The State Council recently promulgated the "Measures for the Administration of the Recycling of Waste Vehicles" (hereinafter referred to as the "Measures"). As an upgraded version of the current "Administrative Measures for the Recycling of Scrapped Vehicles", the "Measures" to be implemented on June 1, 2019 is a product that fits well with the times, especially in respect of the "five major assemblies" that are eligible for recycling. The regulations have a clear appeal to strengthen environmental protection and promote the development of circular economy. It is believed that the introduction of the "Measures" will bring green vitality to the development of China's automobile industry chain.
After the car is scrapped, it is not all the waste copper and iron, Many of the parts are actually “reported and not scrapped”. After they are dismantled and reprocessed, they can be reused and renewed in the second spring. Practices at home and abroad have shown that the performance and quality of remanufactured products can reach or exceed the original, but the cost is only 1/4 or even 1/3 of the new product, energy saving is more than 60%, and material consumption is over 70%. In fact, auto parts remanufacturing has become an emerging industry that conforms to the trend of energy conservation and environmental protection. Its market space is expanding and the market prospect is extremely broad.
According to the statistics of the China Automobile Association Remanufacturing Branch. there are currently more than 300 auto parts manufacturing enterprises in China, with an estimated output value of more than 10 billion yuan. The products cover all the parts that can be remanufactured. The industry has also shown a trend of development of the entire industry chain, and a professional old-fashion service company has emerged. Hejian City, Hebei Province and Taolin Town, Lianyungang City, Jiangsu Province, have tens of thousands of people engaged in the recycling of old cars. forming a professional old-fashioned trading market, Professional companies that provide equipment and services for the remanufacturing industry have also entered the market, and the world's only professional e-commerce platform for automotive remanufactured parts has also been put into operation. In addition, the remanufacturing base and the construction of the agglomeration area have gradually formed their respective industrial characteristics.
However, although the domestic auto parts remanufacturing industry has shown a prosperous trend as a sunrise industry, there is still a big gap in comparison with foreign countries. And the bigger gap is still socially aware than the technical level. According to industry insiders, in mature markets in developed countries, consumers believe that remanufactured products have the same quality and high quality as new ones, while Chinese consumers generally believe that remanufacturing is “second-hand goods” with low acceptance. Foreign remanufactured products can be used for parts replacement during the warranty period, and there are no successful cases in China for remanufacturing products for parts replacement during the warranty period. Not only consumers, but many manufacturing companies also have misconceptions about the development of the remanufacturing industry. Some enterprises believe that remanufacturing products will affect the market of new products. They have not seen the far-reaching impact of remanufacturing on corporate sustainable development, nor have they realized that remanufacturing is an inevitable requirement for the development of green recycling economy.
Of course, this low level of social recognition is related not only to the government's lack of positive publicity in remanufacturing, but also to the deviation of some policies. For example, according to the current regulations on the management of end-of-life vehicles, the resources for secondary use of scrapped vehicles after dismantling are very limited. Generally, the bodies are sold at the recycling price of the scrap market. Whether other parts such as tires, seats, auto parts, etc. can be sold There is no demand to see the market. At present, after the car is scrapped, whether it is BMW or hippocampus, Mercedes-Benz or Benben, all of an identity, a price, will be subsidized to the owner according to the price per ton (about 250 yuan, and has not changed for many years). This kind of policy releases the government's lack of information on the secondary use of scrapped cars. which will cause many car owners to have a conflicting complex and lack of enthusiasm for scrapping and recycling vehicles.
Institutional flaws are also manifested in the tax system. It is understood that the general production enterprises need to pay the value-added tax at the rate of 16% when selling the products, and the taxable amount of the value-added tax is the part after the output tax is deducted from the input tax. However, when the remanufacturing industry acquires old parts, it often fails to obtain VAT invoices (because the old parts are mostly from non-profit individuals, and individuals are not qualified to issue invoices), that is, there is no input tax available for deduction, and public opinion enjoys VAT. The benefits of tax deductions. In order to guarantee profits, remanufacturing companies have to pressure the price increase, which will transfer the pressure to the purchase customers. The latter is naturally unwilling to bear, and eventually both buyers and sellers will become negative, so that the entire industry has not been enthusiastic about investment so far.
What is gratifying is that the "Measures" have adjusted the policy orientation, and its implementation is expected to change this unfavorable situation. The Measures not only improve the remanufactured old parts recycling system for auto parts, but also impose requirements on the remanufacturing conditions that can accept the “five major assemblies”, and require remanufactured products to be traced to eliminate consumers’ quality. Security concerns. This has a positive effect on the society's awareness of recycling and recycling of automotive parts and the development of the entire remanufacturing industry.
In the longer term, the automobile recycling industry must obtain sufficient social cognition and a broader market space. In addition to the adjustment and orientation of specific industrial policies, it is also necessary to plan the product life cycle and the entire industry chain. The design, procurement, manufacturing, consumption, recycling and other stages are fully integrated into the green concept. Only in this way can we discover the problems in China's automobile recycling industry and find the root of the problem and the solution to the problem. This industry can truly become a sunrise industry.