HPCL and Tata Motors Partner to Launch India’s First Scalable Circular Economy Model for Recycling Used Lubricants

MUMBAI : In a major stride toward industrial sustainability, Hindustan Petroleum Corporation Limited (HPCL), a premier Maharatna Oil Marketing Company, and Tata Motors, India’s largest commercial vehicle manufacturer, have signed a landmark Memorandum of Understanding (MoU). The partnership aims to pilot a structured, scalable, and traceable model for the responsible collection and recycling of used automotive lubricants.

This first-of-its-kind collaboration combines the strengths of two Indian industry leaders to tackle a critical environmental challenge. By establishing an organized system to convert hazardous used oil into high-quality re-refined base oil, the initiative directly supports India’s evolving Extended Producer Responsibility (EPR) framework and advances national circular economy goals.

A Closed-Loop System for Hazardous Waste:
Used automotive lubricants are classified as hazardous waste and pose severe long-term environmental risks if disposed of improperly. This partnership addresses the issue head-on by bridging the gap between waste generation and high-tech recycling.

Under the agreement, the responsibilities will be divided to maximize efficiency:

Tata Motors will leverage its massive domestic footprint including its authorized service network of over 4,500 touchpoints to ensure the structured collection and responsible disposal of used oil right from the service bays.

HPCL will anchor the logistics, managing the secure aggregation and transportation of the collected lubricants through authorized mechanisms to ensure they reach registered, state-of-the-art recyclers.

“Achieving true circularity in used oil begins with reintegrating re-refined base oil into finished lubricants,” said Mr. Ch Srinivas, Executive Director – Lubes, HPCL. “Our collaboration with Tata Motors is a significant step towards building a scalable model for used oil circularity and reducing the carbon footprint across operations.”

Driving Industry-Wide Change:
The pilot project will initially roll out across select states. A joint committee featuring representatives from both HPCL and Tata Motors will closely monitor the program’s progress, optimize logistics, and evaluate its readiness for a nationwide scale-up.

For Tata Motors, this eco-friendly initiative integrates into its comprehensive customer-care ecosystem, which includes Sampoorna Seva 2.0 (end-to-end vehicle lifecycle solutions) and Fleet Edge (its advanced connected vehicle platform).

Mr. Vikram Agrawal, Head – Parts and Services at Tata Motors Ltd., emphasized the scale of the challenge: “Used automotive lubricant, if not handled responsibly, can cause long‑term environmental harm. Addressing this challenge calls for credible partners, clear processes and the ability to operate at scale. We believe this pilot can help establish a robust foundation for wider industry adoption.”

By successfully turning hazardous automotive waste back into valuable, reusable base oil, HPCL and Tata Motors are setting a definitive new benchmark for resource efficiency and environmental stewardship in India’s automotive sector.