This year's government work report clearly put forward "orderly promotion of carbon peak carbon neutrality work", the automotive industry in order to achieve the "double carbon" strategic goal, must achieve the whole industry chain carbon reduction and decarbonization, of which auto parts remanufacturing is an indispensable part.
Parts remanufacturing is to repair or remanufacture the functional damage or scrapped parts through remanufacturing processes and technologies, and the performance of remanufactured parts and components meets or exceeds the original new product requirements. The analysis shows that the remanufacturing of parts and components can be recycled and scrapped products contain about 70% of the added value, compared with the original manufacturing, can save materials, energy consumption of more than 70%, reduce manufacturing costs by 30% to 50%; compared with the manufacture of new products, the adverse impact on the environment is significantly reduced. To this end, vigorously developing the parts remanufacturing industry is of great significance to the automotive industry to reduce emissions and carbon, energy conservation and cost reduction, as well as to promote the implementation of the "double carbon" strategic goal.
01
The development experience of the international auto parts remanufacturing industry is worthy of attention
The development of auto parts remanufacturing industry has formed a consensus on a global scale, and the development experience of developed countries and regions in the following four aspects is worth learning from the mainland.
1． Driven by market demand, it promotes the sustained and rapid development of the industry. European auto parts remanufacturing has taken a hundred years; American auto parts remanufacturing began on the eve of World War II. In Europe, due to the increase in car ownership, the growth of the average age of the market and the transformation of maintenance methods, the parts remanufacturing industry has risen rapidly; in the United States, World War II prompted vehicle and parts manufacturing enterprises to switch to military products, the parts supply market is tight, and most of the required maintenance parts are solved by the acquisition of old parts remanufacturing. After World War II, the automobile industry in Europe and the United States developed rapidly, the demand for automotive aftermarket market increased significantly, and the parts remanufacturing industry continued to accelerate and continue to develop driven by market demand.
2． Professional cluster development, the formation of a sound industrial service chain system. European and American auto parts remanufacturing products cover a wide range, including engines, transmissions, steering gears, starting motors and other types of remanufacturable parts, and in technology research and development, manufacturing, marketing services and other aspects of the formation of a complete system. In recent years, the development momentum of the remanufacturing industry in Europe and the United States has been rapid. Taking the United States as an example, the annual output value reaches 100 billion US dollars, of which auto parts account for more than 40%, and there are more than 40,000 auto parts remanufacturing enterprises. The auto parts remanufacturing industry in Europe and the United States has developed in professional clusters, concentrated in the US-Mexico border, Central and Eastern Europe, and the surrounding areas of Birmingham, the United Kingdom, etc., and the clustering helps the professional recycling, dismantling, cleaning and remanufacturing production of old parts, forming an industrial chain and supporting service chain, and supporting the sustainable and rapid development of the remanufacturing industry.
3． Continuous innovation in remanufacturing promotes the iterative upgrading of product technology. Developed countries promote the innovative concept of "design-oriented remanufacturing", where product defects are found through remanufacturing and improved in new product design. Many automotive R&D centers maintain regular communication with parts remanufacturing enterprises and promote product technology improvement with the help of reports on remanufacturing technology. From a certain point of view, the remanufacturing process is the process of technology and quality improvement, through the failure analysis of old parts, combined with the remanufacturing experience of multi-variety products, to promote product design, production process upgrading and improvement.
4． The market recognition is high, and the products have been widely promoted and applied. In Europe and the United States, remanufactured products are widely advertised as green products. The auto parts remanufacturing industry chain is perfect, the market is mature, and the remanufactured products are equal to or higher than the quality and performance of the prototype new products. It is highly accepted by consumers, and remanufactured products are generally used for part replacement during the warranty period. At the same time, vehicle and parts companies also actively participate in and support the remanufacturing related business. In recent years, the proportion of recycling of auto parts in developed countries has reached more than 80%, and remanufactured parts account for more than 70% of the automotive aftermarket, becoming an important force in green production and consumption. It is worth mentioning that the development level of Japan's auto parts remanufacturing industry is no less than that of Europe and the United States, and even some aspects are better.
02
The development of the auto parts remanufacturing industry in mainland China is in the ascendant
1． Policies and regulations promote the development of the remanufacturing industry. The state and relevant ministries and commissions have issued a series of policies and regulations: such as the Guiding Opinions on Accelerating the Establishment and Improvement of a Green and Low-Carbon Circular Development Economic System issued by the State Council, the "14th Five-Year Plan for the Development of circular economy" issued by the National Development and Reform Commission, the "Implementation Plan for Promoting Green Consumption" and the "Interim Measures for the Management of Auto Parts Remanufacturing Specifications" issued by the National Development and Reform Commission and other ministries and commissions, and the "Pilot Implementation Plan for extending producer responsibility for automotive products" issued by the Ministry of Industry and Information Technology and other four ministries and commissions, etc., in order to promote the remanufacturing industry standardization of parts, Healthy development provides policy guarantees, puts forward goals and implementation requirements.
