Huge opportunity for automotive parts remanufacturing  

The global automotive remanufacturing market, now worth EUR 44 billion, has the potential to double with four years, according to management consulting firm McKinsey.

A prime example of remanufacturing success is Audi, which saved over 230 tonnes of steel, 85 tonnes of aluminium and 80 tonnes of copper in 2024, as well as 5 000 electrical control units and 5 000 electric motors. This was achieved by reviving powertrains at an advanced facility in Ingolstadt, Bavaria.

More than 7.7 million used Audi powertrains have been remanufactured by the Volkswagen Group’s spare parts business. It also serves other brands in the group, according to Pavel Elizarov, regulatory affairs officer at Traton Group, a Volkswagen subsidiary.

He shared his insights at the recent IARC conference in Hamburg. Read the full article in our latest issue >>

No standard yet

‘There ought to be an EU standard for industrially remanufactured parts,’ he asserts. ‘Why? Because it would help wider acceptance of such parts by clearly drawing a line between parts officially handled by the producers and independent garages. The latter are often marketed as remanufactured parts.’

Elizarov laments that not all customers are happy with remanufactured parts. ‘Some people don’t trust them so a clear, preferably international, standard could help convince them they are as good as new.’

Growing revenue stream

Remanufacturing can drive local business. ‘For the smaller players to capitalise, however, incentives are key because the costs per unit can be much higher for remanufactured parts than for new parts.’

Authorised treatment facilities across Germany rake in an annual revenue upwards of EUR 250 million, reports the German Environment Agency.

Meanwhile, Volvo’s dedicated remanufacturing division reuses up to 85% of an original component. ‘We handle around 45 000 parts per year and they are often 50% cheaper than making new parts,’ notes Lars Mårtensson, environment and Innovation director at Volvo Reman. ‘Thanks to my team’s efforts, nearly 10 000 high voltage batteries were repaired and reused in 2024.’