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the automobile scrapping subsidy policy is a timely help

2024-09-07

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cars waiting to be dismantled are lined up at a scrapped motor vehicle dismantling company in tongguan district, tongling city, anhui province.
standardize the scrap market and optimize the recycling system
the automobile scrapping subsidy policy is a timely help
◎yan liumeng, reporter chen fang
in the new round of old-for-new subsidy policy issued in august, scrapping and renewal is an important subsidy target. this policy not only brings traffic and growth to the scrap recycling and dismantling industry, but more importantly, the policy guides scrapped cars into standardized scrap recycling and dismantling enterprises, preventing them from entering illegal dismantling channels, which is conducive to promoting the standardized development of the industry.
according to estimates by cui dongshu, secretary general of the china passenger car association, the net increase in scrapped vehicles will reach 7.56 million in 2023. however, data from the china material recycling association shows that the number of scrapped motor vehicles recycled in my country in 2023 is about 5.16 million, which is far lower than the theoretical number of scrapped motor vehicles. it can be inferred that many scrapped vehicles have flowed into the "black market", that is, illegal dismantling channels.
in addition to illegal dismantling, the serious internal competition in the industry is another major "chronic disease". xu junxiang, president of the china material recycling association, told reporters that a large amount of social capital has poured into the recycling and dismantling track of scrapped motor vehicles. the number of qualified dismantling companies has rapidly climbed from 755 in 2019 to 1,453 at the end of 2023, and the growth of dismantling capacity is significantly higher than the growth in the number of scrapped motor vehicles. under the influence of various factors, the scrap automobile recycling industry is facing a difficult situation and serious internal competition.
in response to the two major difficulties faced by the industry, the scrapping and renewal subsidy policy jointly issued by multiple departments this time can be described as "a timely help" - first, it increases business volume and alleviates the "difficulty in collecting cars"; second, it guides the standardized scrapping and dismantling of cars.
the policy effect is reflected in the data. according to the latest data from the ministry of commerce, in the first seven months of this year, 3.509 million scrapped cars were recycled nationwide, a year-on-year increase of 37.4%. in may, june and july, the year-on-year growth rates were 55.6%, 72.9% and 93.7% respectively. this shows that the car scrapping and renewal policy has led to a rapid increase in the amount of scrapped cars recycled.
looking ahead, the number of cars in use will continue to rise, and the scale of car scrapping and recycling will gradually increase. cui dongshu said that since the car market has shown explosive growth since 2009, if the number of scrapped cars is calculated based on 15 years, the number of scrapped cars in 2025 will be about 11.33 million, which is an extremely rapid increase.
in xu junxiang's view, facing such a huge amount of scrapped cars, the industry's transformation towards standardization, refinement and intensification will become a new trend. the standardized operation of the entire industry chain will not only be conducive to energy conservation and emission reduction in the automotive industry, but also reduce the cost of use for car consumers, and will also be conducive to the green and low-carbon development of the entire society.
(source: shanghai securities news)
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