Mahindra Intertrade will be teaming up with MSTC (Metal Scrap Trading Corporation) Ltd. The duo will set up the very first auto shredding facility in the Indian market. A Memorandum of Understanding (MoU) has been signed between the two for an ambitious project.
Currently, auto shredding is an unorganised sector in the Indian market. Old and dated vehicles are being torn apart by hand in an unscientific manner, which could be hazardous to the environment. Several vehicles ply on Indian roads that have passed their usable life cycle.
The scrapping of old vehicles is currently not a popular option among Indian vehicle owners. Recycling and scrapping of old and nonfunctional vehicles are the need of the hour owing to the growing vehicle population. if done correctly, scrapping and recycling ensure cleaner vehicles ply on roads.
Auto scrapping can recover steel, aluminium, plastic, and even rubber. Steel and aluminium are naturally occurring metals and its deposits are being depleted. With recycling, automobile manufacturers can acquire scrap metal easily from older vehicles and use it to develop new and better models.
Mahindra plans on reducing the import of metal from international markets. Auto scrapping could provide scrap metal easily and at a much attractive price. Scrapping also if done correctly is nonharmful to the environment.