective scrappers must have usable treatment with a minimum area of 4,000 sq metre for small vehicles and 8,000 sq metres for all other bigger vehicles.