Policies boost auto dismantling market, but key challenges persist for auto recyclers

Source: Mysteel Jun 19, 2025 11:00

Recent policies, such as the Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-ins, have significantly invigorated the end-of-life vehicle (ELV) recycling and dismantling market.

However, ELV recyclers still frequently report pain points like rising compliance costs, low industry concentration, and significant profit disparities. This article examines the underlying reasons. Rising Compliance Costs Subsidies under policies like the Ministry of Finance and Ministry of Commerce Notice on Issuing the "Management Measures for Subsidy Funds for Scrapping