2． The development of the remanufacturing industry has achieved positive results. With the help of policies, the mainland auto parts remanufacturing industry has moved forward in exploration and formed a certain scale. Through efforts, auto parts remanufacturing technology research and development, production and manufacturing, raw material supply, marketing services and other systems have been basically established; key technologies of remanufacturing have made important breakthroughs; products have also been gradually expanded from traditional automobile engines, transmissions, generators, starters, turbochargers, etc., to the "three electricity" system of new energy vehicles. According to preliminary statistics, in 2021, there will be nearly 700 auto parts remanufacturing production enterprises in the mainland, accounting for 35% of the number of remanufacturing enterprises in the country; the output value of auto parts remanufacturing will reach 20 billion yuan, accounting for 1/3 of the output value of the national remanufacturing industry. All these have laid a good foundation for the future development of the auto parts remanufacturing industry.
03
There are various problems in the parts remanufacturing industry
1． Most companies have smaller capacity and weak profitability. In addition to the tire industry in the mainland, there are more than 100 large-scale remanufacturing enterprises, and the total number of other auto parts remanufacturing enterprises does not exceed 20, most of which have small production capacity, and their products are mainly sold in overseas markets. Because the product can not open the sales channel, it is difficult for enterprises to develop on a large scale, the cost of products remains high, the profitability is generally weak, and many enterprises are struggling to develop and even survive. In the automotive aftermarket, the proportion of remanufactured auto parts in Europe and the United States in the maintenance share has reached 60% to 70%, while the mainland share is only 3% to 5%, and the market needs to be developed urgently.
2． The implementation of policies needs to be strengthened, and the development of enterprises is short of funds. In recent years, the remanufacturing industry policy and regulation system has been gradually established, which has played a guarantee role for industrial development. However, the implementation of policies and regulations is not in place, and relevant supporting measures still need to be improved; there is still a lot of work to be done to promote the standardized development of the industry and the effective supervision of the market. Coupled with the low social awareness of the remanufacturing industry, the enthusiasm of mainland vehicle and parts enterprises to participate is not high, and the investment of the financial industry in the industry is weak, making it difficult for remanufacturing enterprises to obtain financing, lack of development funds, and serious lack of development momentum, affecting the improvement of production capacity and the development of market scale.
3． Consumers' cognitive understanding is insufficient, and the promotion and use of products are restricted. Due to insufficient publicity and lack of remanufacturing green consumption concepts, mainland consumers generally believe that remanufactured products are "second-hand goods", and are skeptical about the quality and performance of remanufactured products, and their acceptance and willingness to use are not high. There is no precedent for remanufacturing products for part replacement during the warranty period in the mainland, but the application of the European and American replacement model is the norm. Facts show that the lack of awareness of remanufactured products and the habit of consumers to directly change parts, coupled with after-sales maintenance habits, dismantling and improper storage, etc., lead to low output rate of old parts, and the phenomenon of "waste parts cannot be collected, and remanufactured products are not welcome", which restricts the normal development of the industry.
4． Industrial supervision needs to be strengthened, and "bath parts" interfere with market development. The remanufacturing industry of auto parts in the mainland started late, the industrial chain is not perfect, the supporting facilities are not perfect, and the research and development level and production quality of enterprises need to be improved. At the same time, due to the weak binding force of relevant policies and regulations, there is no effective market supervision, and unscrupulous traders have replaced remanufacturing by recycling old parts to "clean" and "renovate", or carry out irregular remanufacturing production, resulting in "bath parts" or remanufactured products of substandard quality flowing into the market. This phenomenon of mixed eyes and beads has caused consumers to misunderstand the remanufactured products and seriously interfered with the promotion and use of the remanufactured products.
5． There is a shortage of professional talents, and the ability of industrial innovation needs to be improved urgently. Due to the lack of necessary funds, the mainland auto parts remanufacturing industry technology research and development capabilities are weak, and at the same time, there is a lack of talents in professional technology, quality, management and other aspects, resulting in insufficient systematic construction in technical standards, product research and development, manufacturing, supply support, marketing services and equipment support, which seriously affects the sustainable development of the remanufacturing industry. At present, the innovation of the mainland auto parts remanufacturing industry needs to be strengthened.
04
Proposal for the development of the auto parts remanufacturing industry in mainland China
1． Establish and improve the system of policies and regulations to promote the rapid development of the industry. Effectively strengthen the construction of auto parts recycling system, establish a reverse logistics system for used parts, solve the problem of import channels and raw material shortages of used parts; clarify the relevant policies and regulations, solve the problem of value-added tax on the procurement of used parts of remanufacturing enterprises, and reduce the cost of enterprises; establish an insurance rate adjustment mechanism to encourage and guide consumers to use remanufactured products in the process of automobile maintenance; strengthen the implementation of policies and regulations and their supporting measures, implement the extended management system of producer responsibility of automobile products, and give full play to its leading role. Effectively help the rapid development of the remanufacturing industry.
