Tata International, Tata Motors Start Vehicle Scrapping Facility in Pune

Tata International and Tata Motors have inaugurated a new vehicle scrapping facility in Pune, capable of dismantling 21,000 end-of-life vehicles annually. This unit, which caters to commercial and passenger vehicles across all brands, marks Tata Motors’ sixth facility under the Re.Wi.Re (Recycle with Respect) initiative.

Expanding Scrapping Network

The Pune facility joins Tata International’s existing network of scrapping centres located in Jaipur, Bhubaneswar, Surat, Chandigarh, and Delhi NCR. Equipped with specialised dismantling stations for tyres, batteries, oils, and gases, the unit ensures compliance with India’s vehicle scrappage policy. As of September 2024, India has 63 operational registered vehicle scrapping facilities (RVSFs), with 60 more under construction and 40 in the planning stages. Despite this expansion, the implementation of the vehicle scrappage policy remains slow due to limited facilities, inadequate incentives, and low awareness.

Scrappage Potential and Challenges

An additional 570,000 vehicles will exceed the 15-year age limit by FY25 and FY26, while 9,00,000 government vehicles are set for mandatory scrapping in the first phase of the policy. However, private and government scrap applications remain low, with only 44,803 and 41,432 submissions, respectively, as of August 31, 2024. Challenges such as insufficient RVSFs, lack of policy awareness, and registration date complexities continue to hinder the policy’s widespread adoption.

Tata Motors Share Performance

The stock of Tata Motors trades at ₹796.75 per share and is up by 0.85% from its previous day’s closing price, Over the past month the stock has fallen by 3.5%, While over the past year, it has been appreciated by 12.76%. 

Conclusion

The Pune scrapping unit signifies a critical step toward structured vehicle recycling and reflects Tata Motors’ commitment to sustainable practices. By addressing the growing demand for organized scrapping solutions, the facility contributes to a cleaner and more regulated automotive ecosystem.

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