The Reman Dragon Rising

Joe Kripli, Global Business Enterprise Leader Showtime! As far as the remanufacturing sector is concerned, China is a thriving market that simply cannot be ignored. And while other regions across the globe continue to struggle, China is poised for remarkable growth. Gone are the days when Chinese manufacturers were probably best known for the product copies that emerged from China’s borders. Today, China is singing a different tune – and it could be music to reman ears.

We’ll all get a chance to hear it first hand at the Remanufacturing International Forum, to be held this spring in Hangzhou, China. (www.remanchinaforum.com)

A recipe for opportunity?

For those unsure about the scale of the opportunity, consider this:

• Within China there is a collective fleet of approximately 78 million vehicles owned
• The average vehicle age is only four years
• Domestic production is estimated at 17 million new vehicles per year
• Current predictions show the annual production rate increasing to 30 million vehicles by 2016
• In the near future, China’s local vehicle production will be on a par with the number of vehicles manufactured across the rest of the world

You can do the math for what these numbers add up to for the remanufacturing business. Right now, many Chinese buyers may not even know what an ‘old car’ is - but they soon will! With an enormous aftermarket demand looming on the Chinese horizon, these are exciting times for our industry.

To address this market opportunity, WABCO is taking a proactive approach, and WABCO Reman Solutions is already working to plan for the incredible opportunities this market presents with the local team.

What are your observations and thoughts on the Chinese market? Drop me a line and let me know!

See you in Hangzhou!

Joe

If you’d like to share your views on the future of remanufacturing contact Joe directly at joe.kripli@wabco-reman.com