With the growing pressure from governments and authorities, automakers have been mulling innovative ideas to explore new ways of sustainable methods while manufacturing vehicles. As part of that strategy, auto companies like Honda, Toyota and Nissan have decided to use recycled plastic in their new vehicles. Nikkei has reported that these two Japanese auto majors have decided to build a supply chain to source the used plastic from old vehicles, which will be used in the new models. The move comes to comply with the expected new European regulations, the report stated.

Honda is reportedly aiming to partner with chemical manufacturers and recycling companies to create a supply chain for recycled plastic by around 2040. The report also stated that plans call for decreasing the types of plastic used in new cars by around 60 per cent to six or seven per cent, facilitating the sorting process at recycling stations. Incidentally, Honda's first mass-produced electric vehicle, the Honda e, used around 25 different types of plastic.

Nissan and its alliance partner Renault are also planning to launch an initiative to recycle plastic from scrapped electric vehicles, which will be used in new models that will be assembled in Europe. Nissan is reportedly considering to invest in a Renault recycling unit, with such details as the size of the investment to be ironed out later.

Another Japanese automaker Toyota has set a target of having recycled plastic account for 30 per cent or more of the total plastic used in its new vehicles made in Japan and Europe, by weight, by 2030. Toyota's Land Cruiser 250 series of SUVs feature seats with fabric made from plastic bottles collected in-house by that automaker. For the Toyota C-HR small SUV sold in Europe, the OEM roughly doubled the use of recycled plastic compared with its predecessor.

Amid the expected tightening of regulations in Europe, luxury car manufacturers such as Mercedes-Benz and BMW are also moving to use more recycled plastic in their vehicles. In India as well, the Vehicle Scrappage Policy aims to facilitate the automakers to use the recycled plastic and other parts that can be recycled and used in new vehicles.

EU proposed stringent norms for plastic use in cars

The European Commission (EC) proposed a new rule in 2023, under which at least 25 per cent of a new vehicle's total plastic parts would have to be recycled plastic. This regulation would be enforced fully as early as 2031. Non compliance of this rule will see barring the new vehicles from sale in the European Union (EU) market.

Plastic is an essential material in automobile production. The material is heavily used in parts like bumpers, interior components such as dashboard and other parts as well. While the new plastic used in the vehicles come reducing the financial burden of the automakers, it increases the emission of pollutants into the environment. In a bid to reduce that, the governments and authorities across the world have been pushing the auto companies hard to use recycled plastic, which would reduce the burden on environment. However, this process would increase the manufacturing cost for the automakers.

Higher costs have been an obstacle to widespread adoption of recycled plastic auto parts. In general, recycled plastic is said to be between 50 per cent more expensive to triple the cost of conventional plastic. Hence, a sharp increase in the use of recycled plastic could squeeze earnings at automakers.

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