Car industry says OK to auto parts recycling

Shanghai. March 25 (Gasgoo.com) China has recently launched a tentative program to recycle and reuse auto parts. The country is determined to increase the number of reprocessed auto parts as well as to urge innovation in recycling and rebuilding auto parts, reported CCTV (China Central Television) this week.

Three automakers and 11 auto parts manufacturers in the country so far have jumped on the recycling bandwagon, signing deals of commitment to the effort, according to national media news reports.

The recycling effort will first focus on a few products such as motors, transmissions and electric generators, as regulated by the National Development and Reform Commission. The cost of recycled parts is estimated at about 60% that of new ones.

By 2010, the market demand for auto parts across the country is expected to grow to RMB 65 billion ($9.3 billion), and RMB 3.8 billion of them is for recovered parts, which currently are just valued at RMB 700 million.

The China Association of Automobile Manufacturers said that China produced 8.88 million motor vehicles in 2007 and is expected to churn out 4 million vehicles each year starting in 2010.