· 420 billion yuan car dismantling market to be discovered

In 2013, China's car ownership exceeded 137 million units, a compound growth rate of 15.81% compared with 57.97 million units in 2007. Car scrap rates (discards/holds) in developed countries average 6%. Considering that China is experiencing a period of rapid growth in automobile consumption, although the current automobile scrap rate does not reach this level, according to the 2013 “Motor Vehicle Compulsory Scrap Standards Regulations”, the service life of passengers and trucks is generally 10 In -15 years, the cars that began to be used around 2000 have entered the end of life. Based on this, it is estimated that the number of car scraps in China will be around 2 million in 2013, and will grow at an average annual rate of 20% in the next decade.

In June 2001, the State Council promulgated the “Measures for the Management of Scrap Automobile Recycling”. This is the first time that China has systematically standardized the development of the automobile recycling and dismantling industry. It clearly stipulates that after the vehicle meets the scrapping standards, it must go to the public security department to cancel the vehicle information. And handed over to the relevant qualified enterprises for recycling and dismantling. On the basis of the previous policy support, the automobile dismantling industry has formed a relatively complete industrial chain.

The dismantling process of scrapped cars is mainly divided into two steps: step-by-step disassembly and vehicle breakdown. When the main purpose of parts recycling and remanufacturing is to use step-by-step disassembly; when the main purpose of recycling waste materials is to use, the whole vehicle is broken. Automobiles that have been scrapped according to national standards have a high recycling and remanufacturing value. China's automobile dismantling plants mainly adopt a step-by-step dismantling process.

After dismantling the scrapped car, a large amount of renewable resources can be obtained, including steel (five major assemblies), non-ferrous metals (lead, copper, aluminum, tin), precious metals (platinum), glass, engineering plastics, leather, etc., all of which are renewable materials; Accessories (generators, motors, lamp glass, doors and windows), electronic components (sensors, ECUs, actuators), standard parts (doors and windows, fasteners, connectors, etc.) are all renewable parts.

The dismantled product can be directly sold not only as waste materials, but also when it reaches certain conditions, thereby re-manufacturing, thereby increasing the utilization value. The five major assemblies, parts and components, and automotive electronics can be remanufactured. For example, every time a Steyr engine is remanufactured, only 20% of the energy of the new machine needs to be produced, saving 1600 degrees and reducing carbon dioxide emissions by 13-17 kg.

In 2012, the recycling amount of scrapped motor vehicles in China was 1,147,800, and the sales amount was 7.852 billion yuan. Among them, the recycling amount of scrapped cars was 600,400, accounting for only 30% of the theoretical scrap. The recycling volume of motor vehicles increased by 0.5% year-on-year, and the growth rate decreased significantly. This was mainly due to the suspension of the automobile trade-in policy at the end of 2012. In addition, the total sales of the industry decreased by 5.3% year-on-year, mainly due to the fall in scrap steel prices. Due to the cumbersome formal recycling channels and low recycling prices, a large number of scrapped vehicles flow into the secondary market and informal recycling companies.

In addition, as of the end of 2012, the number of scrapped car recycling and dismantling enterprises reached 522, with total assets of 10.265 billion yuan.

In 2012, the recovery rate of China's scrapped cars was only 30%, far lower than that of the United States, Germany and Japan. In the United States, for example, the annual car scrap is more than 14 million, and the recycling volume is more than 12 million. The recovery rate is about 83%. In February 2006, the “Recycling Technology Policy for Automotive Products” jointly issued by the National Development and Reform Commission, the Ministry of Science and Technology and the Ministry of Environmental Protection planned the recycling process of scrapped automobiles.

The Measures for the Administration of Recycling of Scrapped Cars, which was implemented in June 2001, stipulates that the “five major assemblies” dismantled by scrapped automobile recycling enterprises shall not be remanufactured, and other parts may be remanufactured. In March 2008, the National Development and Reform Commission issued the “Administrative Measures for the Remanufacturing of Auto Parts”, which allowed 14 parts and components remanufacturing pilot companies to recycle five types of engines, transmissions, generators, steering gears and starters for remanufacturing.

