Market Trends of Used Auto Parts
Nowadays, a new trend of re-manufacturing auto parts has created new avenues for auto market industry with every player, small or big, foraying into this uncharted territory due to immense business potential the industry offers. The re-manufacturing process involves re-manning the worn part in such a way to give it a brand new finish. Most of the parts really does not wear out and can be easily reused. The process involves inspection and quality checks for any damage and reusability, thoroughly cleaning the reusable parts and giving it a new finish as well as repairing and surfacing and these done in well-treated plants ensure top performance without sacrificing the quality. Wherever necessary, old bearings are replaced with old ones. Moreover, re-manufactured parts come with original equipment quality seals. Stringent testing and quality control throughout the whole process ensure that remanufactured parts meet original specification standards. In many cases, these parts may even exceed original quality specifications and have much greater finish. This is possible as re-manufacturing firms know the exact cause of failure and extent of damage and is well equipped with fine expertise to deal with any problem.
It is quite interesting to note that over 90 percent of the parts of the automobile can be recovered and recycled reducing 40% of the cost- in fact quite too irresistible figures. Though western countries including the United States and Canada have well-established remanufacturing industries, there is a new trend brewing up with developing countries like China keen to tap the immense potential re-manufacturing offers. China is promoting auto parts re-manufacturing business in a major way as was evident from the 2008 Beijing International Automotive Exhibition. A pilot project for recycling and rebuilding auto parts has been launched in China by the National Development and Reform Commission. This is following the recent announcement of “Administrative Methods on Auto Parts Re-manufacturing” in early March, 2008. Fourteen manufacturers including FAW and Shanghai-Volkswagen have signed letters of commitment regarding remanufacturing auto parts. These enlisted companies are at present required to focus on five products namely, engines, transmissions, electric generators, starters and converters. With millions of units of vehicles nationwide in US and European countries and fast growing automobile industry in Asian countries, especially Asian giants China and India expecting to have more vehicles nationwide, market trends of re-manufactured auto parts is very much encouraging with enormous market for auto parts.
References:




