GANDHINAGAR, India: Tata Motors has signed an MoU with the state government of Gujarat’s Ports and Transport department to recycle end-of-life passenger and commercial vehicles.
The company’s new centre in Ahmedabad will handle up to 36,000 vehicles a year and is prompted by India’s new scrappage policy announced recently by the ministry of Road Transport and Highways (MoRTH).
Under the programme, the central government says it wants to provide all stakeholders with circular economy incentives including a low import bill for scrap and crude oil, job opportunities for MSMEs, new vehicle sales for OEMs, a low-cost operation for vehicle owners, safer and cleaner vehicles for consumers and a sustainable environment.
“Appropriate scrapping of end-of-life vehicles will have sustained benefits for the ecosystem stakeholders and the environment alike,” commented Girish Wagh, Tata Motors president of the company’s commercial vehicle business unit.
“The scrappage policy by the MoRTH is a welcome move and a step in the right direction to promote safer and cleaner vehicles in India, and it is a crucial step in building a circular economy. As a responsible corporate, Tata Motors is committed to a sustainable future and looks forward to support this initiative through this association with the government of Gujarat.”
Tata Motors is to launch 10 electric (EV) commercial and passenger vehicles by 2025 according to company chairman N Chandrasekaran. “In India, EV penetration in our portfolio has doubled to 2.0 percent this year, and we expect penetration to increase exponentially in the coming years.”
Tata Sons is also evaluating the creation of an automotive software and engineering vertical within the Tata Group to develop connected and autonomous vehicles. At the same time it is investing in a charging infrastructure and partnerships for cell and battery manufacturing in India and Europe in a bid to establish a supply chain for zero-emission vehicles.
With a turnover of US$35 billion, Tata Motors manufactures cars, utility vehicles, pick-ups, trucks and buses as part of the US$113 billion Tata Group.
Story Type: News