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People's Daily Online>>China Business

Risk brews as recycling ratio of scrapped cars low in China

By Wang Yanwen (Beijing Daily)

16:55, March 09, 2012

Edited and translated by People's Daily Online

China's auto consumption has experienced a "blowout" lasting for more than two years after the international financial crisis, which is affected by the stimulus package including trading in old motor vehicles for new service, providing subsidies for rural residents to purchase motor vehicles, and halving the purchase tax on automobiles.

At present, China has 78 million cars, ranking second largest in the world. With the growth of automobile consumption, the total amount of scrap cars also increases dramatically.

Automobile recycling, if done properly, can totally achieve the effect of "turning waste into treasure". More than 90 percent of automotive parts which are steel or nonferrous materials can be recycled and utilized, and the cost of remanufactured engines is only 40 percent to 50 percent of that of new ones.

However, China's automobile recycling, dismantling and re-manufacturing industry face many potential obstructions.

According to a survey, the number of cars which have been recycled and dismantled accounts for only 56 percent of the total number of scrapped cars, while nearly 40 percent of scrapped cars inflow into towns and self-employed individuals. The large number of scrapped cars and reassembled cars potentially endangers public traffic safety.


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