Automobile is a pillar industry in China, and its sustainable development is an important factor to realize the sustained, rapid and healthy development of the whole national economy. The recycling of scrapped cars is an important part of the circular economy of the automobile industry. Doing a good job in the recycling of scrapped cars can not only bring good economic benefits, but also bring obvious environmental and social benefits. It is to ensure the rational use of resources and realize the automobile The important way of green and sustainable development of the industry is also an indispensable important part of realizing my country's automobile power strategy and an inevitable choice to promote the construction of ecological civilization.

1. policy environment

In recent years, the Chinese government attaches great importance to the recycling of scrapped vehicles and has issued a series of relevant policies and regulations, which provide strong guidance and support for the development of the industry. Mainly include the following aspects:

(1) Administrative Measures for Recycling of Scrapped Motor Vehicles

The "Administrative Measures for the Recycling of Scrapped Motor Vehicles" (hereinafter referred to as the "Measures"), which came into effect on May 1, 2019, is the highest-level management regulations for the recycling of scrapped motor vehicles in my country. "Revision and improvement. The measures comprehensively stipulate the recycling management of scrapped motor vehicles from the aspects of standardizing the main body of recycling, strengthening the supervision responsibility, and strengthening the information construction, aiming to promote the standardized recycling and dismantling, resource utilization and harmless disposal of scrapped motor vehicles, protect the ecological environment and maintain public safety.

The "Measures" clarified the qualification conditions and application procedures for scrapped motor vehicle recycling enterprises, canceled the original regional and quantitative restrictions, and allowed qualified enterprises to apply for scrapped motor vehicle recycling business, increasing market players and competitiveness. At the same time, the Measures also stipulate the operating specifications and safety measures that scrapped motor vehicle recycling companies should abide by, including establishing and improving internal management systems, dismantling and processing in accordance with technical specifications, using unified identification marks to disassemble parts, and establishing a sound quality traceability system Wait.

In addition, the "measures" also emphasizes the important role of information construction in the recycling management of scrapped motor vehicles, requiring public security organs at all levels, industrial and commercial administrative departments, quality and technical supervision departments and other relevant departments to timely input relevant information into the national unified platform, and realize information sharing and data exchange through the platform. At the same time, the "Measures" also encourage localities to establish local or cross-regional information service platforms for scrapped motor vehicles to provide market entities with services such as information inquiry, transaction matching, and logistics distribution.

(2) Interim Measures for the Administration of Remanufacturing of Auto Parts

The Interim Measures for the Administration of Remanufacturing of Auto Parts (hereinafter referred to as the Interim Measures), which came into effect on January 1, 2021, is the first special management regulation for the remanufacturing of auto parts in China, and is an upgrade and improvement of the Pilot Implementation Plan for Remanufacturing of Auto Parts issued in 2015. The Interim Measures comprehensively stipulate the remanufacturing of auto parts from the aspects of standardizing the main body of remanufacturing, clarifying remanufactured products, and strengthening quality supervision, aiming to promote the healthy development of the auto parts remanufacturing industry, improve resource utilization efficiency, and protect the ecology Environment to meet market demand.

The "Interim Measures" clarified the qualification conditions and application procedures for auto parts remanufacturing enterprises, canceled the original pilot restrictions, allowed eligible enterprises to apply for auto parts remanufacturing business, and expanded the market entity and coverage. At the same time, the "Interim Measures" also stipulates the operation specifications and safety measures that auto parts remanufacturing enterprises should abide by, including establishing and improving the internal management system, carrying out the remanufacturing process in accordance with technical standards, remanufacturing products with unified identification marks, and establishing and improving the quality traceability system.

In addition, the Interim Measures also emphasized the important role of quality supervision in the remanufacturing of auto parts, requiring quality and technical supervision departments at all levels, industrial and commercial administrative departments and other relevant departments to strengthen the supervision and inspection of auto parts remanufacturing enterprises and products, and realize information sharing and data exchange through the national unified platform. At the same time, the "Interim Measures" also encourage localities to establish regional or cross-regional auto parts remanufacturing information service platforms to provide market entities with information inquiry, transaction matching, logistics and distribution services.

(3) Notice on Issuing the Pilot Implementation Plan for the Extension of Producer Responsibility for Automotive Products

On June 9, 2021, the Ministry of industry and information technology, the Ministry of science and technology, the Ministry of Finance and the Ministry of Commerce jointly issued the notice on printing and distributing the pilot implementation plan for the extension of producer responsibility of automobile products (hereinafter referred to as the notice). The notice takes production enterprises as the main body, and carries out pilot projects around automobile production enterprises and their automobile products with good working foundation, wide coverage and large demonstration role, Explore the establishment of automobile product producer responsibility extension management system.

