Tata Motors, Castrol India pilot used engine oil recycling network in Karnataka

INDIA – Tata Motors and Castrol India have signed an MoU to launch a used engine oil recycling pilot in Karnataka, creating a traceable collection network through Tata’s service centres to channel used oil to registered recyclers for re-refining.

The partnership directly addresses India’s significant used-oil recycling gap, where approximately 1.3 million tonnes of used lubricating oil is generated annually but only about 0.2 million tonnes is recovered through formal recycling channels. 

The initiative responds to India’s Extended Producer Responsibility framework for used oil, which mandates that producers recycle increasing percentages, from 5 per cent in FY25 to 50 per cent by FY31. 

Under the Karnataka pilot, Tata Motors’ authorised service outlets will serve as structured collection points, while Castrol India will anchor the channelisation of collected oil to registered recyclers, leveraging its lubricant expertise and insights from previous collection pilots in southern India.

How Formal Collection Infrastructure Addresses India’s Used Oil Recycling Gap

The pilot moves beyond fragmented, informal recycling practices that dominate India’s used oil sector, where under-reporting, cash-based transactions and diversion into unauthorised channels are common. 

By creating a structured, traceable system, the partnership aims to formalise the collection and recycling of hazardous used oil, ensuring it is processed by registered recyclers rather than ending up in improper disposal or unauthorised reuse. 

Vikram Agrawal, Head of Spares at Tata Motors Commercial Vehicles, stated that the volume of used engine oil generated annually makes responsible collection and recycling a matter of significant environmental consequence, and this partnership creates a scalable model for high-quality re-refined output.

What the Pilot Means for India’s Circular Economy and Lubricant Industry

Anoop Jindal, Vice President at Castrol India, described the association as Castrol India’s first OEM collaboration focused on building a structured ecosystem for responsible used-oil management in India. 

He noted that insights from previous pilots have deepened the understanding of the opportunities and challenges in scaling circularity. 

The collaboration builds on the existing relationship between the two companies and supports Tata Motors’ broader sustainability agenda, encompassing electric vehicles, CNG platforms and energy-efficient mobility solutions. 

It also aligns with Castrol India’s strategy to embed recycled materials in high-performance lubricant products. 

The pilot will evaluate the operational viability of a structured collection and recycling model, with the potential for wider adoption across India if successful. 

The companies said the initiative could help create a more organised, traceable and scalable model for used-oil circularity, reducing reliance on virgin crude-derived base oils and supporting India’s transition to a circular economy.

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