2． Promote the construction of industrial bases and form a gathering effect. At present, the remanufacturing industry of parts and components in mainland China has initially shown a trend of transformation from pilot demonstration to industrial clustering. For example, the national remanufacturing industry demonstration base of Shanghai Lingang Industrial Zone has attracted a number of remanufacturing enterprises to settle in, and agglomeration has achieved initial results; Hejian City, Hebei Province, relying on the reverse logistics system and rich remanufacturing raw material resources, actively builds a technology, production and commercial operation platform, builds a remanufacturing industry service chain, and initially forms an industrial agglomeration and development advantage. These successful cases are worth learning from the industry.
3． Continuous innovation to promote high-quality industrial development. Innovation is the driving force behind industrial development. It is necessary to further strengthen the scientific and technological innovation of the auto parts remanufacturing industry, increase innovation investment, and improve the innovation system; effectively strengthen the leading and promoting role of industrial innovation, and improve the level of remanufacturing; strive to promote the application of key technologies for remanufacturing such as nondestructive testing, additive manufacturing, and flexible processing; cultivate specialized auto parts remanufacturing old parts recycling enterprises, and improve the market-oriented scale of the remanufacturing industry. At the same time, we will further standardize the evaluation and certification system of remanufactured products, promote product quality upgrading, actively promote the digital transformation of remanufacturing technology and equipment, cultivate a number of leading enterprises, and achieve remanufacturing industry upgrading and high-quality development.
4． Advocate green consumption and vigorously promote product applications. Remanufacturing is fundamentally different from repair and refurbishment. Remanufacturing is a new remanufactured manufacturing process that achieves complete functional repair through a high-tech manufacturing process to ensure that the performance of the remanufactured product is not lower than or even exceeds that of the new product. To this end, it is necessary to strengthen publicity and raise consumer awareness of remanufactured products. At the same time, we will actively guide vehicle and parts enterprises and social capital to invest in the field of remanufacturing, promote the marketing and use of parts and components remanufactured products and the concept of green consumption, encourage consumers to use remanufactured green products, and advocate the public sector and government units to give priority to the use of remanufactured products in automobile maintenance.
5． Focus on market-driven, improve the scale of the remanufacturing industry. In addition to relying on policy pull, the auto parts remanufacturing industry also needs to continuously cultivate and tap market demand, and achieve the development of policy and market "two wheels" through market drive. In 2020, the size of the mainland automobile aftermarket is 1.6 trillion yuan, of which the after-sales maintenance market size is nearly 700 billion yuan. Compared with developed countries and regions such as Europe and the United States, the development space of the auto parts remanufacturing industry in mainland China is huge. In 2021, the number of scrapped cars in the mainland will be close to 3 million, and a large number of obsolete vehicles provide rich resources for parts remanufacturing. The development of auto parts remanufacturing industry is promising.
6． Practice internal skills and improve the level of enterprise operation. Strengthen the construction of product research and development, used parts procurement, manufacturing and market service system of remanufacturing enterprises. Increase investment, pay attention to product research and development, improve the dismantling, cleaning, manufacturing, assembly and other equipment and production capacity, establish the procurement, manufacturing, product monitoring and delivery of old and updated parts and other whole process specification standards, improve product testing technical means and capabilities, to ensure the recyclability of old parts, product processes and remanufactured finished product quality. Actively carry out the management system and product certification of remanufacturing enterprises, improve the operation and management level of remanufacturing enterprises, and continuously improve product brands and corporate images.
7． Create a good market environment and promote the standardized development of the industry. Strengthen the multi-dimensional supervision of the market, and strictly prevent "bath parts" and "refurbished parts" from disrupting the market. Strengthen market supervision, supervise and manage the quality of remanufactured products in accordance with the law, investigate and deal with illegal acts of remanufactured product certification, and implement standardized use and unified management of remanufactured product labels; strengthen the supervision and management of the sale of "five major assemblies" parts and components by scrapped automobile recycling and dismantling enterprises, and the standardized promotion and use of remanufactured products by maintenance enterprises, and deal with enterprises that do not meet relevant regulations according to law. Constantly improve the marketing environment and promote the healthy and sustainable development of the remanufacturing industry.
Looking forward to the next 10 years, the parts remanufacturing industry will become an important starting point for the mainland automotive industry to implement the "double carbon" strategic goal. The author firmly believes that with the strong support of national policies and regulations, the combination of industry and finance, the active participation of vehicle and parts enterprises, the strong internal strength of remanufacturing enterprises, the recognition of consumer green consumption cognition, and the active empowerment of the media industry, the great development of the auto parts remanufacturing industry in the mainland is just around the corner.
Source: China Automotive News Network (Author: Ye Shengji is the chief engineer and deputy secretary-general of China Association of Automobile Manufacturers)
![Easy Car Research Institute interprets the after-sales of the car market: door-to-door pick-up and delivery of cars, return of old parts, etc. need to be actively improved[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)