Tata Motors, PETRONAS Lubricants India Partner For Oil Recycling Pilot In 2 States

Tata Motors and PETRONAS Lubricants India on Wednesday inked a Memorandum of Understanding (MoU) to test a structured system for collecting and recycling used automotive lubricants, with the pilot programme set to run simultaneously in the states of Maharashtra and Tamil Nadu. The programme will cover the collection, storage, transportation and recycling of used lubricants, with a focus on creating a traceable route from the point of collection to registered recyclers.

The scheme is also intended to help the firms align their operations with India’s evolving Extended Producer Responsibility (EPR) framework for used oil management.

Under the proposed system, used lubricants classified as hazardous waste will be collected through authorised channels before being sent for recycling into re-refined base oil. PETRONAS Lubricants India will be responsible for aggregating the material and managing its movement through authorised collection mechanisms.

Tata Motors, on the other hand, will use its authorised service network to support collection and responsible disposal.

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“At Tata Motors, practices and partnerships promoting sustainability are integral to advancing circular economy principles and creating meaningful environmental impact across the automotive value chain. Through our collaboration with PETRONAS Lubricants India, we are taking a significant step towards establishing a structured framework for the collection, recovery, and recycling of used automotive lubricants. This pilot initiative aligns closely with our commitment to responsible resource stewardship and supports India's broader sustainability ambitions," Vikram Agrawal, Head - Spares and Non-Vehicle Business, Tata Motors Ltd., said in a statement.

The automaker will also evaluate the potential to extend the model beyond the pilot locations.

"Achieving true circularity in used oil begins when  base oil is reintegrated into finished lubricants. Our collaboration with Tata Motors marks an important step toward building a scalable model for used oil circularity and reflects the strength of our channel network as we work to significantly reduce our carbon footprint across operations," said Binu Chandy, India MD, PETRONAS Lubricants India.

The pilot programme will give both companies a chance to assess how effectively the model works on the ground and whether it can eventually be expanded across a wider section of the automotive value chain. That assessment will be important as the industry faces increasing pressure to formalise waste streams and improve resource recovery.

PETRONAS Lubricants India has highlighted the role of re-refined base oil in its approach to used-oil management. Reintroducing recovered base oil into the production of finished lubricants can help close the material loop, reducing the need to treat used lubricant merely as waste.

An important element of the proposed model is the channelisation of collected used oil to genuine, registered recyclers. Once processed, the material can be converted into re-refined base oil, creating a route for recovery rather than conventional disposal.

The companies said the pilot is also aimed at improving resource efficiency and reducing environmental risks linked to the handling and disposal of used lubricants.