Castrol India, Tata Motors Sign MoU for Used Engine Oil Recycling Pilot in Karnataka

Castrol India Ltd. has signed a Memorandum of Understanding (MoU) with Tata Motors to launch a pilot programme for the collection and recycling of used engine oil, as per a filing dated June 29, 2026.  

The programme will be rolled out through Tata Motors' authorised sales and service network in Karnataka. Used engine oil generated during vehicle servicing will be collected at these locations before being sent for recycling. 

Collection Through Authorised Workshops 

Under the agreement, Tata Motors' authorised workshops will function as collection points. Castrol India will coordinate the storage, movement and transfer of the collected oil to registered recyclers.  

According to the companies, the process will include documentation to track the movement of used oil from collection centres to recycling facilities. 

Used Engine Oil Classified as Hazardous Waste 

Used engine oil is classified as hazardous waste under existing regulations and requires authorised handling and disposal. The companies said the pilot has been designed around these requirements.  

Castrol India will also use operational learnings from its earlier used oil collection projects carried out in southern India while implementing the Karnataka programme. 

Existing Association Between the Companies 

The MoU extends the existing business relationship between Tata Motors and Castrol India. Tata Motors said the programme is linked to its environmental and resource management activities across its commercial vehicle operations.  

Castrol India noted the project is also connected with its work on increasing the use of recycled base materials in lubricant production. 

About the Companies 

Tata Motors is India's largest commercial vehicle manufacturer and has been operating for more than eight decades. Castrol India, part of the bp group, has operated in the country for 115 years.  

The company runs 3 blending plants and distributes lubricants through more than 150,000 retail outlets across India, supplying automotive as well as industrial customers. 

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Castrol India and Tata Motors Share Price Performance  

As of 2:23 pm, June 29, 2026, Castrol India share price was trading at ₹185.26, down 0.06%, while Tata Motors Passenger Vehicles Ltd share price was trading at ₹346.95, down 1.77%. 

Conclusion 

The Karnataka pilot will examine how used engine oil can be collected, tracked and sent for recycling through an organised system. The results will be reviewed before any future expansion of the programme. 

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