News and Information

NEWS CENTER

Company News

Product knowledge

Shortcomings in the development of auto parts

Published time:

2025-07-01

　　The first shortcoming is insufficient recycling volume, hindering the sustainable development of remanufacturing enterprises. Policy restrictions also lead to a relatively small number of auto parts. According to the State Council's Order No. 307, "Measures for the Management of End-of-Life Vehicle Recycling," which is still in effect, the "five major assemblies," including the engine, transmission, and front and rear axles, must be sold to steel enterprises as raw materials. However, in reality, many of these assemblies can be remanufactured. This creates a policy-induced shortage of recycled materials for remanufacturing enterprises.
　　The second shortcoming is the chaotic order in the remanufacturing industry, with legitimate enterprises facing unfair competition from "irregular troops." For regular auto parts remanufacturing enterprises, the price paid to recycling and scrapping enterprises is generally based on the market price of scrap iron. For example, for a Jetta car nearing scrapping, the company pays the owner around 1,000 yuan. However, some small workshops lacking qualifications make huge profits by privately selling assemblies such as engines and transmissions.
Taking a 10-ton scrapped truck as an example, because the "five major assemblies" cannot be sold according to regulations, legitimate enterprises mainly profit from selling scrap steel after dismantling, at most 20,000 yuan. The purchase price cannot exceed 12,000 yuan; otherwise, considering costs and taxes, they will lose money. However, underground dismantling plants can easily purchase at 20,000 yuan or more because illegally selling the "five major assemblies" alone can generate significant profits. For example, a large truck engine can sell for 7,000 yuan, and the rear axle for 8,000 yuan. Therefore, selling a vehicle for 25,000 yuan or more is not difficult.
　　The third shortcoming is the overall low technical level of domestic remanufacturing enterprises and low social recognition of the remanufacturing industry, hindering its further development and growth. Auto parts remanufacturing production requires specific processes: dismantling, cleaning, inspection and classification, remanufacturing or replacement of failed parts, reassembly, and finally, strict testing before entering the market. In fact, because China's auto parts remanufacturing industry started late, equipment is relatively backward, and most importantly, the investment cost is too high, placing a heavy burden on enterprises alone. This leads to a significant gap in technology and quality between domestic remanufacturing and foreign counterparts. A clear example is that even in the pilot demonstration enterprises of auto parts remanufacturing, some still use relatively backward methods of dimensional repair and replacement repair, resulting in a very low remanufacturing rate.
　　Meanwhile, due to traditional consumption concepts and insufficient publicity, the public's understanding of the auto parts remanufacturing industry is insufficient and somewhat biased. The consumer concept of "even if it's half the price, I won't buy used goods" is very common. This leads to insufficient consumer understanding and support for auto remanufacturing, and remanufactured products remain limited in the consumer market.
　　To promote the healthy and orderly development of the auto parts remanufacturing industry, a multi-pronged approach is necessary, comprehensively using legal, economic, and necessary administrative measures. In particular, for the widespread illegal dismantling and scrapping in the industry, administrative law enforcement should be strengthened to resolutely eliminate illegal enterprises and small workshop-style operations.

Tips for Choosing Auto Parts

Further strengthen the supervision of automobile sales behavior, regulate automobile market transactions and competitive behavior