India – Advancing Automotive Sustainability: Compliance, Recycling, and Circular Solutions

Dr Prabhakar, Founder & CEO of Global PCCS, a global service provider of compliance, sustainability, consulting, training, and regulatory solutions based in India, discusses the company’s role in vehicle recycling, type approval certifications, and the changing future of sustainability in the automotive industry. With a strong focus on environmental regulations, circular economy practices, and emerging challenges in EV and hybrid vehicle recycling, Dr Prabhakar shares insights into how Global PCCS is shaping the future of sustainable mobility through innovation, compliance, and collaboration with industry stakeholders.

Enhancing Vehicle Recycling and Compliance

Global PCCS plays a pivotal role in vehicle recycling by ensuring that automotive components meet strict environmental standards while maximizing material recovery. Global PCCS works with top OEMs to support on-type approval certifications that directly impact the recyclability of new vehicle models by setting benchmarks and validating sustainable designs.

1. Contribution to Vehicle Recycling

• • • Material Recovery & Circular Economy: Global PCCS supports OEMs for reuse, recycling, and recovery of vehicle components to minimize waste.
    • Compliance with ELV (End-of-Life Vehicle) Directives: Global PCCS ensures manufacturers adhere to EU, India, and global ELV regulations.
    • Sustainable Material Integration: Global PCCS supports OEMs (Original Equipment Manufacturers) in using recyclable materials in new vehicles with the help of product carbon footprint calculations or LCA.
    • Optimized Dismantling & Shredding Processes: Global PCCS provides best practices to recyclers for efficient metal and plastic separation and end-to-end implementation support.

2. Impact on Type Approval & Recyclability of New Vehicles

• • • Regulatory Compliance: Global PCCS works with automakers to ensure vehicles meet ISO 22628, EU Type Approval, and UNECE regulations.
    • Recyclability Certifications: Global PCCS assesses new materials and manufacturing processes to improve vehicle recovery rates.
    • Eco-Design Support: Global PCCS advises on sustainable design choices and reducing hazardous substances like lead, mercury, hexavalent chromium, PFAS, and cadmium.
    • Lifecycle Assessment (LCA) Guidance: Global PCCS helps manufacturers evaluate carbon footprint & environmental impact during vehicle production.

Global PCCS bridges the gap between vehicle recyclability, sustainability, and regulatory compliance, ensuring that new vehicle models contribute to a greener automotive future.

Overcoming Challenges in India’s ELV Recycling Sector

With India’s growing focus on sustainability and circular economy, the End-of-Life Vehicle (ELV) recycling sector faces several challenges. However, Original Equipment Manufacturers (OEMs) are actively working to adapt and improve recyclability.

Key Challenges in India’s ELV Recycling Sector

1. Dominance of the Informal Sector: Over 60-80% of ELVs are dismantled by unregulated scrap yards, leading to low material recovery and environmental hazards.
2. Lack of Sufficient Recycling Infrastructure: India currently has limited authorized vehicle scrappage centers, making large-scale ELV processing difficult. However, it is expected that 100+ authorised facilities will be established soon.
3. Hazardous Waste Disposal Issues: Battery, oil, and electronic waste from ELVs require specialized handling, which informal recyclers often neglect.
4. Consumer Awareness & Incentives: Many vehicle owners lack awareness about proper ELV disposal, and financial incentives for formal scrappage remain limited.

How OEMs Are Adapting to These Challenges

1. Setting Up Authorized Scrappage Centers: OEMs like Maruti Suzuki, Tata Motors and Mahindra & Mahindra are investing in modern vehicle recycling facilities in partnership with the government agencies.
2. Designing for Recyclability: New models incorporate sustainable materials and easier dismantling designs to improve recyclability.
3. Extended Producer Responsibility (EPR) Compliance: Automakers are implementing traceability systems to track vehicle disposal and material recovery.
4. Partnerships with Recycling Firms: Collaborations with government & private recyclers ensure ELVs are processed efficiently and legally.
5. Consumer Awareness Programs: Some OEMs offer buyback incentives, discounts on new vehicles, and digital platforms to guide customers in responsible ELV disposal. India’s ELV recycling sector is undergoing rapid transformation. Despite infrastructure & regulatory challenges, OEMs are driving sustainable solutions to make ELV recycling efficient, profitable, and environmentally responsible.

EPR in India: Shaping the Future of Sustainable Vehicle Recycling

Extended Producer Responsibility (EPR) is gaining importance in India’s automobile sector as the government pushes for sustainable vehicle disposal and recycling. The EPR framework for automobiles, aligned with the End-of-Life Vehicle (ELV) policy, aims to make manufacturers responsible for collecting, recycling, and properly disposing of ELVs.

Current EPR Perspective for Automobiles in India 

1. ELV Policy & Vehicle Scrappage Centers
   • • The Indian government launched the Voluntary Vehicle Scrappage Policy (2021), encouraging automakers to participate in vehicle take-back programs.
     • Authorized scrappage centers are being set up in collaboration with OEMs like Tata Motors, Maruti Suzuki, and Mahindra.
2. Material Recovery & Recycling Obligations
   • • Under EPR, OEMs must ensure scientific disposal of hazardous components (batteries, airbags, fluids, plastics).
     • Targets for recycled content in new vehicles will also be introduced in January 2025.
3. Regulatory Compliance & Challenges
   • • Automakers are required to track ELVs; the informal sector still dominates ELV recycling, leading to inefficient material recovery.
4. Future Outlook
   1. • India is expected to introduce mandatory EPR guidelines for the automobile sector, similar to Europe’s ELV Directive.
      • Digitization (Blockchain & AI) could be used to track ELV collection and material recovery.

