At the 4th International Conference on Sustainable Mobility, hosted by the Society of Indian Automobile Manufacturers (SIAM) from February 16th to February 19th as part of Sustainability Mobility Week 2026 held in New Delhi, regulatory alignment emerged as the central force driving India’s automotive circular economy transition.
The conference brought together senior government officials, industry leaders, and major OEMs including Tata Motors, Maruti Suzuki India Limited, Mahindra & Mahindra, Hyundai Motor India, and Ashok Leyland and representatives from foreign OEMs such as Toyota, BMW, and others. They collectively emphasized that circularity in the automotive sector is no longer a voluntary sustainability initiative.
Instead, it is increasingly embedded within enforceable regulatory frameworks governing:
- Vehicle lifecycle management
- End-of-Life Vehicle (ELV) systems
- Material traceability
- Extended Producer Responsibility (EPR)
- Recycling and recovery compliance
The conference made it clear that circularity in the automotive sector is no longer voluntary sustainability positioning.
Vehicle Scrappage Policy Gains Regulatory Momentum
India’s Vehicle Scrappage Policy continues to evolve as a central compliance mechanism supporting circularity objectives.
Discussions focused on:
- Operationalisation of Registered Vehicle Scrappage Facilities (RVSFs)
- Enforcement of vehicle fitness testing norms
- Strengthening traceability of End-of-Life Vehicles (ELVs)
- Addressing documentation gaps such as unpaid road tax, challans and insurance lapses
Regulators emphasized that improving ELV channelization into formal scrappage systems is essential for emissions reduction, material recovery, and recycling compliance.
Stronger EPR Framework for Automotive Sector
Extended Producer Responsibility (EPR) for vehicles and components was a major regulatory theme.
Policy priorities include:
- OEM accountability across the full vehicle lifecycle
- Integration of recyclability and material recovery targets
- Alignment between scrappage systems and producer obligations
- Harmonisation of automotive EPR with broader environmental and waste regulations
The regulatory direction signals a transition from disposal-based management to lifecycle-based compliance.
Digital Traceability Becomes Enforcement Backbone
Digital monitoring systems are emerging as a cornerstone of enforcement.
Authorities highlighted the need for:
- Technology-enabled ELV tracking
- Data-driven compliance verification
- Formalisation of recycling supply chains
- Transparent and auditable reporting systems
Digital infrastructure is now considered foundational to regulatory governance in circular automotive ecosystems.
APA Engineering Emphasizes Material Compliance & IMDS Governance
Complementing the circularity of discussions, regulatory compliance at the material level was addressed at the 1st International Conference on Automotive Material Compliance & Sustainability (AMCS).
Speaking at Technical Session III, Sriram Vinnakota, Head of Compliance – Chemical & Product Regulatory Compliance, APA Engineering Inc., stated:
“From a consulting perspective, we see two scenarios. Some companies engage early and build compliance systems from the beginning, while others approach after struggling to achieve targets. In such cases, supplier follow-ups, training, and data validation become necessary. When there is a mismatch between supplier claims and OEM expectations, testing and verification become the only way forward. Best practice is to cross-check submissions with drawings, material specifications, and production data. Tier-1 suppliers may have resources, but Tier-2 and Tier-3 often require external support. Building capability, standardising processes and strengthening collaboration across the supply chain are essential to ensure reliable IMDS submissions and regulatory compliance.”
He further added:
“Compliance success depends on when you start — and how you sustain it.”
The session reinforced key regulatory lessons:
- Early integration of compliance into product development reduces long-term risk
- Supplier declarations must be validated against engineering drawings and specifications
- Testing and verification become necessary when data gaps arise
- Tier-2 and Tier-3 supplier capability building is critical
- Standardised processes ensure long-term regulatory sustainability
Regulatory Outlook for Automotive Industry
Across both SIAM and AMCS platforms, one message stood out: India’s automotive circularity transition is being shaped by regulatory enforcement, digital traceability, EPR accountability, and robust material compliance systems.
Companies that embed compliance early — integrating lifecycle governance, supplier validation, IMDS accuracy, and structured internal controls — will be better positioned to meet tightening regulatory expectations.
Circularity is no longer an environmental aspiration.
It is a regulatory mandate supported by systems, verification, and accountability.
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