At present, the overall scale of the scrap car dismantling industry in the United States has reached about $70 billion, accounting for one third of the overall output value of the circular economy in the United States. Correspondingly, there is a perfect scrap vehicle disposal system in the United States. At present, there are more than 12,000 dismantled vehicles, more than 200 professional crushing enterprises, and more than 50,000 parts remanufacturing enterprises.
LKQ of USA operates more than 40 stores that dismantle scrapped cars and sell available parts to repair men or some refurbishment companies. LKQ, founded in 1998 and went public in October 2003, now has a market value of $8 billion.
Back to China domestic market, the scrap car dismantling is still in the period of violence, second-hand car parts has not yet become the mainstream —— now there are two big domestic spare parts market:one is located in Guangzhou Chen Tian, annually is 600-70 billion market, the other is located in Lian Yun Gang, it focus on the truck spare parts business. two parts market together are coming into one hundred billion or so. One famous expert said that the Chinese car dismantling market would grow to 600 billion yuan in the future. As you can see, this market scale is almost the same as the entire rear market capacity.”Eighty percent of the American aftermarket is on the old spare parts.”In the future of Chinese aftermarket parts is main on the car dismantling parts and second-hand parts. Of course, the premise is to ensure the quality and safety of these dismantled parts. Also the expert said that the business model of the traditional car dismantling industry is to collect cars —— destructive disintegration —— raw material sales, earning a few money for raw materials, and the reutilization rate of spare parts is not high. Moreover, in the traditional operation mode, there will be a large amount of solid waste left, the oil permeates the soil, and the air pollution and other problems. In terms of efficiency, the traditional operation is more extensive, ” the efficiency is one fifth to one sixth of the intelligent demolition car.”
Environmental Protection Law requires that the dismantling of scrapped cars must be treated smokeless. The development of dismantling machines and pressure frames just caters to the market, so the future of China’s scrapped cars will be a sunrise industry in the future.
Post time: Nov-14-2023