$ 5 bn opportunity in auto parts via material circularity

18 Sep 2023 CW Team

The report, titled 'Mobility 360 degrees – Sustainability for Competitiveness,' outlined that embracing material circularity could lead to several benefits for companies. Specifically, it could boost the top line by 10-20%, reduce costs by 5-10%, decrease virgin material usage by 20-40%, and cut carbon emissions by 50-70%.

The global automotive industry is increasingly adopting the concept of a circular economy, which aims to keep materials, products, and services in circulation for as long as possible. A report jointly published by the World Economic Forum and Accenture suggests that a car produced under the circular economy model could potentially reduce the automotive industry's carbon emissions throughout its lifecycle by up to 75% by 2030.

The McKinsey report stated, "The market opportunity for automotive component circularity by FY30 is estimated to be in the range of $ 3.8 to 5 billion, encompassing three key themes – material recirculation, circular product design and repair, care, and refurbishment services." It also highlighted the challenges in promoting material circularity in India, including the presence of disorganised recyclers, high costs, low recovery rates for e-waste and reusable parts, as well as the demand for recycled products and the complexity of recycling certain components.

However, the report suggested that these barriers could potentially be overcome over time with the help of supportive policies and regulatory measures, such as the Vehicle Scrappage Policy of 2022. Additionally, improvements in recycling economics and advancements in recycling technologies could contribute to the growth of material circularity in the Indian automobile industry.

Also read:
Indian domestic air passenger traffic increased by 23%
Haryana Plans Airstrip Expansion for Better Regional Connectivity

According to a McKinsey report released during the 63rd annual session of the Automotive Component Manufacturers Association of India (ACMA), India's automobile parts industry may see a market opportunity ranging from $ 3.8 to $ 5 billion by the Financial Year 2029-30 (FY30) through the practice of component circularity, which involves the reuse or recycling of materials. The report, titled 'Mobility 360 degrees – Sustainability for Competitiveness,' outlined that embracing material circularity could lead to several benefits for companies. Specifically, it could boost the top line by 10-20%, reduce costs by 5-10%, decrease virgin material usage by 20-40%, and cut carbon emissions by 50-70%. The global automotive industry is increasingly adopting the concept of a circular economy, which aims to keep materials, products, and services in circulation for as long as possible. A report jointly published by the World Economic Forum and Accenture suggests that a car produced under the circular economy model could potentially reduce the automotive industry's carbon emissions throughout its lifecycle by up to 75% by 2030. The McKinsey report stated, The market opportunity for automotive component circularity by FY30 is estimated to be in the range of $ 3.8 to 5 billion, encompassing three key themes – material recirculation, circular product design and repair, care, and refurbishment services. It also highlighted the challenges in promoting material circularity in India, including the presence of disorganised recyclers, high costs, low recovery rates for e-waste and reusable parts, as well as the demand for recycled products and the complexity of recycling certain components. However, the report suggested that these barriers could potentially be overcome over time with the help of supportive policies and regulatory measures, such as the Vehicle Scrappage Policy of 2022. Additionally, improvements in recycling economics and advancements in recycling technologies could contribute to the growth of material circularity in the Indian automobile industry. Also read:Indian domestic air passenger traffic increased by 23% Haryana Plans Airstrip Expansion for Better Regional Connectivity

Infrastructure Urban

07 Nov 2025

Welspun Enterprises Wins 910 MLD Panjrapur WTP Contract

Welspun Enterprises (WEL), the infrastructure and energy arm of Welspun World, has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to design, build and operate a 910 million litres per day (MLD) Water Treatment Plant (WTP) at Panjrapur, Maharashtra.Valued at approximately Rs 31.45 billion, the project encompasses end-to-end civil, mechanical, electrical and instrumentation works, including the construction of a treated water sump and pumping station. Of the total value, nearly Rs 11.56 billion is allocated to Operations & Maintenance (O&M), with an additional..

Infrastructure Energy

07 Nov 2025

Mitsubishi Power Wins Boiler Upgrade Contract for O Mon 1 Plant

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, (MHI), has been awarded a contract to support the oil-to-natural-gas fuel conversion at the O Mon 1 Thermal Power Plant in Can Tho, southern Vietnam. As the OEM of the plant’s existing boiler, Mitsubishi Power will supply key equipment—including new gas burners—and implement a selective catalytic reduction (SCR) system to reduce NOx emissions and help the plant meet stricter environmental standards.The O Mon 1 facility includes two 330 MW units that commenced operations in 2009 and 2015, with all major equipment or..

Equipment

07 Nov 2025

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..