Saturday, July 26, 2025

Mahindra Introduced End-To-End Vehicle Scrapping Solution In India

The Indian government has recently proposed the vehicle scrappage policy. Though it is yet to be implemented, Mahindra has already come up with a unique end-to-end vehicle scrappage solution under the brand name of CERO. For this, Mahindra has signed an MOU with Mahindra MSTC Recycling Private Limited (MMRPL). 

Under this initiative, Mahindra will provide the customers the convenience of scrapping/exchanging their old car for a new Mahindra SUV at its dealership itself. This will eliminate the need to visit the local RTO or a vehicle scrapping agency. 

As a part of this process, Mahindra dealerships will evaluate the vehicle and will provide a vehicle value quotation to the customer. On customer's agreement, the brand will provide end-to-end services including vehicle pickup, transportation, and environment-friendly dismantling at CERO Scrap yards. After this, CERO will also issue a certificate of deposit/destruction, which will allow customers to claim eligible benefits under the upcoming Scrappage Policy. Considering the ongoing COVID-19 situations, Mahindra is also offering a doorstep service for car evaluation. 

Commenting on the partnership, Veejay Ram Nakra, CEO – automotive division, Mahindra and Mahindra, said –

Our agreement with MMRPL is a step towards delivering customer delight through a convenient, one-stop solution for customers who wish to scrap their old vehicle. While the scrappage policy will take effect in some time, we are ready to help the customers who intend to discard their vehicles.

What benefits will buyers get under the scrappage policy?

Well, things are yet to be finalised. But as per the proposed policy, the scrapping centres will give a scrap value for old vehicles by nearly 4-6% of the ex-showroom price of a new vehicle. Further, govt has also advised OEMs/vehicle manufacturers to provide a 5% discount on the purchase of a new vehicle against the scrapping certificate. In addition to this, the Transport Ministry has also proposed some relief in GST for buying new vehicles by scrapping old vehicles.

The ministry has also recommended the state governments to offer up to 25% rebate on the road tax for personal vehicles and up to 15% for commercial vehicles.

About Mahindra MSTC Recycling Private Limited (MMRPL)

Mahindra MSTC Recycling Private Limited (MMRPL), is a joint venture between Mahindra Intertrade Ltd. and MSTC Ltd., a Govt of India Enterprise, and has set up India’s First Automotive & Steel Recycling facility under the brand name CERO at Greater Noida in January 2018. Currently, CERO has dismantling centers at Greater Noida, Pune, and Chennai and in addition collection centers at major cities such as Mumbai, Bangalore, Hyderabad, Ahmedabad, Jaipur, and Chandigarh. Further, CERO has plans to have a presence in 25 cities within the next 8-10 months. 

These facilities embrace a Zero pollution objective and have the capacity to recycle old Trucks, Buses, Cars, and Two/Three Wheelers and Consumer durables. The recovered raw materials from the vehicles will be supplied to companies that can make use of them, provided they meet the stringent quality and sustainability requirements. Automotive steel is one of the best steels available as it can be easily melted and remade thus helping the case of the circular economy.

Vehicle Scrappage Policy and GPS Based Toll in India | #AGBG

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