Tata Motors to gain from scrappage push

CHENNAI: With a network of 11 registered vehicle scrapping facilities (RVSFs) across 10 states, excluding the southern region, and the capacity to dismantle more than 1.9 lakh vehicles annually, Tata Motors stands to benefit from the Centre’s push to retire ageing commercial vehicles as India intensifies efforts to curb vehicular pollution.

Last week, the Union cabinet approved a Rs 9,585-crore two-year scheme to replace ageing trucks and buses in the Delhi-NCR region, a move expected to boost vehicle scrappage activity and demand for cleaner vehicles.

For Tata Motors, which operates its scrappage facilities under the Re.Wi.Re (Recycle with Respect) initiative, the policy could provide a strong tailwind. Several of the company’s facilities are located in Delhi-NCR, Haryana, Rajasthan and Uttar Pradesh, positioning it to benefit from a potential increase in scrapping volumes as vehicle owners seek access to the formal recycling ecosystem and incentives under the programme. The company commands more than 50% market share in the medium and heavy truck segment across these four markets, and is also steadily expanding its RVSF network.
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