PETRONAS Lubricants India and Tata Motors have signed a Memorandum of Understanding (MoU) to pilot a structured model for the responsible collection and recycling of used automotive lubricants. The initiative will be launched simultaneously across Maharashtra and Tamil Nadu, with the aim of creating a scalable system for used-oil management and supporting India’s transition towards a circular economy.
The collaboration brings together the automotive and lubricant expertise of both companies to address the environmental challenges associated with used lubricants. The initiative is also designed to support compliance with India’s evolving Extended Producer Responsibility (EPR) framework and encourage more responsible resource management across the automotive value chain.
Under the pilot programme, used lubricants will be managed through an organised and traceable system covering collection, storage, transportation and recycling. The used oil will be channelled to authorised and registered recyclers, where it can be processed into high-quality re-refined base oil for potential reintegration into lubricant manufacturing.
PETRONAS Lubricants India will focus on aggregating and moving used lubricants through authorised and specialised collection mechanisms. The company will work to ensure that the collected material reaches genuine, registered recyclers. Tata Motors, meanwhile, will leverage its extensive authorised service network to facilitate structured collection and encourage responsible disposal practices across its ecosystem.
Binu Chandy, India MD, PETRONAS Lubricants India, said that achieving greater circularity in used oil requires re-refined base oil to be brought back into finished lubricant production. He said the partnership with Tata Motors represents an important step towards developing a scalable used-oil circularity model and reducing the company’s carbon footprint.
Vikram Agrawal, Head – Spares and Non-Vehicle Business, Tata Motors Ltd, said sustainability-focused practices and partnerships are an important part of the company’s approach to advancing circular economy principles. He said the collaboration with PETRONAS Lubricants India will help establish a structured framework for the collection, recovery and recycling of used automotive lubricants.
The pilot is expected to provide insights into the feasibility of scaling up a used-oil recycling system across a wider network. By improving collection and ensuring proper channelisation of used lubricants, the initiative aims to reduce environmental risks associated with improper disposal while improving resource efficiency.
The partnership comes at a time when responsible waste management and circularity are becoming increasingly important for India’s automotive and industrial sectors. Used lubricants classified as hazardous waste require controlled handling and recycling to minimise environmental impact. A traceable collection-to-recycling system can help reduce leakage into informal disposal channels while enabling valuable materials to remain within the industrial cycle.
For Tata Motors, the initiative builds on its extensive commercial vehicle service ecosystem, while PETRONAS Lubricants India brings its expertise in lubricant technology and distribution networks. Together, the companies aim to assess how an organised collection and recycling model can create long-term environmental and operational value.
If successful, the pilot across Maharashtra and Tamil Nadu could serve as a foundation for a broader used-oil circularity framework, supporting industry-wide efforts towards sustainable manufacturing, responsible waste management and more efficient use of resources.
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