The automobile parts remanufacturing industry will become a new "blue ocean"
Xinhua News Agency, Beijing, February 19th (Reporter Li Zhiyong) - The Economic Reference Daily published a report on February 19th titled "The Automotive Parts Remanufacturing Industry Will Become a New" Blue Ocean ". The article states that the National Development and Reform Commission stated on the 18th that further modifications and improvements are being made to the management measures for the remanufacturing of motor vehicle parts. This also means that the long-awaited policy measures for parts remanufacturing will accelerate and bring significant benefits to this industry. Experts predict that the automotive parts remanufacturing industry will become a new "blue ocean" for the automotive industry.
Remanufacturing of automotive parts refers to the mass use of waste automotive parts, professional transformation and repair, to ensure that they have the same specifications and quality as new products. Generally speaking, compared to new products, remanufactured components have significant advantages in terms of cost, energy conservation, and environmental protection. Data shows that remanufacturing components can save costs by 50% and reduce air pollutant emissions by more than 80%.
In December 2019, the National Development and Reform Commission issued a draft for soliciting opinions on the Interim Measures for the Management of Remanufacturing of Motor Vehicle Parts, which was open to the public for public consultation. The management measures clarify the concept of remanufacturing, which refers to specialized repair or upgrading of old motor vehicle components that are no longer used due to functional damage or technical obsolescence in accordance with national standards, so that their performance characteristics and safety and environmental protection performance are not lower than those of the prototype new product. At the same time, the "threshold" conditions for participating enterprises have been clarified, the scope of remanufactured components has been defined, and a traceability system has been established to increase management efforts.
According to data released by the Market System Construction Department of the Ministry of Commerce, in 2019, the number of motor vehicle recycling in China was 2.295 million, a year-on-year increase of 15.3%. Since 2011, the number of scrapped vehicles in China has been showing a linear increase trend, and the green recycling and utilization of scrapped resources urgently needs to be elevated to a practical and operational level.
Experts say that currently, the remanufacturing of parts in Europe and America accounts for 50% of the automotive aftermarket, while China's remanufacturing share is only 2% to 3%. With the increase in the number of cars in China and the growth of car age, the remanufacturing of automotive parts in China may create a new huge market.
As a result, the policy level has been promoting the development of remanufacturing. From 2011 to 2013, policies were introduced every year to promote the development of remanufacturing, and a number of pilot enterprises and production bases were gradually established. In May 2019, the management measures for the recycling of scrapped motor vehicles were officially announced, and the remanufacturing of the "five major assemblies", including the engine, gearbox, front axle, rear axle, and frame, was lifted.
Although there has been a good start, China's automotive parts remanufacturing industry is still immature, with uneven management levels and many bottlenecks in the industry. Firstly, due to the imperfect technical standards, management standards, and market mechanisms, issues such as outdated technical capabilities, poor production environment, lack of professional skills training, and inadequate market supervision have affected the development of remanufacturing enterprises and market cultivation. Secondly, the recognition of remanufacturing consumption is insufficient, and consumers generally believe that the quality of remanufactured products cannot be guaranteed. In addition, current regulations and policies have constrained the development of the remanufacturing industry in certain aspects, and relevant management systems urgently need to be sound. The market mechanism for regulatory systems, products, and remanufacturing objects needs to be formed.
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