"The concept of 'remanufacturing green wealth' is truly eye-opening," said Zhang Boshun, secretary-general of the China-ASIA Market Trade Committee. He emphasized that remanufacturing auto parts plays a vital role in helping the automotive industry build a circular economy. This idea first gained attention during the 2007 China Auto Parts Industry Annual Conference and the Second China Automotive Summit Forum held in Wuhan from September 1st to 3rd. At the event, officials from the China Association of Automobile Manufacturers introduced the concept of "Remanufacturing and Creating Green Wealth" for the first time.
At the 2007 China Automotive Industry Development International Forum in Tianjin, Dong Yang, executive vice president and secretary general of the China Association of Automobile Manufacturers, reiterated that remanufacturing auto parts is a key path toward sustainable development in the automotive sector. With China's growing car ownership, statistics from the China National Automobile Association show that by 2010, the number of vehicles is expected to reach 55 million—representing an average annual growth of 14.81%. If 5% to 7% of these vehicles are retired each year, they could provide a substantial supply of used parts for remanufacturing.
Senior government officials have also shown strong support for remanufacturing. In 2006 and 2007, Vice Premier Zeng Peiyan repeatedly called for the development of the remanufacturing industry, suggesting it be used as a pilot program to explore best practices and improve regulations. The Ministry of Communications issued Order No. 7 in 2006, allowing repair companies to use remanufactured parts. Meanwhile, the National Development and Reform Commission tasked the China Association of Automobile Manufacturers with researching the development of steam parts remanufacturing.
The concept of remanufacturing has started gaining traction among Chinese companies. One of the early pioneers was Baike (Changshu) Motor Co., Ltd., which established a generator plant in Shenzhen in 1986 and later opened a remanufacturing supermarket in Beijing in 2006. It also launched the first online platform for auto parts remanufacturing. Other notable players include Jinan CNHTC Fuqiang Power, a Sino-foreign joint venture established in 1994, and companies like Shanghai Volkswagen Rebjet Powertrain and Caterpillar Remanufacturing Industry (Shanghai).
Globally, the remanufacturing industry was valued at over $100 billion in 2005, with the U.S. being the largest market, exceeding $75 billion. Auto parts such as engines, transmissions, and starters are widely remanufactured. For example, Volkswagen has rebuilt over 7.48 million engines since 1947, saving significant amounts of steel and aluminum while reducing carbon emissions. A remanufactured engine from Shanghai Volkswagen costs about 55% of a new one.
Despite its potential, remanufacturing in China still faces several challenges. Zhang Boshun pointed out that public perception remains a major obstacle, with some people viewing remanufactured products as inferior. Additionally, regulatory barriers make it difficult for remanufacturers to access used parts. According to the State Council's Decree No. 307, certain vehicle components must be sold as scrap metal, limiting the availability of parts for reuse.
Another issue is the bureaucratic process involved in replacing a remanufactured engine. As Zhang noted, changing the engine number at traffic management departments can be complicated. He stressed that revising relevant laws and regulations will be crucial to accelerating the growth of the remanufacturing industry. With continued policy support and increased consumer awareness, the future of auto parts remanufacturing in China looks promising.
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