Mahindra Cero has inked an MoU with the government of Maharashtra to set up four more vehicle scrapping centres. The company already has a recycling facility at Pune and is looking to set up four additional facilities in the cities of Mumbai, Nagpur, Aurangabad and Nashik. Outside Maharashtra, Mahindra Cero also has a scrapping centre in Greater Noida, UP.

• Mahindra Cero already has scrapping centres in Greater Noida and Pune
• Cero to set up facilities in Mumbai, Nagpur, Aurangabad and Nashik
• Maruti Suzuki Toyotsu is another formal recycler; Tata to enter the game soon

Mahindra Cero is a joint venture between Mahindra Accelo (Mahindra Group’s steel subsidiary) and MSTC (a Government of India enterprise).  The proposed scrapping centres will have the capacity of recycling end-of-life two- and three-wheelers, and passenger and commercial vehicles.

The MoU was signed in the presence of Nitin Gadkari, minister for Road, Transport & Highways, at the Conference on Investment Opportunities in Highway, Transport and Logistics recently held in Mumbai. Maharashtra government’s Industries, Energy and Labour Department will facilitate the necessary approvals.

Speaking on the MoU, Sumit Issar, managing director of Mahindra Accelo, said, “Cero aims to create a network of world-class facilities across Maharashtra and India. Our centres will provide a platform for customers to scrap their vehicles in an environment-friendly manner and avail benefits on purchase of newer vehicles, which will be linked to the certificate of destruction provided by Cero. Through recycling of old vehicles, we aim to reduce India’s dependence on steel scrap imports and conservation of natural resources which go into the production of steel.”

Tata and Maruti also in vehicle scrappage business

The momentum for setting up vehicle scrappage facilities across India is picking up fast. Cero Recycling and the Maharashtra government’s MoU comes along with Tata Motors’ plan to set up a unit in the state, with a capacity to recycle 35,000 units per annum. 

Then there is the Maruti Suzuki and Toyota Tsusho joint venture, which recently opened its vehicle scrapping centre in Noida, UP. The firm has stated that it is willing to set up more scrapping centres across India, depending on demand.