As automobile ownership increases in China, more vehicles are due to be scrapped. As estimated, there were a total of 7.3 million end-of-life vehicles (ELV) in China in 2017, with a scrap rate of 4%, but a mere 30% of them were recycled. In the first eleven months of 2018, 1.469 million ELVs were recycled in China, 15.1% more than in the same period of 2017, with the full-year recycling rate expectedly ranging at 20.0%.
Among 650 to 700 Chinese car dismantling firms for the moment, most are small sized with low annual recycling rate of ELV and scattered resources, though their dismantling networks already take shape. As yet, big players are Shenzhen GEM High-Tech, Jiangsu Huahong Technology, Miracle Automation, Henan Yuguang Gold & Lead, Tus-Sound Environmental Resources and Beijing Capital.
Despite China boasts a huge number of ELVs, its scrap rate remains far lower than the level of 6% to 8% in the developed countries, and a mere 0.5%-1% vehicles out of automobile ownership are recycled compared with a staggering 5%-7% in developed nations. That’s largely because ELV subsidies are directly given to vehicle owners but in small amount, and professional dismantling firms buy their cars at a low price due to weak profitability, which leads to an influx of scrapped cars to the black market which offers a higher price.
The forthcoming new version of the Measures on Management of ELV Recycling, a policy allowing recycling and remanufacturing of “five automotive assemblies” (engine assembly, steering assembly, transmission assembly, front and rear axles, and frame), will promote market growth. With the subsequent issuance of related rules, the ELV and dismantling industry is hopefully to boom, with output value hitting RMB43.43 billion and recycling rate at 24.5% in 2022.
China End-of-Life Vehicle (ELV) and Dismantling Industry Report, 2018-2022 highlights the following:
- Global ELV and dismantling industry (overview, development in main countries, and typical companies);
- China renewable resource industry (policy, status quo, import and export, market segments, and forecast);
- China ELV and dismantling industry (policy, upstream sectors, overview, market size, competitive pattern, and summary and forecast);
- 14 Chinese ELV and dismantling firms (operation, gross margin, ELV business, and development strategy).
1.2 Industry Chain
1.3 Auto Dismantling Process
1.4 Industry Barrier
2. Global ELV& Dismantling Industry
2.2 Development in Major Countries
2.3 Typical Player -- LKQ
3. China Renewable Resource Industry
3.1 Related Policies
3.2 Status Quo
3.3 Import & Export
3.4 Industry Segments
3.4.1 Iron and Steel Scraps
3.4.2 Nonferrous Metal Scraps
3.4.3 Waste Plastics
3.4.4 Waste Paper
3.4.5 Waste Electrical and Electronic Products
3.4.6 End-of-Life Motor Vehicles
3.4.7 Waste Textiles
3.4.8 Scrap Tire
3.4.9 Waste Battery
3.4.10 Waste Glass
3.5 Development Forecast
3.5.1 Iron and Steel Scraps Recycling Trend
3.5.2 Nonferrous Metal Scraps Recycling Trend
3.5.3 Waste Plastics Recycling Trend
3.5.4 Waste Paper Recycling Trend
3.5.5 Waste Electrical and Electronic Products Recycling Trend
3.5.6 End-of-Life Motor Vehicles Recycling Trend
3.5.7 Waste Textiles Recycling Trend
3.5.8 Scrap Tire Recycling Trend
3.5.9 Waste Battery Recycling Trend
3.5.10 Waste Glass Recycling Trend
4. Development Status of China ELV & Dismantling Industry
4.1 Policy Environment
4.2 Downstream Industries
4.2.1 Output and Sales Volume of Automobile
4.2.2 Automobile Ownership
4.3 Development History
4.4 Industry Scale
4.5 Competitive Landscape
4.6 Summary and Forecast
5. Key Players
5.1 Shenzhen GEM High-Tech Co., Ltd.
5.1.3 Revenue Structure
5.1.4 Gross Margin
5.1.5 ELV & Dismantling Business
5.1.6 Development Strategy
5.2 Jiangsu Huahong Technology Co., Ltd.
5.2.3 Revenue Structure
5.2.4 Gross Margin
5.2.5 ELV & Dismantling Business
5.2.6 Development Strategy
5.3 Miracle Automation Engineering Co., Ltd.
5.3.3 Revenue Structure
5.3.4 Gross Margin
5.3.5 ELV & Dismantling Business
5.3.6 Development Strategy
5.4 Henan Yuguang Gold & Lead Co., Ltd.
5.4.3 Revenue Structure
5.4.4 Gross Margin
5.4.5 ELV & Dismantling Business
5.4.6 Development Strategy
5.5 Yechiu Metal Recycling (China) Ltd.
5.5.3 Revenue Structure
5.5.4 Gross Margin
5.5.5 ELV & Dismantling Business
5.5.6 Development Strategy
5.6 Tus-Sound Environmental Resources Co., Ltd.
5.6.3 Revenue Structure
5.6.4 Gross Margin
5.6.5 ELV & Dismantling Business
5.6.6 Development Strategy
5.7 Beijing Capital Co., Ltd.
5.7.3 Revenue Structure
5.7.4 Gross Margin
5.7.5 ELV & Dismantling Business
5.8.1 Shanghai KIMKEY Environmental S&T Co., Ltd.
5.8.2 Shanghai Xinzhuang Auto Dismantling Co., Ltd.
5.8.3 Baosteel Resources Limited
5.8.4 Anhui Win-win Renewable Resources Group
5.8.5 Chongqing Auto Scrap (Group) Co., Ltd.
5.8.6 Shenzhen End-of-Life Vehicle Recycling Co., Ltd.
5.8.7 Shenyang Qiushi End-of-Life Vehicle Recycling Co., Ltd.
- Shenzhen GEM High-Tech Co., Ltd.
- Jiangsu Huahong Technology Co., Ltd.
- Miracle Automation Engineering Co., Ltd.
- Henan Yuguang Gold & Lead Co., Ltd.
- Yechiu Metal Recycling (China) Ltd.
- Tus-Sound Environmental Resources Co., Ltd.
- Beijing Capital Co., Ltd.
- Shanghai KIMKEY Environmental S&T Co., Ltd.
- Shanghai Xinzhuang Auto Dismantling Co., Ltd.
- Baosteel Resources Limited
- Anhui Win-win Renewable Resources Group
- Chongqing Auto Scrap (Group) Co., Ltd.
- Shenzhen End-of-Life Vehicle Recycling Co., Ltd.
- Shenyang Qiushi End-of-Life Vehicle Recycling Co., Ltd.