A trillion-dollar industry, sharing new ideas for circular economy | Hangzhou Parts Association visits the benchmark dismantling factory "Jian De Products" of Baturu

According to the prediction of China Automotive Research Institute, under the backdrop of the "carbon neutrality" goal and the continuous deepening of circular economy policies, in 2025, remanufacturing will account for 8% of the aftermarket repair market value, approximately 200 billion yuan. The remanufacturing of automotive components in China may create a new and huge market. 

Recently, a research team led by He Zijun, the president of Hangzhou Auto Parts Chamber of Commerce, Zhu Hui, the executive president, and Yu Rongtuan, the secretary-general, including enterprises such as Minche Supply Chain Company and Hangzhou Tucon Auto Parts Company, visited the Baturu benchmark dismantling plant - Jiande Property. They focused on the efficient circulation of recycled parts and explored new ideas for industrial recycling. 

At the meeting, Cheng Quan, the general manager of Jiande Products and the vice president of the Chamber of Commerce, introduced that the company's predecessor was a metal recycling company under the Materials Bureau in the 1990s. During the wave of state-owned enterprise reform, it successfully transformed into a private enterprise due to operating losses. With the advancement of the national "automobile下乡" policy， the vehicle scrapping reached its first peak， and the output value of the company's dismantled vehicle parts has exceeded 10 million yuan. 

As the scale of enterprises continues to expand, the management of dismantled vehicle parts has gradually revealed many problems and difficulties such as overcapacity and the difficulty in tracing the circulation of used parts. 

Based on this, Chaonian Auto Parts broke away from the traditional mindset and decisively adopted the digital solution for dismantling plants provided by Baturu. This solution covers aspects such as the refined dismantling of used vehicles, standardized warehouse management, and circulation of reusable parts. It has established a traceability system for reusable parts, significantly enhancing the company's ability to align with the market and the efficiency and accuracy of inventory management. Eventually, this led to a significant increase in performance. Currently, the company's inventory has reached 120,000 pieces. 

As an industrial internet enterprise deeply involved in the automotive aftermarket, Baturu has comprehensively developed its automotive recycling business in recent years. By leveraging the digital infrastructure capabilities such as data, systems, supply chains, and operational capabilities accumulated and refined over the past decade from the automotive parts trading, it has constructed a full-chain closed-loop system from "vehicle recycling - dismantling - circulation of recycled parts". This system efficiently connects dismantling plants, recycled part merchants, and end repair shops, assisting dismantling plants in "receiving vehicles and selling spare parts", providing compliant vehicle sources for recycled part merchants, expanding their sales channels based on standardized recycled parts, and creating a better recycled part procurement experience for repair shops. Together, they jointly promote the upgrading of the industrial cycle. 

Last year, Baturu served as the platform for the upgrading of recycled parts industry in Huadu District of Guangzhou City. It promoted the standardization, normalization and large-scale expansion of the regional recycled parts industry. Currently, it has facilitated the standardization of recycled parts businesses of major mainstream car brands, and has widely linked resources of national scrap vehicle dismantling factories, accelerating the digitalization process of the automotive recycling industry. 

In the future, Baturu will continue to enhance its industry infrastructure capabilities, establish more digital benchmark enterprises in various specialized fields, and drive the transformation and upgrading of the entire industrial chain.