The ''Notice'' pointed out that by 2023, the standard recycling level of scrapped vehicles will be significantly improved, forming a group of replicable and popularized automobile manufacturers as the main body of responsibility for the recycling of scrapped vehicles; the utilization level of renewable resources of scrapped vehicles has steadily improved, and the comprehensive resources The utilization rate reaches 75%; the green supply chain system for automobiles is complete, and the recycling rate of automobiles reaches 95%, and the utilization rate of recycled raw materials for key components is not less than 5%.

In order to achieve this goal, the "Notice" clearly will take the establishment of a recycling system, the development of comprehensive utilization of resources, the implementation of green supply chain management, and the strengthening of information disclosure as the implementation direction. Among them, the recycling system is for automobile manufacturers to cooperate with scrapped automobile recycling enterprises through independent recycling, entrusted recycling or joint recycling to establish a scrapped automobile recycling network to improve recycling efficiency and quality. Comprehensive utilization of resources means that automobile manufacturers cooperate with auto parts remanufacturing enterprises and renewable resource utilization enterprises through independent utilization, entrusted utilization or joint utilization to promote the efficient utilization of resources such as scrapped automobile dismantling parts and renewable raw materials. Green supply chain management is for automobile manufacturers to guide suppliers to improve the recyclable utilization rate of automobile products and the proportion of recycled raw materials by formulating green procurement standards, establishing green evaluation system and implementing green incentive mechanism. Information disclosure is for automobile manufacturers to disclose information about the recycling of scrapped cars to the public by establishing an information publicity platform, issuing information announcements, and accepting social supervision, so as to increase transparency and trust.

2. market size

According to data from the Shangpu Consulting Group, in 2022, my country will have 0.319 billion cars, of which 0.232 billion will be private cars, accounting for 72.7 percent. It is estimated that by the end of 2023, the total number of cars in my country will reach about 0.34 billion, and private cars will exceed 0.25 billion, accounting for about 73.5 percent. The number of new energy vehicles in my country has also shown a rapid growth trend, reaching 13.1 million in 2022, accounting for 4.1 percent of the total number of vehicles. According to the "Motor Vehicle Scrap Standard", the service life of passenger cars is 15 years, and that of passenger and freight transport vehicles is 10 years. According to this estimate, China's scrapped cars will reach 20 million in 2022 and 22 million in 2023, with a huge market.

At the same time, with the development of China's economy and society and the improvement of people's living standards, the demand of Chinese consumers for the upgrading of automobile products is also increasing. According to data from Shangpu Consulting Group, my country's second-hand car transaction volume reached 23 million in 2022, an increase of 18.6 percent year-on-year, of which inter-individual transactions accounted for 70%. Some of these used cars are old cars that have been eliminated for sale because they have exceeded their service life or do not meet environmental protection standards. If these old cars are not effectively recycled, they will cause serious pollution and waste to the environment.

Therefore, it is an urgent task to strengthen the recycling of scrapped cars and old cars. According to the data of Shangpu Consulting Group, the number of scrapped cars recycled and dismantled in China will reach 15 million in 2022, an increase of 25 percent over the same period last year, of which 10 million will be recycled and dismantled through regular channels, accounting for 66.7 percent. For the whole year of 2023, it is estimated that the recycling and dismantling volume will reach 18 million vehicles, of which 12 million vehicles will be recycled and dismantled through regular channels, accounting for 66.7 per cent. This shows that China's scrap car recycling and dismantling industry is gradually standardized, intensive, specialized and information-based.

3. technical level

Scrap vehicle recycling and dismantling technology refers to the technology of classifying and dismantling scrapped vehicles and dividing them into reusable parts, renewable resources and non-reusable waste. The technology involves many fields and links, including dismantling process, equipment and facilities, quality control, safety management, etc.

At present, China's scrap car recycling and dismantling technology has made some progress and development. On the one hand, in terms of dismantling technology, my country has formed a dismantling mode based on mechanization and semi-automation, supplemented by manual, which can realize the rapid, efficient and safe dismantling of scrapped cars. On the other hand, in terms of equipment and facilities, our country already has a certain degree of independent research and development and manufacturing capabilities, and can produce dismantling equipment and tools that meet the needs of the domestic market, such as hydraulic shears, hydraulic tongs, electric screwdrivers, electric drills, etc. At the same time, China has also introduced some foreign advanced dismantling equipment and technology, such as automatic dismantling line, intelligent identification system, environmental protection processing system and so on.

