Friday, 10 March 2017
Automobile Scrappage in India: A Boon for Steel Industry
Indian recycling sector is slowly gaining momentum, as we are now looking forward to ways to recycle and reuse the materials which we use in our daily lives. Many such policies, which have been successful in the Developed Nations, are now entering the Indian Market scenario, and the Indian Government too has been drafting such policies to make efficient usage of resources.
Vehicle scrappage or recycling is one such concept that has been the focus of the Indian Government in recent times. Many nations have successfully adopted and executed such policies, helping them to reduce scrap wastage and preserve their nation’s resources. But owing to the highly unorganized nature of the Indian recycling sector, there is no policy which has been undertaken. But considering the pace at which our nation is growing and utilising goods, it is probably one of the best techniques to reuse and recycle metals.
The Society of Indian Automobile Manufacturers (SIAM) has suggested that every vehicle of over 15 years and pollution contributing vehicles which amount in significant amount of pollution should be scrapped off.
A voluntary participation in the program can offer the customer attractive incentives on next vehicle purchase and ensure there is positive participation in the program.
The following benefits could be identified with, if the scheme is being undertaken.
Increase in Steel demand – To supply the new vehicle demand in the market, tremendous amount of steel would be required by automobile manufacturing companies to meet the new demand.
Environment Conservation – Vehicles are a major contributor to air pollution and older vehicles emit harmful chemicals as well. The pollution levels in metro cities like Delhi, Mumbai & Bangalore have already reached an alarming level. Taking corrective measures by taking old vehicles off the road will be a huge relief for the environment.
New Car Market – With attractive incentive schemes for car owners, many would scrap their old vehicles and go for new ones. This would create a demand for new vehicles and help boost the automobile industry.
Business Opportunity - Vehicle scrapping units and facilities is a potential market for India and foreign investors. Currently it lacks steady organisation and needs recalibration. It’s a vital & potential field that needs to be explored and capitalised upon.
If India undertakes a metal or vehicle recycling/ scrappage policy it will only benefit from it in the coming decades, by taking steps to conserve the environment and create new potential in the automobile industry.