The conditions for the development of China's automobile remanufacturing industry have matured, but the source of scrapped vehicles has not yet been completely resolved, and remanufacturing companies still face the embarrassment of “a miracle is difficult for women to be without riceâ€. With the support of policies, the automobile remanufacturing industry will enter a new stage, and foreign-funded enterprises are also observing this huge potential market.
In 2008, the National Development and Reform Commission first launched the "Administrative Measures for the Remanufacturing of Auto Parts", and identified 14 auto companies as remanufacturing pilot enterprises. On September 14, three years later, the National Development and Reform Commission issued a "Notice on Deepening Remanufacturing Pilot Work" again, which will expand the scope of remanufactured product types and pilots, and increase support.
Foreign investment is about to make
According to statistics from the China Association of Automobile Manufacturers, in 2009, about 110,000 engines were remanufactured, about 60,000 more transmissions were manufactured, and about 1 million generators and starters were manufactured. The output value was less than 2.5 billion yuan. A few years ago, the annual output value of American auto parts remanufacturing has reached 50 billion U.S. dollars.
However, the potential for remanufacturing of auto parts in China still attracts foreign companies to compete for investment. According to statistics, as of the end of 2010, China’s civil vehicle ownership was close to 80 million vehicles, and nearly 4 million vehicles were scrapped domestically.
Jinan Fuqiang Power Co., Ltd., which operates well in the current 14 remanufacturing fields, is a Sino-British joint venture specializing in engine remanufacturing. The foreign party is the Liszt Group in the United Kingdom, and its holding company, Sandwell Company in the United Kingdom, is the largest in the UK. Specialized engine remanufacturing company.
On August 27, as the first powertrain remanufacturing base in China and the first batch of pilot enterprises for auto parts remanufacturing, the Volkswagen FAW engine (Dalian) was established as a powertrain remanufacturing base jointly invested by Volkswagen Group and China FAW Group. ) The company's powertrain remanufacturing project will be put into production in Dalian, with an initial investment of approximately RMB 100 million. It will begin with engine remanufacturing and will include transmission remanufacturing in the future. The project will initially have an annual production capacity of 5,000 units.
Also in August, Tianqi announced that it has signed a framework agreement with Germany's ALBA. Both parties intend to spend 100 million yuan to enter China's end-of-life vehicle recycling market, thereby extending the business to the field of fine scrapping and high-efficiency sorting equipment for used vehicles. According to the data quoted in the Tianchi’s private placement plan, in 2009, more than 2 million vehicles were recycled and dismantled in China. It is estimated that after 2020, the number of vehicles to be recycled will be about 10 million.
Chery, the largest remanufacturer in the field of chassis drive systems for commercial vehicles in North America, also expressed a keen interest in the Chinese auto remanufacturing industry and prepared to take the opportunity to enter the Chinese market.
Situation
"Our remanufactured spare parts have a market but no old machine. We can only make 200 engines a year. Our old machine comes from Shanghai Volkswagen, Shanghai General Motors and other after-sales networks that have strategic cooperation with us, or its Defective products produced by the 4S shop or the main engine factory. A lot of scrapped cars have gone directly to the steel mills," said a veteran of a car remanufacturing company.
According to the "China Automotive Market Yearbook 2010" statistics, in 2009 China's automobile ownership was 77,416,500 units, and the actual scrapped amount accounted for only 2.61% of the inventory, which was far below the level of 6% to 10% of write-off rates of write-offs in developed countries such as Europe and America. .
In July 2010, the publication of the Regulations on the Recycling and Dismantling of Endangered Motor Vehicles (Draft for Soliciting Opinions) (hereinafter referred to as the “Draft for Soliciting Opinionsâ€) brought a glimpse to automobile dismantling companies and remanufacturers. The automobile assembly and other parts and components proposed in the “Draft for Soliciting Opinions†can be sold to remanufacturers, continue to be used after remanufacturing and processing, and encourage automobile dismantling companies to form long-term strategic cooperation with automobile manufacturers and remanufacturing enterprises. alliance.
According to sources, the Regulations on the Management of the Recycling and Dismantling of Scrapped Vehicles will be introduced before the end of 2011. However, due to coordination problems between government departments, the remanufacturing of auto parts will still be in a predicament of “not falling under the weight of riceâ€.
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