In spite of this, there are still some shortcomings and problems in the recycling and dismantling technology of scrapped cars in China. On the one hand, in terms of technical standards, my country currently does not have unified technical standards and specifications for the recycling and dismantling of scrapped vehicles. The level and quality of dismantling technology in various regions and enterprises are uneven, resulting in low dismantling efficiency and quality, and resources. The utilization rate is not high, and the environmental pollution is serious. On the other hand, in terms of technological innovation, my country currently lacks continuous investment and research and development in scrap car recycling and dismantling technology, lack of core technologies and patents, and lack of high-end talents and technical teams, resulting in a large gap between the technical level and the international advanced level.

4. competition pattern

The competitive landscape of the scrap car recycling industry is mainly determined by two aspects: one is the number and scale of market players; the other is the competitive strategy and ability of market players.

According to data from Shangpu Consulting Group, as of the end of 2022, there were about 4000 scrap car recycling companies in my country, of which about 1200 have formal qualifications. Some of these companies are companies specializing in the recycling and dismantling of scrapped cars, and some are companies that concurrently operate other car-related businesses, such as car repair, car sales, and car leasing. These enterprises vary in size and strength, some are large enterprises operating across regions or provinces, and some are small and medium-sized enterprises operating only in their own regions or markets.

In terms of competitive strategies and capabilities, scrap car recycling companies mainly enhance their competitive advantages through the following aspects:

(1) Strengthen communication and cooperation with government departments, industry associations, social organizations and other relevant parties, actively participate in policy formulation and industry norms, and strive for more policy support and market access.

(2) Strengthen cooperation alliances with upstream and downstream partners such as automobile manufacturers, auto parts remanufacturing companies, and renewable resource utilization companies, build a stable supply chain and value chain, improve resource utilization efficiency and reduce operating costs.

(3) Strengthen the research and development and innovation of scrap vehicle recycling and dismantling technology, introduce or develop advanced dismantling equipment and tools, improve dismantling efficiency and quality, and reduce environmental pollution and safety risks.

(4) Strengthen the collection and analysis of information on the recycling and dismantling of scrapped vehicles, establish a sound information management system and service platform, and provide services such as information inquiry, transaction matching, logistics and distribution to meet market demand and customer demand.

(5) Strengthen the construction and publicity of the brand of scrap car recycling and dismantling, improve the visibility and credibility of enterprises and products, and establish a good social image and reputation.

5. development opportunity

As an important part of the circular economy of the automobile industry, the end-of-life automobile recycling industry has broad prospects and opportunities for development. Mainly reflected in the following aspects:

(1) Policy support. The Chinese government attaches great importance to the recycling of scrapped cars and has issued a series of relevant policies and regulations to provide strong guidance and support for the development of the industry. In particular, the latest policy documents, such as the measures, the interim measures and the notice, provide more market access opportunities for scrapped automobile recycling enterprises, provide more product scope and quality assurance for auto parts remanufacturing enterprises, and provide more responsibility and cooperation space for automobile production enterprises. These policies will help promote the standardization, intensification, specialization and informatization of the scrap car recycling industry, and promote the healthy development of the industry.

(2) Market demand. With the continuous growth of China's car ownership, the number of scrapped cars will continue to increase, and the market scale is huge. At the same time, with the increasing demand of Chinese consumers for the upgrading of automobile products, the number of old cars will also continue to increase, and the market potential is huge. If these scrapped cars and old cars can be effectively recycled, it will save a lot of resources, reduce a lot of pollution and create a lot of value for our country. These market demands will provide strong impetus and broad space for the scrap car recycling industry.

(3) Technological progress. Scrap car recycling and dismantling technology is a key factor in determining the level of development and quality of the industry. With the continuous development and innovation of science and technology, dismantling equipment and tools, intelligent identification systems, environmental protection treatment systems and other related technologies are also constantly improved and perfected, which can realize the rapid, efficient, safe and harmless dismantling of scrapped cars. At the same time, with the wide application of new technologies such as the Internet, the Internet of Things, big data, and artificial intelligence, information construction is also continuously strengthened and deepened, which can realize the comprehensive collection, analysis, sharing and exchange of scrap car recycling and dismantling information. These technological advances will provide strong support and protection for the scrap car recycling industry.

(4) Social identity. Recycling and utilization of scrapped vehicles is an important way to realize the rational utilization of resources, realize the green and sustainable development of the automobile industry, and realize the construction of ecological civilization. With the development of China's economy and society and the improvement of people's living standards, our society's awareness of resource conservation and environmental protection is also increasing. More and more people realize the importance and necessity of the recycling of scrapped cars, and are willing to participate and support them. These social identities will provide a good atmosphere and conditions for the scrap car recycling industry.

