The Ministry of Environment, Forest and Climate Change issued a notification on January 6th 2025 taking a giant leap in the direction of environmental sustainability with the introduction of the Environment Protection (End-of-Life Vehicles) Rules, 2025.

The primary aim of these new regulations is to promote the recycling and reuse of vehicle components and materials. This will help to reduce the demand for new raw materials and minimize waste and pollution.

These provisions will come into effect on April 1, 2025.

Key Highlights of the New Rules:

A. Applicability of Rules – The rules are applicable to selected type of entities and vehicles enumerated below.

1. Entities Covered: The rules impact a range of stakeholders in the vehicle lifecycle in automotive industry, including:

a.  Producers- means an entity who is engaged in:

• manufacture or assembly and sale of vehicles under its own brand
• sale of vehicles under its own brand produced by other manufacturers or suppliers
• import of vehicles

b.  Registered owners of Vehicles

c.  Bulk Consumers f Vehicles – means consumer having ownership of more than one hundred vehicles, and includes a State transport undertakings

d. Collection Centres

e.  Registered Vehicle Scrapping Facilities (RVSFs)

f.  Automated Testing Stations

g.  Entities involved in testing, handling, processing, and scrapping End-of-Life (ELV) vehicles.

2. Entities Exempted:These rules will NOT apply to:

a.  Waste Batteries (covered under Battery Waste Management Rules, 2022)

b.  Plastic Packaging (covered under Plastic Waste Management Rules, 2016)

c.  Waste Tyres and Used Oil (covered under Hazardous and Other Wastes Management Rules, 2016)

d.  E-waste (covered under E-Waste Management Rules, 2022)

3.  Vehicles Covered: The rules apply to all types of vehicles defined in clause (28) of section 2 of the Motor Vehicles Act, 1988, including

a.  Electric Vehicles (EVs)

b.  Battery-Operated Vehicles

c.  E-Rickshaws

d.  E-Carts

4.  Vehicles Exempted: These rules will NOT apply to:

a.  Agricultural tractors

b.  Agricultural trailers

c.  Combine harvesters

d.  Power tillers

B. Responsibilities of Various Stakeholders

 1. Producer Responsibilities: Producers, or vehicle manufacturers, are now required to fulfil Extended Producer Responsibility (EPR) obligations.

a.  To register with the Central Board and maintain annual returns regarding the vehicles sold and scrapped.

b.  To meet scrapping targets and fulfil Extended Producer Responsibility (EPR) for vehicles introduced to the domestic market as per schedule given in rules.

c.  To declare EPR obligations for the current year by 30th April of the same year to the Central Board

d.  To ensure that End-of-Life vehicles are deposited at authorized scrapping facilities or collection centres

e.  To offer buy-back or deposit refund schemes and organise awareness campaigns & Workshops to encourage vehicle returns for scrapping

2. Registered Owners and Bulk Consumers: Registered owners and bulk consumers have important responsibilities:

a.  Every registered owner and bulk consumer must ensure that the vehicle is tested in accordance with the section 56 of the Motor Vehicles Act, 1988 and rule 52 of the Central Motor Vehicles Rules, 1989

b.  Deposit End-of-Life vehicles at a registered collection centre or scrapping facility within 180 days once a vehicle reaches its end-of-life stage.

c.  Bulk consumers must register with the State Board and file annual returns about the vehicles they own or have scrapped.

3. Collection Centres and Scrapping Facilities:

a.  Collection centres play a crucial role by collecting End-of-Life vehicles and sending them to Registered Vehicle Scrapping Facilities.

b.  Registered Vehicle Scrapping Facilities (RVSFs) must dismantle vehicles in an environmentally sound manner. Their duties include depollution, material segregation, and sending recyclables to authorized recyclers.

4. Registered Vehicle Scrapping Facility: is a facility that dismantles and scraps vehicles in an environmentally friendly way

a.  To store different categories of waste segregated in bins separately

b.  To recycle materials and refurbishing components

c.  To carry out treatment, dismantling, and segregation of vehicle parts

d.  Recycled materials must be sent to registered recyclers, and non-recyclable materials should be disposed of at Common Hazard Waste Treatment, Storage, and Disposal Facilities (TSDF).

e.  To issue EPR certificates based on the quantity of steel processed from each End-of-Life vehicle. These certificates are valid for 5 years.

f.  To file Quarterly Returns

5. Automated Testing Stations: Automated testing stations will now be required to upload data on vehicles declared unfit for use, directly feeding into the centralized online portal established by the Central Board.

C. Environmental Compensation:

a.  The rules introduce a mechanism for environmental compensation in case producers, RVSFs, or bulk consumers fail to comply with the regulations. This penalty will be used to restore environmental damage caused by improper disposal and recycling practices which may be equal to such loss, damage or injury in accordance with the guidelines issued by the Central Board.

b.  The rules enumerate that the purpose of levying compensation is to ensure compliance instead of penalizing defaulters. Hence there is also a provision introduced to refund the compensation in case the stakeholder complies with the obligations within specified time limits.

D. Centralized Online Portal: A new centralized online portal will be established by CPCB a single point data repository to facilitate registration, filing returns, and the exchange of EPR certificates. Producers, bulk consumers, and scrapping facilities will have to use this platform to ensure compliance with the new rules.

The Environment Protection (End-of-Life Vehicles) Rules, 2025, mark a significant step toward sustainable waste management and aim to tackle the growing issue of waste from End-of-Life vehicles in the automotive sector in India. By focusing on the entire lifecycle of vehicles and involving multiple stakeholders, the rules aim to reduce environmental harm and promote a circular economy.

Disclaimer:  This is an effort by Lexcomply.com, to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts.