According to the statistics of China Renewal Resource Recycling Association, the scale of canceled vehicles in China’s automobile market is 7 million to 8 million every year, and the scrapped vehicles from 2015 to 2017 only account for 20%~25% of the canceled vehicles. Due to the low recycling price of scrapped cars, some car owners are unwilling to choose the formal vehicle scrapping channels, and the growth of the formal scrapping channels has been in a slow state. In the recovery data from 2015 to 2017, more than 60% of it was digested by different market entities, a large part of which was illegally dismantled. From the perspective of the actual annual recycling proportion of scrapped cars, the recycling amount of scrapped cars in China only accounts for 0.5%~1% of the car ownership, which is quite different from that of 5%~7% in developed countries.
Industry analysis believes that although China’s scrap car recycling industry has a good prospect, but the loss of scrap cars is also more serious. The apped cars resold to remote areas have not only had an impact on regular recycling enterprises, but also caused environmental pollution and safety risks.
In this regard, the State Council also pointed out in relevant documents that the qualification licensing system of scrap automobile recycling enterprises should be further improved, and the relevant licensing conditions are not fully conform to the reality; in the process of recycling and dismantling, solid waste and waste oil cause environmental pollution is prominent, which needs further supervision; the current measures of dismantling “five assembly” can only be used as the provisions of scrap metal, which has some rationality at that time, but with the substantial growth of car ownership and scrap quantity, the waste of resources is more and more obvious, which is not conducive to the development of resource recycling and remanufacturing of motor vehicle parts industry.
From the existing information and the relevant content of the draft for Comments, the revised Management Measures has targeted the above pain points. Industry insiders believe that the above illegal dismantling of the gray industrial chain, is expected to be contained after the introduction of the New Deal.
”According to the existing information, although the revised “Management Measures” will directly address the current pain points of the automobile scrapping industry, there are still some industry insiders concerned about the trend of the scrapped car parts. In the case of legal status, whether the waste parts will enter the new parts market, whether there will be refurbished cars and other issues will become another concern after the introduction of the new rules. However, one expert said these concerns would not arise.”At present, most of the vehicles that need to be scrapped are products with a service life of more than 10 years. At present, when the technological upgrading of automobile products is so fast, there are few old parts that can be used in new models.”
From the actual situation, the current situation of China’s scrapped cars is indeed as that expert said, but in this way, the scrapped car parts remanufacturing enterprises still need to dissolve and process the scrapped car parts again, and the relevant regulations of recycling and remanufacturing seem to form a difficult “contradiction” with the scrapped life of the scrapped cars. This contradiction is scrap parts necessary stage in the process of remanufacturing industry development, in the I, I old emissions standard models phased out, the state for emissions standards is higher and higher, between new products and scrap car parts universal rate will increase, the “contradiction” will be resolved slowly. With the transformation of old model production enterprises and the gradual expansion of the new energy vehicle market, scrapped parts enterprises are expected to usher in good news.
At present, the remanufacturing utilization rate of available auto parts in developed countries reaches about 35%, while the remanufacturing utilization rate of disassembled available parts in China is only about 10%, mainly selling scrap metal, which is a large gap with foreign countries. After the implementation of the revised policy, the policy will encourage and guide the market to the route of refined dismantling and rationalization cycle in many aspects, which is expected to bring further improvement of the recovery rate of scrapped cars and the market space of the scrapped parts remanufacturing industry.
Up to now, there have been a number of listed companies in the electronic waste, vehicles, power battery disassembly, energy storage cascade utilization and related supporting equipment and other fields of accumulated layout. In the automobile scrap industry as a whole to be the good at the same time, how to strengthen the flow of scrap car available parts regulation and how to reduce the car scrap industry business tax (foreign car dismantling industry tax rate in 3%~5%, and our country scrap car recycling dismantling industry pay taxes over 20%) will become the important problems need to face the relevant regulators.
Post time: Nov-09-2023