6. development challenges

Although the scrap car recycling industry has broad development prospects and opportunities, it also faces some challenges and risks. Mainly reflected in the following aspects:

(1) Policy implementation. Although the Chinese government has issued a series of relevant policies and regulations to provide strong guidance and support for the development of the industry, there are still some difficulties and problems in the specific implementation and implementation process. If the policy publicity is not in place, the market subject and the public have insufficient understanding of the policy; the policy implementation is not strict, which leads to the market subject and the public's insufficient compliance with the policy; the policy coordination is not smooth, resulting in insufficient communication and cooperation between departments at all levels. These problems will affect the effectiveness and efficiency of the policy, and restrict the standardization and health of the industry.

(2) Market competition. With the development and growth of the scrap car recycling industry, the market competition will become increasingly fierce. On the one hand, competition in formal channels will intensify, and various scrap car recycling companies will compete for market share and customer resources through price, quality, and service. On the other hand, competition from informal channels will also exist. Some unqualified or illegal scrap car recycling entities will attract market demand and customer demand through low-cost, fast, and flexible methods. These competitions will bring pressure and challenges to scrap car recycling enterprises, requiring them to continuously improve their competitive strategies and capabilities.

(3) Technological innovation. Scrap car recycling and dismantling technology is a key factor in determining the level of development and quality of the industry. With the continuous development and innovation of science and technology, dismantling technology is also constantly updated and changed, requiring scrap car recycling enterprises to continue to follow up and adapt. At the same time, with the continuous changes in market demand and customer demand, dismantling technology also requires scrap car recycling companies to continue to innovate and improve. These requirements put forward higher requirements and challenges for the technological innovation ability of scrap automobile recycling enterprises.

(4) Social supervision. The recycling of scrapped cars involves many fields and links, involving many stakeholders, and its process and results are concerned and supervised by all sectors of society. Especially in the information age, any link or detail may be magnified or exposed, causing public opinion pressure or trust crisis. Therefore, scrapped automobile recycling enterprises must strictly abide by relevant laws and regulations, standardize their own business behavior, ensure their own business quality, actively fulfill their own social responsibilities, and actively accept social supervision.

7. Suggestions and Countermeasures

In order to promote the healthy development of the scrap car recycling industry, this paper puts forward the following suggestions and countermeasures:

(1) Strengthen policy implementation and implementation. Departments at all levels should strengthen the publicity and education of relevant policies and regulations, improve the understanding and recognition of policies by market entities and the public; strengthen the supervision and inspection of relevant policies and regulations, and improve the compliance and implementation of policies by market entities and the public; strengthen The society of relevant policies and regulations

Coordinate and improve, resolve conflicts and contradictions between policies in a timely manner, and improve policy synergy and effectiveness.

(2) Strengthen market competition and cooperation. Scrap automobile recycling enterprises should establish a correct view of market competition, not only to actively participate in market competition, improve their own competitive strategies and capabilities, and strive for more market share and customer resources; but also to actively carry out market cooperation, establish stable cooperative relations and alliances, improve resource utilization efficiency and reduce operating costs. At the same time, scrap automobile recycling enterprises should also establish a correct concept of market supervision, not only to abide by market rules, standardize their own business behavior, and ensure their own business quality, but also to support market supervision and actively cooperate with the supervision and inspection of relevant departments. eliminate hidden dangers and risks in the market in a timely manner.

(3) Strengthen technological research and development and innovation. Scrap vehicle recycling enterprises should increase investment in research and development and innovation of scrap vehicle recycling and dismantling technology, introduce or develop advanced dismantling equipment and tools, improve dismantling efficiency and quality, and reduce environmental pollution and safety risks. At the same time, scrap car recycling companies should also increase investment in the collection and analysis of scrap car recycling and dismantling information, establish a complete information management system and service platform, and provide information inquiry, transaction matching, logistics and distribution services to meet market demand and customers demand. In addition, scrap automobile recycling enterprises should also strengthen cooperation and exchanges with scientific research institutes, universities, industry associations and other relevant institutions, learn from advanced technical experience and cases at home and abroad, train high-end talents and technical teams, and improve their own technical level and innovation ability.

(4) Strengthen social responsibility and image. Scrap car recycling companies should recognize their important role and responsibility in resource conservation and environmental protection, actively fulfill their social responsibilities, actively participate in social welfare activities, and make contributions to society. At the same time, scrap car recycling companies should also recognize their own significance and value in shaping a good social image, actively build their own brand image, actively disclose their own business information, accept social supervision, and build confidence for the society.