The remanufacturing utilization rate of auto parts available in developed countries has reached about 35%, and the remanufacturing utilization rate of available parts for dismantling in China is very low, basically selling scrap metal, and the sales of second-hand parts of auto dismantling enterprises in 2012. Revenue only accounts for 5% of total income.

In general, the value of remanufacturing of auto parts is more than eight times the value of scrap metal. In July 2010, the State Council promulgated the “Regulations on the Management of Recycling and Dismantling of Scrapped Motor Vehicles (Draft for Comment)”, allowing the “Five Major Assembly” to be remanufactured. If the policy can be implemented, the remanufacturing rate will be greatly improved. Solve the capacity of the market. Assuming that the remanufacturing rate reaches 20% and the component value is six times the non-metallic value, the sales revenue contributed by the parts will reach 25.2 billion yuan, and the total market capacity will reach 42 billion yuan.

In 2013, China’s car sales were 21.98 million, more than 10 times that of the 2.09 million in 2000. It is conservatively assumed that China's future car sales will remain at 20 million units, and the annual scrap will be 20 million units. The size of the dismantling market will also increase by 10 times to reach RMB 220 billion.

In addition, in 2012, there were 3 enterprises with more than 10,000 vehicles scrapped, more than 5,000 vehicles with less than 20 companies, more than 70% of the less than 1,000 vehicles, and more than 30% of the less than 500 vehicles.

The Regulations on the Management of Recycling and Dismantling of Scrapped Motor Vehicles (Draft for Comment) has been brewing for nearly four years. With the arrival of the peak period of automobile scrapping, the "Regulations" are ready to come. By allowing the “five major assemblies” to be remanufactured, it will undoubtedly increase the resource utilization rate of scrapped vehicles. At the same time, it has improved the supervision and management framework, divided the responsibilities of the government, public security, industry and commerce, and environmental protection departments, and clarified the legal responsibilities of violators. It is conducive to promoting the flow of scrapped cars to formal recycling and dismantling enterprises.

Governments at all levels are actively promoting the intensive development of the automotive dismantling industry. Beginning in 2009, the Ministry of Commerce and the Ministry of Finance took the lead in piloting the demonstration project for the upgrading and rebuilding of scrapped car recycling and dismantling enterprises. Some local governments gave the pilot enterprises 5 million yuan and no more than 50% of the registered capital. As of the end of 2012, about 40% of recycling and dismantling companies have completed or are undergoing technological transformation focusing on clean environment, safe production, resource conservation, technological advancement and modern management. At the same time, the government encourages some enterprises with capital and technical strength to optimize and reorganize with existing recycling and dismantling enterprises through mergers, holdings, shareholdings, equipment investment, etc., to strengthen cooperation and inject new vitality into the development of the industry. In order to promote enterprises to become bigger and stronger, solve problems such as small and scattered enterprises, low efficiency and disorderly competition, many scrap car recycling and dismantling enterprises in Tianjin, Chengdu and other regions have been integrated through government guidance and market operation, and scale benefits gradually emerged. .

The rectification of “Yellow Label Vehicle” is expected to become a catalyst for the short-term rapid development of the automobile dismantling industry. As of the end of 2012, the number of “Yellow Label Vehicles” in the country was 14.514 million, accounting for 13.4% of the total car ownership. The top five provinces are Guangdong, Shandong, Hebei, Henan and Jiangsu, with a total of 1.687 million, 1.113 million, 1.01 million, 975,000, and 787,000.

The State Council issued the "Air Pollution Prevention and Control Action Plan" in September 2013, which included the "Yellow Label Vehicle" remediation policy and objectives. All regions generally began to increase the elimination of yellow-label vehicles from 2014, and eliminated all yellow-label vehicles by 2017. . Most provinces and cities have subsidized different degrees of yellow label vehicles that have been phased out in advance, and promoted the flow of yellow-label vehicles into the formal dismantling channels.

According to the “Yellow Label Vehicle” rectification policy of each province and city, an average of 3.625 million vehicles will be eliminated each year from 2014 to 2017. If 50% of the flow goes to the regular dismantling plant, that is, 1.8 million vehicles will be dismantled, then the market space for auto dismantling brought by the “Yellow Label Vehicle” will be three times that of the current market.

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