74 The so-called Dismantling Law (Law No. 12,977), in force since 2015, has encouraged companies already operating in the parts and scrap trade to formalize their activities and integrate into the automotive supply chain. As a result, informality has declined in both the sale of used parts and the reuse of materials recovered from dismantled vehicles. According to the São Paulo Department of Transportation (Detran-SP), the state has 19 registered recycling facilities and 923 licensed dismantling companies, authorized— depending on their scope of operations—to recycle materials and dismantle trucks. According to the state agency, the key distinction is that dismantling companies are authorized to recover and resell parts for reuse, while recycling companies are dedicated specifically to processing materials for recycling, although both are permitted to receive trucks. Arthur Rufino, CEO of Octa, underscores the importance of the law for the sector. He speaks with authority, having been involved in the founding of JR Diesel, a benchmark in this segment. “JR began operations in 1985 and, starting in 1997, implemented a parts traceability system. In 2008, it further enhanced this system to achieve 100% component traceability. The practical foundations for the Dismantling Law were largely based on JR Diesel’s operations,” he explains. Rufino highlights that these companies play a key role in promoting circularity within the automotive sector. According to him, their work involves dismantling vehicles to recover parts for resale—such as trim components— or for remanufacturing, including items like clutches and alternators. “There are also materials to be sorted—such as steel, glass, plastics, copper, and aluminum—each of which is sold to specialized scrap processors. Non-recyclable materials are likewise collected and properly handled by dedicated companies, including items such as fabrics, fibers, and components contaminated with oil,” he adds. Rufino points out that all companies operating in this sector must be duly certified. “The Dismantling Law has been highly positive, as it has brought greater regulatory clarity and legal certainty,” says the executive. “The sector is now able to engage directly with the government—today, I am even invited to meetings at the Ministry of Development, Industry, Trade and Services (MDIC),” he adds. Associations linked to the automotive industry recognize the strategic importance of this activity and emphasize the need for effective fleet renewal programs, as well as vehicle inspection systems capable of removing unsafe and highemission vehicles from circulation, as noted by Gábor Deák, director of technology and sustainability at Sindipeças, the National Union of Automotive Components Industry. “The reuse of raw materials is an integral part of the circular economy,” notes Gábor Deák. He also believes that vehicle inspection must be established “as the foundation that will keep any fleet renewal program active and uninterrupted, as it should be.” According to him, combining these two initiatives—fleet renewal and inspection—results in lower greenhouse gas emissions and contributes to the preservation of life on the planet. Move Brasil: better for automakers As is widely known, the government launched the Move Brasil program in December 2025, allocating R$10 billion in financing at reduced interest rates—ranging from 11.8% to 12.7%—for the purchase of new or used trucks manufactured from 2012 onward. The funds are made available through the National Bank for Economic and Social Development (BNDES). Aimed at both fleet operators and independent drivers, the Move Brasil program runs through the end of May. By the end of February, funding had already been approved for the purchase of approximately 6,000 trucks. The program also offers reduced interest rates for participants who scrap vehicles over 20 years old through certified dismantling. While the program has helped stimulate truck sales, which declined by 9.2% in 2025, there is still no data on its effectiveness in promoting fleet renewal. As of the first week of March, neither the automakers’ association, Anfavea, nor the National Bank for Economic and Social Development (BNDES) had released figures on the number of trucks scrapped in exchange for reduced interest rates. Arthur Rufino estimates that, at most, 400 vehicles will be delivered to dismantling facilities by mid-year. He notes that two banks have already structured operations to acquire these vehicles, but as of the end of the first two months of 2026, no interested buyers had yet come forward. The Dismantling Law fosters circularity Enacted just over ten years ago, the law has helped reduce informality and integrate dismantling yards into the automotive supply chain. RECICLAGEM | RECYCLING | RECICLAGE
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