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ZERO WASTE AUTOMAKING

OEM Update Magazine

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July 2025

The automotive industry is accelerating towards cleaner mobility, with manufacturers facing a new imperative: eliminating waste across the entire value chain. From raw material sourcing to component production and end-of-life recycling, zero-waste manufacturing is becoming a crucial benchmark for sustainable progress. Drawing on insights from sustainability experts and industry leaders, OEM Update's July cover story explores how automotive OEMs and Tier-1 suppliers can adopt circular economy principles and optimise production processes to minimise material waste.

ZERO WASTE AUTOMAKING

Electric mobility conversations often focus on “electric vehicle emissions” and “charging challenges,” but a critical issue in the auto industry is waste.

We should view waste as a starting point for innovation rather than an endpoint. Achieving zero waste requires a complete redesign of systems to ensure that all materials, from plastics to metals, are reused, recycled, or composted, thereby minimising landfill disposal.

In India, the fourth-largest auto market, sustainability is essential for long-term competitiveness. Although the government's scrappage policy is a positive move, over 90% remains unorganised. High costs of recycled materials and inconsistent regulations present additional challenges.

Success stories, such as Tata Motors’ and Mahindra’s zero-waste facilities, are limited by design constraints that hinder easy dismantling and remanufacturing.

Supportive initiatives, such as the Production-Linked Incentive scheme, can help cultivate a circular auto economy, targeting a $15-16 billion market by 2030 and creating green jobs. Vinkesh Gulati from the Automotive Skills Development Council emphasises the need for redesign and collaboration to achieve zero waste.

While India is advancing from awareness to execution, evolving older systems will take time. All automotive manufacturers are now focused on end-to-end strategies for net-zero emissions. The industry accounts for about 7.1% of India's GDP and has over 30,000 dealerships nationwide. Educating dealers on sustainability varies by region, with urban areas generally more aware.

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