Dr. Prabhakar Y.B., Founder & CEO of Global PCCS, a global service provider of compliance, sustainability, consulting, training, and regulatory solutions based in Bangalore, India, highlights how India’s automotive sector is entering a transformative phase with the introduction of the Environment Protection (End-of-Life Vehicles (ELVs)) Rules, 2025.
By formally introducing Extended Producer Responsibility (EPR) for ELVs, this framework represents a significant step toward sustainability while also presenting important operational challenges.
A Transformative Framework
India’s automotive industry stands on the brink of transformation with the implementation of the Environment Protection (End-of-Life Vehicles) Rules, 2025, effective April 1, 2025. These landmark regulations formally introduce EPR for ELVs — aligning India’s recycling and waste management practices with international sustainability norms.
As someone closely involved in India’s EPR policy discussions, I view this framework as a pivotal step toward a sustainable and circular economy. However, understanding and addressing the operational and systemic complexities of this transition are equally critical.
The Framework and Its Reach
Under the new EPR regime, vehicle manufacturers, importers, and sellers must:
-
- Meet prescribed vehicle scrappage targets.
- VAHAN Portal (vscrap.parivahan.gov.in): This is the primary digital platform for the registration and administrative part of the scrappage process.
- India’s vehicle scrappage process is a collaborative effort involving both the VAHAN portal (specifically the V-SCRAP portal) and the Central Pollution Control Board (CPCB) guidelines.
- Obtain non-transferable EPR certificates from Registered Vehicle Scrapping Facilities (RVSFs).
These rules cover all vehicles governed by the Motor Vehicles Act, including electric vehicles, e-rickshaws, and e-carts, except certain agricultural and industrial machinery such as tractors and power tillers.
The Challenge of the Informal Sector
India’s vast informal vehicle recycling sector has operated for decades, often without environmental safeguards or formal oversight. While more than 90 RVSFs have been approved so far, their success depends on securing a consistent and traceable flow of ELVs.
Currently, nearly 70% of vehicle recycling still takes place informally. Without integrating this workforce through social inclusion, skills training, and environmental education, even the best-equipped RVSFs could face underutilization and financial strain.
The challenge lies not only in regulation but also in transitioning informal operators into the formal ecosystem, ensuring they benefit from and contribute to the new system.
The OEM Perspective
For Original Equipment Manufacturers (OEMs), the new EPR obligations are extensive and multifaceted. They must now:
- Establish partnerships or invest directly in collection, dismantling, and recycling infrastructure.
- Ensure digital traceability and auditability from vehicle sale to scrappage.
- Comply with component-level mandates, including QR-coded battery tracking for EVs.
- Meet recycled content targets, such as incorporating at least 8% recycled steel in new vehicles.
OEMs will also need to rethink vehicle design for recyclability and develop modular components to improve reuse and material recovery. However, since a single Authorized Treatment Facility (ATF) may serve multiple OEMs, overlapping partnerships could lead to conflicts of interest and inconsistent data reporting if not carefully managed.
Data, Audits, and Integrity
Another dimension of complexity arises from third-party service providers who handle EPR data, certificates, and compliance reporting. As an auditor approved by the Quality Council of India, I have seen how vulnerable this space can become without proper oversight.
If these third parties are not independently verified, the risk of biased or inaccurate reporting increases. To safeguard the integrity of the system, independent, government-recognized auditors must remain central to the verification process.
Execution Across States
While the national EPR framework emphasizes traceability, mass balance reporting, and third-party verification, execution across India’s diverse administrative landscape remains a challenge.
Different states are progressing at varying speeds in implementing these regulations. To ensure nationwide consistency, capacity building, standardized reporting systems, and inter-state coordination will be essential.
Emerging Bright Spots
Despite these challenges, several encouraging developments are emerging:
-
- Leading OEMs, such as Maruti Suzuki, Toyota, Tata and Mahindra have launched consumer awareness programs at dealerships to educate customers about vehicle lifecycles, buyback options, and scrappage incentives.
- The private recycling sector is partnering with informal recyclers to provide training in environmentally safe practices.
- Consulting and training organizations like Global PCCS are introducing e-learning programs, webinars, and certifications to help suppliers and recyclers understand compliance requirements and circular design strategies.
These collective efforts signal a positive shift toward inclusive and sustainable recycling ecosystems.
Toward a Circular Future
India’s EPR framework for ELVs has the potential to deliver long-term environmental and economic benefits, including:
- Reduced dependence on virgin raw materials.
- Enhanced ESG performance for manufacturers.
- Growth in the formal recycling economy with new jobs and investment opportunities.
This is not a symbolic exercise; it is a structured, evolving transformation aimed at balancing industrial growth with environmental responsibility.
India’s EPR journey is being closely observed globally, by developing and developed economies alike, as a test case in integrating circularity into one of the world’s largest automotive markets.
It represents both a challenge and an opportunity, proving that responsibility, innovation, and economic growth can move forward together.
