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Maruti Suzuki and Toyota form JV to dismantle and recycle scrapped vehicles in India

Team OD  | Published: November 06, 2019, 03:10 PM IST

Maruti Suzuki and Toyota Tsusho Group announced a joint venture, Maruti Suzuki Toyotsu India (MSTI), towards setting up vehicle dismantling and recycling units in India. Maruti Suzuki India Limited (MSIL) and Toyota Tsusho India Private Limited (TTIPL) have come together to form the JV, each with 50 per cent equity in the new entity.

The entity, MSTI, will procure and dismantle End-of-Life-Vehicles (ELVs) at its plant, to be set up in Noida (UP) by 2020-21. The JV will add more such units across India, and have an initial capacity to dismantle around 2,000 vehicles per month. MSTI will source vehicles from dealers as well as directly from customers. This JV is one of the first steps towards a scientific approach to scrapping ELVs in India, an issue looming large on our immediate horizon. With the NGT's rules banning vehicles older than 10- and 15-years of age (for diesel and petrol respectively), it estimates over 21 million such ELVs would need to be taken off the road by 2025. MSTI will follow international best practices of vehicle dismantling and scrap disposal, and customers will be able to scrap their vehicles and attain necessary documentation for deregistration at one venue. For those wondering, once the vehicle is procured from dealerships/customers, the vehicle will undergo a de-pollution routine of oils, airbags, batteries and more, before dismantling, segregation of scrap and shipment to steel processing centres, before the vehicle's de-registration is undertaken.

Announcing the initiative, Mr 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 optimisation 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." At the occasion Mr. Naoji Saito, CEO (Metal Division), Toyota Tsusho Corporation said, "Toyota Tsusho has started ELV recycling since 1970s 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."

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