Castrol and Tata Motors establish a Memorandum of Understanding for recycling old oil

Tata Motors and Castrol India Limited have signed a memorandum of understanding (MoU) to launch a pilot programme aimed at developing a structured used oil circularity ecosystem in India.

The initiative seeks to establish a traceable system for the responsible collection, storage, channelisation, and recycling of used engine oil, supporting India's Extended Producer Responsibility (EPR) framework and advancing circular economy practices across the automotive lubricant value chain.

As part of the pilot, the companies will implement a structured collection network across Tata Motors' authorised sales and service centres in Karnataka. The programme is designed to address the long-standing challenge of managing used engine oil responsibly, as it is classified as hazardous waste.

Vikram Agrawal, Head of Spares and Non-Vehicle Business at Tata Motors Commercial Vehicles, said responsible used oil management is essential to building a truly circular automotive ecosystem in India. He noted that the collaboration with Castrol India aims to create a scalable model that connects responsible collection at service centres with the production of high-quality re-refined base oil, supporting Tata Motors' broader sustainability objectives.

Anoop Jindal, Vice President – Business-to-Business OEM Sales at Castrol India Limited, said building a circular economy for lubricants requires collaboration across the entire value chain. He described the initiative as Castrol India's first OEM partnership focused on responsible used oil management and added that insights gained from previous collection pilots in southern India have strengthened the company's approach to scaling circularity.

Under the agreement, Tata Motors' authorised sales and service outlets in Karnataka will serve as designated collection points for used engine oil. Castrol India will oversee the channelisation of the collected oil to registered recyclers while leveraging its lubricant expertise to ensure quality, traceability, and responsible processing.

The companies said the partnership builds on their long-standing relationship and aligns with Tata Motors' wider sustainability strategy, which includes investments in electric vehicles, compressed natural gas (CNG) platforms, and energy-efficient mobility solutions.

The detailed article is published by https://www.moneycontrol.com/ can be accessed from https://www.moneycontrol.com/news/business/markets/tata-motors-castrol-india-partner-to-launch-used-engine-oil-circularity-pilot-in-karnataka-13961051.html