ELV compliance crisis hits auto sector as FY26 scrap target misses by 70 percent

A rule tweak blocks “other” steel scrap

Auto industry executives say ELV compliance rules have turned the sector non-compliant after a policy shift barred the use of other steel scrap for meeting requirements. With the FY26 scrap target missed by 70%, companies warn that rising future targets may be impossible without revisiting the policy, calling the current approach unrealistic and unworkable.