India’s Environment Protection (End-of-Life Vehicles) Rules, 2025, effective 1 April 2025, place Extended Producer Responsibility (EPR) on vehicle producers. The rules require automakers to scrap a share of the steel equivalent of vehicles sold 15 to 20 years earlier and to acquire EPR certificates against that target. A draft amendment dated 27 March 2026 allows only steel recovered from scrapped vehicles to count, removing other steel scrap. The auto sector missed its FY26 target by about 70%.
The framework now reaches back across two decades of sales, ties compliance to a thin supply of scrapped vehicles, and carries an accounting charge that auditors have already flagged.
Key Responsibilities of the ELV Rules 2025 for OEMs
The 2025 framework sits under the Environment Protection Act and is administered by the Central Pollution Control Board (CPCB). It applies to Original Equipment Manufacturers (OEMs), importers, and assemblers.
| Vehicle type | FY26 baseline year | FY26 steel target | Escalation |
| Private (non-transport) | Vehicles sold in FY2005-06 (20 years prior) | 8 % of steel equivalent | 13 % from 2030-31, 18 % from 2035-36 |
| Commercial (transport) | Vehicles sold in FY2010-11 (15 years prior) | 8 % of steel equivalent | 13 % from 2030-31, 18 % from 2035-36 |
The core obligations that define the OEM EPR steel target India framework sit below.
- Producers must meet an annual steel-recovery target tied to the steel equivalent of vehicles sold 20 years earlier for private vehicles and 15 years earlier for commercial vehicles.
- The FY26 target was set at 8% of that steel equivalent, and it rises in later compliance cycles on the schedule shown above.
- Producers register on the CPCB portal, declare historical sales and material data, and must declare their EPR obligations by 30 April of every FY.
- EPR certificates are generated for Registered Vehicle Scrapping Facilities (RVSFs) based on the weight of steel recovered from scrapped vehicles, and producers buy these certificates to meet their obligation.
- Producers must support take-back and a published network of collection points or RVSFs so that eligible vehicles reach authorised processing.
- Environmental Compensation (EC) applies to shortfalls, with a portion refundable if the producer meets the obligation within three years.
This regulatory deep-dive builds on the foundational overview of end-of-life vehicles and the EPR framework in India rather than repeating it. It also sits alongside the broader vehicle scrappage policy in India, which sets the incentives that bring vehicles into formal channels. Together they explain why the OEM EPR steel target India obligation now drives producer planning rather than sitting at the margins.
What the 2026 ELV Proposed Amendment Draft Changed for OEMs
The ELV amendment 2026 is a draft notification issued by MoEFCC on 27 March 2026, and its single most consequential change concerns eligible steel. The original rules let producers count steel recovered from scrapped vehicles or other steel scrap materials processed at registered facilities. The draft amendment removed the other-steel-scrap provision, so only steel generated from scrapped vehicles now counts toward an EPR certificate. Most producers had planned to meet targets using a mix of vehicle scrapping and other scrap, so this change made the targets substantially harder to reach against a limited supply of vehicles.
The draft amendment also introduces the Rule 9A recycled steel obligation, which requires new vehicles to contain a minimum 10% share of recycled steel by weight.
This moves the regulation upstream into vehicle design and the steel supply chain, rather than confining it to end-of-life treatment. The exact starting percentage and timeline sit in the draft text and should be confirmed against the final notified figure before any producer fixes a sourcing plan, since draft provisions can change before notification.
The draft further brings insurers into the framework. Insurance companies are given defined responsibilities, with the Insurance Regulatory and Development Authority of India (IRDAI) named in the compliance chain, so that vehicles written off or declared a total loss are routed into registered scrapping channels rather than the informal market.
Because each of these provisions remains in draft form, OEM planning teams should track the final notification and treat the percentages, dates, and insurer duties as provisional until the rule is confirmed.
Conclusion
The ELV Rules 2025, sharpened by the ELV amendment 2026 draft, have turned vehicle recycling from a downstream concern into a board-level compliance and accounting issue. The ELV Rules 2025 and 2026 amendment for OEMs now combine the OEM EPR steel target India obligation, the Rule 9A recycled steel mandate, and a retrospective Rule 4(6) provision that has already drawn a large estimated charge.
The industry missed its FY26 scrappage target by about 70%, so the OEMs that come out ahead will be the ones that stop leaving compliance to the last minute. In practice, that means making it part of regular operations, tying up with authorised RVSFs early instead of scrambling near deadlines, and learning how automakers buy ELV EPR certificates through the CPCB portal, since that is where RVSFs list their certificates.
And because a lot of the 2026 rules are still in draft, the numbers, dates, and insurer duties mentioned here are not final yet. OEMs should check each one against the notified rule before locking in sourcing plans or setting aside money for provisions.
FAQs
What did the 27 March 2026 draft amendment change?
The draft amendment removed the provision that let producers count other steel scrap materials toward EPR certificates. Only steel recovered directly from scrapped vehicles now counts. Because most producers had planned to use a mix of vehicle scrapping and other scrap, the change made FY26 targets far harder to meet against a limited supply of end-of-life vehicles reaching authorised facilities.
What is Rule 9A in the ELV amendment?
Rule 9A is a draft provision requiring new vehicles to contain a minimum 10% share of recycled steel by weight, moving the rules upstream into vehicle design and steel sourcing. The starting percentage and timeline sit in the draft text and should be confirmed against the final notification, since draft figures can change before the rule is formally notified.
Can OEMs use non-vehicle steel scrap to meet EPR targets?
The draft for 2026 amendment removed other steel scrap materials from EPR certificate eligibility, leaving only steel recovered from scrapped vehicles. SIAM has urged the ministry to allow other automotive steel scrap during an initial phased transition until the vehicle-scrapping ecosystem matures, but that request sits with the ministry as the draft stands.
Do insurers have obligations under the 2026 amendment?
Insurance companies/insurers must register on the centralized online portal (SPCB) and ensure all End-of-Life Vehicles (ELVs) are deposited only at authorized Registered Vehicle Scrapping Facilities (RVSFs) or designated Collection Centres, while uploading and reporting vehicle disposal details on the portal to the Central Board / State Board.
How do RVSFs track steel recovery for EPR certificate generation?
Registered Vehicle Scrapping Facilities record depollution, dismantling, and steel recovery against each vehicle, and that data underpins the EPR certificates they generate. MMCM’s AutoLoop captures this through a 40-plus point dMRV framework aligned with AIS-129 scrapping standards, giving eligible RVSFs traceable, audit-ready records that support clean certificate generation for OEM buyers.
