China would likely release policies on the auto parts re-manufacturing industry soon, reported the Xinhua-run Economic Information Daily last week.
The National Development and Reform Commission (NDRC), China’s top economic planner, last Tuesday said that it is currently making further amendments and improvements to the management measures for the remanufacturing of motor vehicle parts, meaning the long-awaited auto parts remanufacturing policies will be released soon.
Experts expect that the policies will bring significant benefits to the industry which will become the new “blue ocean” for the automotive industry.
Remanufacturing of auto parts refers to the mass use of used auto parts for the professional transformation and repair to make them have the same specifications and quality as new products.
Compared with new products, remanufactured parts have great advantages in terms of cost, energy saving and environmental protection.
Data shows that remanufacturing parts can save costs by 50 per cent and reduce air pollutant emissions by more than 80 per cent.
In December 2019, the NDRC released a draft on the management of the auto part remanufacturing to solicit public opinions.
In the draft, the threshold requirements for companies in this industry are clarified, and the scope of remanufactured components is defined.
It also stipulated that a traceability system will be established to strengthen management.
According to the data released by the Department of Market System Development under the Ministry of Commerce (MOC), in 2019, the number of motor vehicles recovered nationwide was 2.295 million, an increase of 15.3 per cent year-on-year.
Experts say that the remanufacturing of auto parts in Europe and America currently accounts for 50 per cent of the automotive aftermarket, while China’s remanufacturing has a share of two to three per cent.
With the increase of China’s automobile owners and vehicle age, the country’s auto parts remanufacturing may create a new huge market.