Castrol India and Tata Motors pilot used oil circularity in Karnataka
Castrol India Limited and Tata Motors have signed an MoU to launch a pilot programme for a used oil circularity ecosystem in Karnataka. The initiative will use Tata Motors' service network as collection points and Castrol India's expertise to channelise oil to registered recyclers. This collaboration aims to create a traceable and scalable model for managing hazardous used oil responsibly.

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Castrol India Limited and Tata Motors have signed a memorandum of understanding (MoU) to jointly launch a pilot programme for a used oil circularity ecosystem. The collaboration aims to establish a structured, traceable system for the responsible collection, channelisation, and recycling of used engine oil from Tata Motors' authorised service network in Karnataka. This initiative addresses the long-standing gap in managing used oil, a material classified as hazardous waste, by creating a credible and scalable model linking collection to high-quality re-refined output.
Under the agreement, Tata Motors' authorised sales and service touchpoints in Karnataka will serve as structured collection points for used engine oil. Castrol India will anchor the channelisation of the collected oil to registered recyclers. The pilot leverages Castrol India's lubricant expertise and insights from previous used-oil collection pilots in southern India to ensure quality and traceability throughout the recycling process.
Strategic Collaboration for Sustainability
The MoU builds on the existing relationship between the two companies and reflects a shared commitment to advancing sustainability through innovation. The initiative complements Tata Motors' broader sustainability agenda, which includes electric vehicles, CNG platforms, and energy-efficient mobility solutions. It aligns with Castrol India's strategy to embed recycled materials in high-performance lubricant products.
| Aspect | Details |
|---|---|
| Partners | Tata Motors, Castrol India Limited |
| Region | Karnataka |
| Objective | Used oil circularity ecosystem |
| Key Activity | Collection, channelisation, and recycling of used engine oil |
Executive Commentary
Mr. Vikram Agrawal, Head–Spares and Non-Vehicle Business, Tata Motors Commercial Vehicles, emphasised the environmental significance of the partnership. He stated that responsible used-oil management is central to building a circular automotive ecosystem in India. He noted that the volume of used engine oil generated annually makes responsible collection and recycling a matter of significant environmental consequence, and this partnership creates a scalable model for high-quality re-refined output.
Mr. Anoop Jindal, Vice President–B2B (OEM) Sales, Castrol India Limited, highlighted that creating a circular economy for lubricants requires collaboration across the entire value chain. He described this association as Castrol India's first OEM collaboration focused on building a structured ecosystem for responsible used-oil management in India. He added that insights from previous pilots have deepened the understanding of the opportunities and challenges in scaling circularity.
Historical Stock Returns for Castrol
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.07% | -1.72% | +0.26% | -3.32% | -17.92% | +29.67% |
What metrics will be used to evaluate the success of the Karnataka pilot before potential expansion to other regions?
How will the collected used oil be certified to ensure it meets high-quality re-refining standards?
Could this partnership model be extended to include other OEMs to create a nationwide circular ecosystem?































