Maruti to open car scrapping plant in Noida – 2,000 vehicles per month
Old cars, discarded cars, crashed cars, etc - all can be dismantled at this new unit.
Suzuki and Toyota JV lead to yet another development in India today. Maruti Suzuki and Toyota Tsusho (a subsidiary of Toyota) are setting up a vehicle dismantling and recycling unit in India. The announcement made today is a joint venture, Maruti Suzuki Toyotsu India Private Limited (MSTI).
The JV between Maruti Suzuki India Limited (MSIL) and Toyota Tsusho Group (Toyota Tsusho Corporation (TTC) and Toyota Tsusho India Private Limited (TTIPL)) sees each owning 50 percent equity. Headquartered in New Delhi, Maruti Suzuki Toyotsu India Private Limited (MSTI) will set up its vehicle dismantling and recycling unit in Noida, Uttar Pradesh. This will happen as early as 2020-21.
MSTI is responsible for procuring and dismantling End-of-Life Vehicles (ELVs). The end to end process includes complete solid and liquid waste management as per Indian laws, globally approved quality, and environment standards.
With govt of India working on drawing a vehicle scrapping policy, many car companies are working towards entering this business. Mahindra also has plans to enter vehicle scrapping business. Speaking about Maruti car scrapping Noida facility, it is planned as the first MSTI unit in the country. In time, the JV will add more such units across the country. The unit is planned with initial capacity to dismantle around 2,000 vehicles each month. MSTI will source vehicles from dealers and customers.
The development is in line with the way the Indian auto industry is evolving. In recent years the government has been discussing car srappage more intently, and an evolving scrapple policy has been drafted. In time, this will give direction to the sheer number of cars that need to be scrapped in the country, and the endeavour is likely to bring some cheer to customers in the for of cash for clunkers’ offers. With Maruti Suzuki (MSIL) being the largest PV volume seller in India, it’s brilliant that the company is now working on a vehicle recycling project.
Kenichi Ayukawa, Managing Director & CEO, Maruti Suzuki India Limited, said, “Maruti Suzuki strongly believes in responsible recycling of vehicles after 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. 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.”
Naoji Saito, CEO (Metal Division), Toyota Tsusho Corporation said, “Toyota Tsusho has started ELV recycling since 1970`s 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 pan-India base with Maruti Suzuki.”