Toronto, Ontario — Two OEMs appear to be muscling into the auto recycling industry on a massive scale. Suzuki and Toyota have announced a collaborative venture to open vehicle dismantling facilities in India.
The Japanese OEMs expect to open a facility based in Noida, in the northern province of Uttar Pradesh, in 2020. It is reportedly being designed to dismantle 24,000 vehicles each month. While the total number of other facilities planned is unknown, the companies plan to construct several before the end of 2021.
“Scrapping of older vehicles in a scientific and environment-friendly manner will help reduce pollution and also make roads safer,” said Suzuki’s Indian subsidiary director Kenichi Ayukawa. “A team of experts at [Toyota’s Indian subsidiary] will dismantle the vehicles using international technology and global standards.”
Last month, more than 300,000 Toyotas and Suzukis were purchased by Indian drivers, meaning that the pace of vehicle recycling by the OEMs is unlikely to take a big bite out of the domestic market.
While the entry into the recycling sector in South Asia might appear to be an unlikely source of concern for Canadian auto recyclers, OEMs often roll out successful strategies on a global scale after testing on a national stage.
The Canadian collision industry is currently concerned about an industry-altering OEM pilot program–this one in the United States. Ford is piloting a U.S. program aimed at steering drivers to its own network of collision repair centres.
At this year’s SEMA Show in Las Vegas, a representative declined to answer questions on whether the pilot program would be coming north.
