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The auto dismantling industry embraces the internet, a multi-billion dollar market is about to open
Release time:
06 May,2015
Recently, Dazhou Sanqiang Scrap Car Recycling and Dismantling Co., Ltd. has actively integrated into the Internet platform and launched an online scrap car recycling business. This move signifies that the scrap car industry is entering a new "Internet+" business model of online ordering and offline logistics.
Recently, Dazhou Sanqiang Scrap Car Recycling and Dismantling Co., Ltd. has actively integrated into the Internet platform, launching online scrap car recycling business. This move means that the scrap car industry is beginning to enter the "Internet +" new business model of online ordering and offline logistics.
According to the company's responsible person, as long as the car owner searches and enters the "Dazhou Sanqiang Automobile" website online, and then clicks "Online Recycling", they can enter the online trading platform for scrap cars. After filling in and submitting the relevant data on the platform, the scrap car owner only needs to wait for the company staff to come to their door for service and handle the deregistration of scrapped vehicles for free. "The scrap car industry sounds like a very traditional industry, but after we introduced Internet technology, scrap cars can be handled without leaving home; after placing an online order, you just wait for the company to pay!" said the person in charge.
Currently, there is a large number of cars in China, and the peak of scrapping is approaching. In 2014, China's car ownership had exceeded 154 million. From the perspective of the amount of scrapped cars, China has begun to gradually enter the peak period of car scrapping, and the amount of scrapped cars in recent years has exceeded 5 million per year. From the perspective of car sales, after 2000, China's automobile industry entered a stage of explosive growth in demand, and new car sales grew rapidly. Cars usually have a scrappage period of 10-15 years, and China will enter the peak period of motor vehicle scrapping after 2015.
"Recycling difficulties" is a pain point plaguing China's scrap car industry. From the perspective of the amount of scrapped cars in China, China has begun to gradually enter the peak period of car scrapping. From 2010 to 2013, the number of cars deregistered in China was approximately 3.64 million, 4.48 million, 4.68 million, and 5.35 million, respectively. However, the recycling volume from 2010 to 2013 was approximately more than 2 million, more than 1 million, 600,040, and 1.37 million, respectively. Although the amount of scrapped cars in China has maintained rapid growth, the overall car scrapping rate is still relatively low, averaging only about 4% of the total number of cars, significantly lower than the 6-8% level in developed countries, and the recycling rate is only 0.5%-1% of the total number of cars, far lower than the 5%-7% level in developed countries.
The automobile dismantling industry will "embrace" the Internet and enter a period of high growth. With the automobile dismantling/parts remanufacturing industry accelerating its entry into the Internet, the Internet business platform with O2O characteristics will make the future sales channels of remanufactured parts smoother, greatly opening up the customer base of the automobile dismantling/parts remanufacturing product market, improving the added value of the industry, and enabling the future output value of the automobile dismantling industry to reach the hundreds of billions level.
Three models for automobile dismantling/parts remanufacturing enterprises to "embrace" the Internet.
First, The B2B/C self-operated network platform model of European Callparts has a good foundation and rapid future development space. Companies actively involved in this model should be closely monitored;
Second, The Internet model mainly based on online trading platforms. Connecting numerous dismantling enterprises/remanufacturing enterprises/individuals and other parts suppliers with numerous repair enterprises/car users and other customers through online platforms;
Third, The "trade-in for remanufactured" online platform built by automobile dismantling/remanufacturing enterprises guarantees raw materials and expands the consumer group. These three models are all based on O2O characteristics; otherwise, they cannot develop.
Relevant targets: Currently, A-share listed companies involved in the scrap car dismantling and processing industry can be divided into three categories: equipment companies, recycling and processing companies, and resource companies. Equipment companies include Huahong Technology and Tianqi Co., Ltd. (automobile dismantling platform, leading manufacturer of large-scale metal processing equipment); recycling and processing companies include Qinling Cement, GEM (involved in scrap car recycling and processing business), and Tianqi Co., Ltd. (cooperates with German ALBA on scrap car fine dismantling and remanufacturing); resource companies include Yuguang Gold Lead (leading domestic lead-acid battery recycling company) and Yiqiu Resources (leading domestic recycled aluminum company). These companies may all be involved in the O2O business model in the future.
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