PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1463802
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1463802
Key Highlights
The India ELV and dismantling market generated USD 5,979.7 million in 2023, and it will touch USD 18,528.2 million, with a 17.6% CAGR, by 2030.
Different ministries of the Government of India and many state governments have implemented strategies for establishing and operating automobile scrapping hubs to generate a viable environment for scrapping old automobiles for transition to eco-friendly new automobiles.
The strategies also reflect the effort and significance of embracing global best practices by accepting advanced, eco-friendly technologies.
Improving dismantling methods with single window clearance is a major trend in the industry.
The unorganized sector currently dominates the market, where scrap dealers purchase ELVs through auctions or from end users. They have limited capacity for capital expenses.
The trend has been set for key automakers to fund in technologies for ELVs dismantling procedures for the extraction of sustainable materials in a sustainable method.
Procedures like deregistration of ELVs, de-pollution, shredding, and IT support, are being centralized and performed from a single facility.
A deregistration certificate of an automobile is instantly provided to the owner, which makes the automobile unfit to drive on the road and guarantees him/her safe disposal of the automobile.
Market Insights
Diesel accounted for the largest share of the industry in 2023, of approximately 70%, and it is also advancing at the fastest compound annual growth rate.
This will be because of the significant dependence on diesel as fuel by four-wheeled commercial and passenger automobiles as well as heavy-duty automobiles.
In 2023, the unorganized sector accounted for approximately 75% share. This can be mainly ascribed to the lack of regulatory guidelines, which have assisted unorganized players' flourish.
The organized sector is likely to advance at a higher compound annual growth rate, of 17.8%, during this decade. This will be primarily because of the increasing consciousness regarding environmental problems.
The ferrous metal category accounted for the leading share of the industry in 2023, of approximately 25%. This can be mainly because of the extensive use of steel in automobiles.
The two-wheelers category was the largest contributor to the industry in 2023, with approximately 45% revenue share. This can be ascribed to the fact that India has a huge count of two-wheelers on its roads.
The four-wheelers category will propel at the highest compound annual growth rate, of 17.9%, in the years to come.
This is credited to the rising ownership patterns of four-wheelers, both in commercial and passenger domains, because of auspicious economic development and increasing disposable salary.
Maharashtra was the largest contributor to the industry in 2023, with approximately 30% share.
Maharashtra has the highest gross state domestic product (GSDP) in the nation; therefore, residents have greater purchasing power compared to other states.
The NCT of Delhi will propel at the fastest compound annual growth rate, of 18.4%, in the years to come. This can be mainly ascribed to the more stringent regulations for automobiles because of high air pollution.
The India ELV and dismantling industry is consolidated in nature. Many major players are large funding in advanced technologies to enhance the effectiveness of the dismantling procedures, which assist them to enhance their competitiveness.