Auto parts remanufacture, including minivan 2019 is a new “blue ocean”

How do you think about auto parts remanufacturing, including minivan 2019?

The management measures for the recycling of scrapped motor vehicles were officially announced in May 2019, the remanufacturing of “five major assemblies” such as engine, gearbox, front axle, rear axle, and the frame was lifted. This is a good signal for the automotive aftermarket, including minivan 2019.

Spare part market:

As a big country of automobile consumption, China’s automobile industry has ranked first in the world for nine consecutive years, and its auto parts market has been expanding, including minivan 2019. The release of auto parts-related policies will also help standardize auto parts remanufacturing behavior and market order, guarantee the quality of remanufactured products, accelerate the standardized and large-scale development of the remanufacturing industry, and bring broad prospects for the auto parts remanufacturing industry.

The remanufacturing industry has taken another step forward recently. The National Development and Reform Commission said on Feb. 18 that it is currently further revising and improving the management measures for the remanufacturing of motor vehicle parts.  This also means that the long-planned policies and measures for parts remanufacturing will be introduced quickly. This will bring great benefits to this industry. Experts estimate that will become the new “blue ocean” of automobile industry, including minivan 2019.

The National Development and Reform Commission (NDRC) released the draft of the Interim Measures for the Administration of Remanufacturing of Motor Vehicle Parts for public comment in Dec. 2019. The management measures clarify the concept of remanufacturing, namely, it is according to national standards, professional repair or upgrade of old motor vehicle parts that are no longer used for reasons of functional damage or technical elimination, including Minivan 2019. So that their performance characteristics and safety and environmental performance are no lower than those of new prototypes.  At the same time, the “threshold” conditions for participating enterprises have been clarified. Also, the scope of parts for remanufacturing has been defined and a traceability system has been established to strengthen management.

Per experts, the remanufacturing of parts in Europe and America accounts for 50% of the automotive aftermarket, while the remanufacturing share in China is only 2% to 3%. With the increase of the number of automobiles in China, such as minivan 2019 and the growth of the car age, the remanufacturing of auto parts in China will create a new huge market.

Although the “Administrative Measures for the Recycling of Scrapped Motor Vehicles” has been implemented since June 1, 2019 and the remanufacturing of the “five major assemblies” was goes up.  From the current development of China’s remanufacturing industry, it is still difficult for China’s auto parts, including minivan 2019 remanufacturing industry to truly land.  

There are three reasons:

Firstly, because the related technical standards, management standards and market mechanism are not perfect, the backward technical ability, poor production environment, lack of professional skills training, inadequate market supervision, and other issues have affected the development of remanufacturing enterprises and the cultivation of the market.

Secondly, the recognition of remanufacturing consumption is insufficient, and consumers generally think that the quality of remanufactured products can’t be guaranteed.  

 Finally, the current laws and regulations restrict the development of the remanufacturing industry in some aspects. Therefore, the relevant management system needs to be improved urgently and the supervision system, market mechanism of products, and remanufacturing objects need to be formed.

Future prospection:

To the future, with the popularization of public awareness, the promotion of dismantling technology and remanufacturing technology, and the strengthening of government’s “pipe release service”, it will certainly promote the large-scale development of motor vehicle parts and including minivan 2019 remanufacturing industry, and will also improve the recycling rate of motor vehicles, improve the operating conditions of recycling and dismantling enterprises, enhance the recycling residual value of scrapped motor vehicles and the enthusiasm of consumers to deliver vehicles, and achieve a win-win situation among consumers, dismantling enterprises and remanufacturing.

According to China’s customs statistics, from January to February 2021, the export value of auto parts, including minivan 2019 was US$ 11.6 billion, a year-on-year increase of 52.5% (the same below).  The import value was US$ 6.65 billion an increase of 48.2%. Affected by the COVID-19 epidemic and the deep adjustment of the international auto market, auto parts and components decreased by 39.5% in February 2020. With the acceleration of the resumption of production of related enterprises, and the second COVID-19 outbreak overseas (especially in the United States and Europe), the domestic relative environment improved. Moreover, a large number of overseas auto parts and components were transferred to domestic production and export. It rose to 5.27 billion US dollars in Feb. 2021, an increase of 152.2%.

Auto parts, including minivan 2019, the top six export destinations are: US’s US$ 2.33 billion, an increase of 54.7%; Japan’s 870 million US dollars, an increase of 50%; South Korea was 660 million US dollars, an increase of 56.5%; Mexico’s US$ 650 million, an increase of 42%; Germany’s 500 million US dollars, an increase of 47.2%; Thailand reached 350 million yuan, up 81.6% year on year.

Therefore, demand for auto parts remanufacturing, such as minivan 2019 will be more and more.