Mumbai: Petronas Lubricants India and Tata Motors have signed a Memorandum of Understanding to pilot a structured model for the responsible collection and recycling of used automotive lubricants across Maharashtra and Tamil Nadu, marking a fresh push toward cleaner waste management in India’s automotive sector.
The pilot project will focus on building an organised and traceable system for managing used lubricants, which are classified as hazardous waste. The process will cover collection, storage and recycling, with used oil being converted into high-quality re-refined base oil.
The collaboration brings together Petronas Lubricants India, part of the Petronas group, and Tata Motors, India’s largest commercial vehicle manufacturer. The two companies said the initiative is designed to support India’s evolving Extended Producer Responsibility framework and contribute to the country’s circular economy goals.
“Achieving true circularity in used oil begins when re-refined base oil is reintegrated into finished lubricants. Our collaboration with Tata Motors marks an important step toward building a scalable model for used oil circularity and reflects the strength of our channel network as we work to significantly reduce our carbon footprint across operations,” said Binu Chandy, India MD, Petronas Lubricants India, launching the pilot project.
Under the initiative, Petronas Lubricants India will pilot the aggregation and movement of used lubricants through authorised and specialised collection mechanisms. The company will also work to ensure that the collected oil is channelised to genuine, registered recyclers.
Tata Motors, meanwhile, will use its extensive authorised service network to enable structured collection and encourage responsible disposal across its ecosystem. In simpler terms, the oil will be given a proper route map — which is more than many commuters can say on a Monday morning.
“At Tata Motors, practices and partnerships promoting sustainability are integral to advancing circular economy principles and creating meaningful environmental impact across the automotive value chain. Through our collaboration with Petronas Lubricants India, we are taking a significant step towards establishing a structured framework for the collection, recovery, and recycling of used automotive lubricants. This pilot initiative aligns closely with our commitment to responsible resource stewardship and supports India’s broader sustainability ambitions. By bringing together the complementary strengths and expertise of our two organisations, we aim to assess the viability of a scalable used-oil recycling model that can drive long-term value and contribute to industry-wide progress.” said Vikram Agrawal, Head – Spares and Non-Vehicle Business, Tata Motors Ltd.
Used automotive lubricants, if not handled properly, can pose environmental risks. By creating a system that improves collection, recycling and traceability, the pilot aims to reduce such risks while improving resource efficiency.
The companies said the model is intended to be scalable, with learnings from Maharashtra and Tamil Nadu expected to help assess broader implementation potential. The initiative also reflects a growing industry focus on circularity, where waste materials are recovered, processed and reintroduced into productive use instead of being discarded.
For India’s automotive and lubricant sectors, the partnership could become an important test case in responsible waste management. If successful, the model may help set stronger benchmarks for how used automotive oil is collected, recycled and brought back into the value chain — proving that even old oil can have a second career.
