Tata Motors opens its second vehicle scrapping facility

Tata Motors has launched its second Registered Vehicle Scrapping Facility in Bhubaneswar, Odisha. The brand launched its first scrapping facility in Jaipur, and as a part of its plan to have a dozen facilities, it aims to open at least one unit in each state before expanding further.

1. With the second facility, Tata Motors can scrap over 25,000 vehicles annually
2. Mahindra, Maruti Suzuki Toyotsu also run such scrapping hubs in India

This second scrapping facility is developed and run by Tata Motors’ partner Empreo Premium that will scrap passenger and commercial vehicles of all brands that have reached the end of their lifecycle. Tata Motors mentions that this facility has the capability to disassemble 10,000 vehicles per year.

The facility was inaugurated by minister of Water Resources, Commerce and Transport, Government of Odisha, Tukuni Sahu. She mentioned that this will be a significant step towards reducing the environmental impact of the transportation sector and will not only provide a convenient and safe way to dispose of old vehicles but also promote the adoption of cleaner and more efficient modes of transportation.

Rajesh Kaul, business head for Trucks, Tata Motors added that the intention behind these decentralised facilities is to benefit “the customers, foster economic growth, generate employment opportunities and fulfill the need of eco-friendly vehicle scrapping.”

The Indian government estimates that India has 51 lakh light motor vehicles that are older than 20 years and another 34 lakh which are older than 15 years. There are around 17 lakh Medium and Heavy Commercial Vehicles (M&HCVs) older than 15 years without a valid fitness certificate. The vehicle scrappage ecosystem is expected to attract additional investments of around Rs 10,000 crore and 35,000 job opportunities, government estimates suggest.

The Centre's vehicle scrapping policy, which was announced in early 2021, envisages that the vehicle owner will get approximately 4-6 percent discount on the ex-showroom price on the purchase of a new vehicle, in addition to getting a discount of up to 25 percent and 15 percent on the road tax of personal vehicles and commercial vehicles, respectively.

Apart from Tata Motors, Mahindra and Maruti Suzuki Toyotsu also run scrapping facilities in India.