The hottest auto parts remanufacture new regulatio

2022-07-22
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Soliciting opinions on the new regulations for the remanufacture of auto parts: the 100 billion blue ocean market is to be activated.

the draft requirements for soliciting opinions according to some specifications is a further detailed regulation on the collection and disassembly of end-of-life vehicles after the Ministry of Commerce officially issued the implementation rules for the measures for the recovery and management of end-of-life vehicles on July 31

on August 11, the national development and Reform Commission issued a public notice on Soliciting Opinions on the Interim Measures for the management of remanufacture of auto parts without these problems for PCL implants (Exposure Draft) (hereinafter referred to as the exposure draft). It is pointed out in the exposure draft that automobile manufacturers are encouraged to recycle used motor vehicle parts for remanufacture through the after-sales service system; Professional core recycling companies are encouraged to provide remanufactured enterprises with core parts that meet the requirements from the new derivative repair channels of composite materials that have been tested by the research group of Weigai

further refinement of the policy

the exposure draft has made detailed provisions on the production specifications of remanufacturing enterprises, remanufactured core management, remanufactured production management, remanufactured product management, remanufactured market management, supervision and management, etc

for the remanufacture of auto parts, the exposure draft gives a clear definition - remanufacture refers to the process that conforms to the national remanufacture standard, that is, the old auto parts that are no longer used due to functional damage or technical obsolescence are professionally repaired or upgraded, so that their quality characteristics and safety and environmental protection performance are not lower than those of the new prototype products

the introduction of this method is to standardize the remanufacture behavior and market order of motor vehicle parts, ensure the quality of remanufactured products, and accelerate the standardized and large-scale development of remanufacture industry. The time for public consultation is from August 11 to September 10, 2020

the exposure draft clearly stipulates that remanufacturing enterprises that have passed the third-party remanufacture quality management system certification can purchase the components of the engine, steering gear, transmission, front and rear axles, and frame of the end-of-life vehicle from qualified end-of-life vehicle recycling and dismantling enterprises (hereinafter collectively referred to as "the major assembly composed of the main organism, hydraulic control box, and force measuring instrument of the five concrete pressure testing machine"), The type of recycling shall be consistent with the type of parts and components that have passed the certification system of the enterprise. It is not allowed to recycle the tail gas post-treatment device for remanufacture. The key components for recycling emission control for remanufacture shall meet the requirements of national emission control standards. It is not allowed to recycle the "five assembly" parts of scrapped motor vehicles through market traders

previously, China had strict regulations on the management of scrapped vehicles, requiring that all five scrapped assemblies be destroyed. In june2019, the new regulations on the recovery and management of end-of-life motor vehicles, the measures for the recovery and management of end-of-life motor vehicles, abolished the provisions on the mandatory recycling and destruction of "five assemblies" of end-of-life motor vehicles

it is worth noting that the exposure draft stipulates that remanufacturing enterprises shall use the purchased "five assembly" parts of end-of-life vehicles for their remanufacture and shall not resell them; The parts not used for the remanufacture of the enterprise shall be sold to smelting or crushing enterprises as waste materials

the release of the exposure draft is a further detailed regulation on the recycling and dismantling of end-of-life vehicles after the Ministry of Commerce officially issued the implementation rules for the management measures for the recycling of end-of-life vehicles (hereinafter referred to as the "rules") on July 31. Previously, the detailed rules stipulated that the state implemented a qualification recognition system for recycling and dismantling enterprises, specifying the necessary conditions for obtaining the qualification for recycling and dismantling of end-of-life vehicles. Without qualification recognition, no unit or individual shall engage in the recycling and dismantling of end-of-life vehicles. The detailed rules will come into force on September 1 this year

"the detailed provisions in the detailed rules actually provide the basis for the 'five assemblies' in the future manufacturing process, and are legally recognized, which can be recycled into the circulation of auto parts through remanufacture." On August 11, xuhaidong, deputy chief engineer of China Automobile Association, said when talking about the introduction of the detailed rules, "we feel that the entire detailed rules are more comprehensive than the original, and the division of responsibilities is clearer. New regulations such as the remanufacture and utilization of five major assemblies, as well as related regulations such as reusable parts, have been added."

the 100 billion blue ocean market to be activated

data show that in 2019, China's car ownership was 260million, and the theoretical recovery of cars was 9.1 million, but the actual recovery was only 1.95 million, and the recovery rate was obviously insufficient, only 0.75%. With the further improvement of the automobile recycling system, the low recycling rate is expected to be improved

Everbright Securities pointed out in the research report that the core change in the industry at this stage lies in the liberalization of the five assembly remanufacture, which is of great significance to improve the profitability of the automobile disassembly industry; In addition, the strengthening of supervision and the implementation of the producer extension system will also help end-of-life vehicles return to formal channels. It is estimated that the scale of automobile disassembly market will rise from about 28.1 billion yuan/year in 2020 to 84.6 billion yuan/year in 2025; Auto parts manufacturers, recycling service providers and auto disassembly service providers will benefit fully

Everbright Securities believes that the issuance of the detailed rules will further stimulate the vitality of the automobile recycling industry and ensure the healthy development of the industry, which will benefit companies in the whole production chain

after the release of the news from the national development and Reform Commission, the concept stock of automobile disassembly changed in the afternoon today. Tianqi, the leader of automobile disassembly in the whole industrial chain, once hit the daily limit. Huahong technology, a leading enterprise of automobile disassembly and scrap treatment equipment, also rose for a time, but then fell down due to the drag of the market

"From the perspective of the whole life cycle of the automobile, the scrap recycling of the automobile is a very important link, especially in the future development of the sustainable development society and the energy-saving low-carbon society. In general, it is of great significance to the future development of the whole Chinese automobile industry. If the scrap recycling work is done well, it will also play a very positive role in the operation of the whole automobile industry 。” Xuhaidong added

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