EPR for automobiles in India is still in the early stages, but OEMs, policymakers, and recyclers are working towards a structured take-back and recycling system to ensure sustainable vehicle disposal and material recovery.

Tackling EV Recycling Challenges

The rise of electric and hybrid vehicles (EVs & HEVs) presents new recycling challenges, primarily due to critical raw materials (CRMs) like lithium, cobalt, and nickel and hazardous components such as high-voltage batteries and rare earth magnets. Global PCCS plays a key role in developing sustainable EV recycling solutions to tackle these challenges.

Key Challenges in EV & Hybrid Vehicle Recycling 

1. Battery Recycling & Safety Risks
   • • EVs contain high-voltage lithium-ion batteries, which are flammable and toxic if not disposed of properly.
2. Recovery of Critical Raw Materials (CRMs)
   • • Extracting cobalt, lithium, nickel, and rare earth metals is complex and expensive.
     • Traditional pyrometallurgy (smelting) methods cause high carbon emissions.
3. Lack of Standardized Recycling Infrastructure
   1. • India and many global markets still lack large-scale EV battery recycling plants.
      • EV batteries have different chemistries, making recycling non-uniform and costly.

Global PCCS is Addressing These Issues

1. Advising  Advanced Recycling Technologies
   • • Hydrometallurgical & Direct Recycling methods for efficient metal recovery.
     • AI-based battery diagnostics to optimize battery reuse before recycling.
2. Battery Circular Economy
   • • Collaborating with OEMs to implement battery take-back schemes.
     • Promoting second-life applications (reuse in energy storage systems).
3. Regulatory & Industry Partnerships
   1. • Supporting EPR (Extended Producer Responsibility) frameworks for EV batteries.

Key Strategies for Sustainable EV Recycling

✔ Scaling Battery Recycling Plants – Investing in Li-ion battery recycling units.
✔ Material Substitution – Encouraging alternative battery chemistries (e.g., sodium-ion).
✔ Closed-Loop Systems – OEMs designing batteries for recyclability from production.
✔ AI & Robotics Integration – Automating battery dismantling & material separation.

Global PCCS provides services in EV recycling solutions to tackle battery waste, critical material shortages, and sustainability challenges. Collaboration between policymakers, recyclers, and automakers will be key to ensuring a circular economy for EVs.

India’s Circular Economy

India has a deep-rooted culture of reuse and recycling, with informal sectors historically managing vehicle repairs, part reuse, and metal recovery. As the country shifts toward a circular economy, this cultural mindset is being modernized with policy measures and industry initiatives to enhance sustainability in the automotive sector.

India is Leveraging its Recycling Culture for a Circular Automotive Economy

1. Strong Informal Recycling Networks
   • • India’s scrap dealers and mechanics have long practiced vehicle part recovery, minimizing waste.
     • The transition involves formalizing these networks into structured recycling systems.
2. Increased Vehicle & Component Reuse
   • • The demand for refurbished spare parts is high, reducing the need for new manufacturing.
     • Emerging remanufacturing models encourage OEMs to design for disassembly & reuse.
3. Growing EV Battery Recycling Industry
   1. • Companies need to recycle lithium-ion batteries from electric vehicles to extract valuable metals.
      • Second-life applications for EV batteries in energy storage are expanding.

Key Policy Measures Supporting Circularity in the Auto Sector 

• • • Vehicle Scrappage Policy (2021) – Encourages ELV (End-of-Life Vehicle) recycling with incentives for old vehicle disposal.
    • Extended Producer Responsibility (EPR) for Batteries – Mandates OEMs to manage EV battery recycling & reuse.
    • Material Recovery Targets – New policies are pushing for higher recycled content in new vehicles.
    • Make in India & Green Manufacturing – Promoting low-carbon vehicle production using recycled materials.

India’s recycling mindset and policy-driven reforms are accelerating the transition to a circular automotive economy. By formalizing vehicle recycling, incentivizing material recovery, and enforcing sustainability regulations, the country is paving the way for eco-friendly mobility solutions.

Strategies for Effective Recycling

For manufacturers and recyclers, achieving a balance between profitability and sustainability is essential. While recycling initiatives help reduce waste and conserve resources, they must also be financially feasible. Businesses can ensure this by adopting efficient recycling models, innovative technologies, and regulatory compliance.

Strategies to Make Recycling Profitable & Sustainable

1. Implement Circular Economy Practices
   • • Remanufacturing & Reuse: Recovering and refurbishing vehicle parts, batteries, and metals reduces production costs.
     • Design for Recycling (DfR): Using easily recyclable materials helps streamline waste management and cost savings.
2. Leverage Advanced Recycling Technologies
   • • AI & Robotics: Automating sorting and material recovery enhances efficiency and lowers operational costs.
     • Hydrometallurgical & Pyrometallurgical Methods: Improve extraction of rare earth metals from EV batteries.
3. Monetize Recycled Materials
   1. • Selling recovered aluminum, steel, and lithium creates new revenue streams.
      • Second-life applications (e.g., repurposing EV batteries for energy storage) extend resource value.

The Role of Regulations in Ensuring Profitability & Compliance

• • • Extended Producer Responsibility (EPR): Requires manufacturers to take responsibility for product lifecycle management.
    • Government Incentives: Subsidies for eco-friendly recycling plants, ELV processing, and green manufacturing.
    • Recycling Mandates & ESG Compliance: Regulations like the EU ELV Directive & India’s Vehicle Scrappage Policy drive long-term financial and environmental sustainability.

Global PCCS has been working in sustainability for more than a decade by providing cost-effective services and integrating cost-effective recycling strategies, leveraging technology, and following regulations, businesses can transform sustainability into a profitable venture while protecting the environment.