Maruti Suzuki and Toyota Tsusho have announced a 50-50 joint venture, Maruti Suzuki Toyotsu India (MSTI), for recycling vehicles and dismantling end-of-life vehicles (ELVs). For this, MSTI will establish a unit in Noida in 2020-21; it will add more units later. The Indian government announced proceedings for a vehicle scrapping policy, which has not yet officially announced.
Enforcing a proper scrapping policy would help replace old vehicles, usually 15 years old, with new ones. This would drastically reduce air pollution in urban areas. It could also provide a much-needed impetus to the floundering automobile industry: in 2008, countries such as America, Germany, Canada, and China had boosted the automotive sector by forming such policies.
“Maruti Suzuki strongly believes in responsible recycling of vehicles after the end of its useful life. Through this Joint Venture, MSTI, we aim to promote recycling and support in resource optimization and conservation while using environment-friendly systems and processes,”
Kenichi Ayuwaka
Managing Director &CEO of Maruti Suzuki India Limited
The joint venture will initially scrap 2,000 vehicles a month, sourcing ELVs from dealers as well as household owners. The vehicles will be scrapped using scientific and environment-friendly methods. Experts at MSTI will make use of technology matching global standards. The process will also include complete solid and liquid waste management as per Indian laws.
Suzuki and Toyota had already buttressed their partnership by agreeing to share production facilities, vehicles and technologies for selling vehicles in India as well as other markets. Toyota Tsusho Corporation has been recycling ELVs in Japan since the 1970s.
