Here's our new monthly column at Rematec, where we bring you a unique perspective on the global remanufacturing industry. Each month, one of our local sales agents will take you on a journey to their home country, providing insights into the latest trends, challenges, and opportunities in the remanufacturing market. This column will highlight key developments and offer valuable information that is particularly relevant for upcoming Rematec events. Our experts on the ground will ensure you're well-prepared with the latest knowledge from their regions.
This month, the spotlight is on China, as we hand the floor to Edward Xu, our dedicated sales agent from the region. Edward will delve into the current state of the remanufacturing market in China, exploring key trends and developments that you won't want to miss.
Could you share some interesting facts and figures about the remanufacturing market in your region, such as its size, potential, and which segments are currently the main focus?
Edward:In 2023, the total sales volume of vehicles in China reached 30.091 million units, with 5.221 million of those being exported. Sales of New Energy vehicles hit 9 million, making up 30% of total sales, and 1.7 million of these were exported. By January 2024, China’s total vehicle fleet had grown to 340 million, of which 20.41 million are New Energy vehicles. With an average vehicle age of 5.5 years, the transaction volume for auto maintenance parts in China reached 800 billion RMB (approximately 102.55 billion Euros) in 2023.
The market for remanufactured automotive parts and products in China has experienced rapid growth. In 2023, total sales of remanufactured products were less than 30 billion RMB (approximately 3.84 billion Euros) but are expected to reach 100 billion RMB (approximately 12.84 billion Euros) by 2030, representing a threefold increase.
The Chinese automotive remanufacturing market demands a wide range of products, including engines, automatic transmissions, electronic steering gears, smart headlights, turbochargers, ECUs, TCUs, automotive sensors, electric vehicle control systems, electric vehicle motors, air conditioning systems, lithium batteries, and other components.
1. The remanufacturing market in China is expected to continue expanding rapidly in the coming years, driven by various factors including government support and increasing environmental awareness.
2. Remanufacturing in China is estimated to save about 60% of energy,70% of metallic materials and 80% air pollution when compared to the manufacturing of new products.
3. Key focuses for the industry include batteries and battery recycling, EVs and sustainability.
What trends and developments do you see in your country and among exhibitors of Rematec?
Edward:
1. EU – China Circular Economy Roadmap: Brussels and Beijing have agreed on a joint roadmap for greater collaboration on remanufacturing, plastics, and battery value chains. The new blueprint defines the actions that both the EU and China will take to implement under the EU-China Memorandum of Understanding on the circular economy. Closer and continuous engagement with China is key to achieving not only our circular economy, but also other shared environmental ambitions.
2. Governmental support: Promotion of remanufacturing, EVs and expanding production capabilities are key goals of the collaboration with the EU.
3. Standardization: Implementation of certification and standards that apply to Chinese and European products.
4. Sustainability: Understanding the carbon footprint of product life cycles to move towards a carbon deficit.
5. Trainee project: Joint education of trainees in EU and China.
What / who should we see at Rematec (innovation, company) according to the latest developments in the country
Edward: These are interesting exhibitors at Rematec Amsterdam:
1. Refone Group
2. E&E Turbo
3. Jrone
Could you share a quote from one of our exhibitors or visitors that particularly stood out to you?
Edward: It's a quote of exhibitor WorldWide Automatic Transmission:
We hope to have more peers from the remanufacturing industry, or traders, especially those from the Southeast Asian， European American and Mexican markets as they are the customers we prefer more and their demand for remanufacturing is also greater.
Is there anything else of value to Rematec?
Edward: These are aspects that are important to mention:
1. Western manufacturing companies can be very direct with China's local remanufacturing enterprises and aftermarket auto parts dealers in China by participating in Rematec Asia. The demand for remanufactured products in the Chinese market can be directly understood.
2. Through the exhibition, they could understand China's current technological capabilities in reman industry and the specific situation of the remanufactured product as well.
3. Overseas companies could understand China's current remanufacturing industrial policy via forums and industry events during the exhibition and understand the construction of the undergoing remanufacturing industrial park in China.
4. European companies can take the advantage of their technology and China's manufacturing cost to cooperate with Chinese companies. In this case, they can produce very cost-effective and high quality remanufactured products to meet customers' needs.
