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Repeal of Warranty Restriction Spurs New Era for Remanufacturing in China

Duxes 7th China Remanufacturing Summit 2017

June 28-29, 2017 · Crowne Plaza Beijing Chaoyang U-Town, China

The NDRC (NATIONAL DEVELOPMENT AND REFORM COMMISSION) reman pilot programs, and Notice on the Technology Quality Control Standards for Remanufacturing Units (trial draft) [Reform No. 191], were repealed by an NDRC order which took effect on January 1st 2018.

The reman pilot programs authorized a select quota of qualified auto remanufacturing enterprises to conduct reman business on a trial basis. Due to growth in demand, non-pilot companies have entered the reman market as well, rendering the pilot model largely obsolete. In its place, new industry- wide supervisory rules have been drafted, and will be released in the near future, providing comprehensive regulation for the entire reman industry.

The other major component repealed by the NRDC order, the Notice, had prohibited the use of remanufactured products within the warranty period, preventing enterprises from accessing cheaper remanufactured parts at that stage. The removal of this restriction should bolster growth for spare parts remanufacturing across China.

These dramatic policy shifts indicate a more receptive environment for the reman industry in China. Wayne Yao, head of Duxes Reman and Aftermarket Research, believes that the NDRC order and upcoming reman industry supervisory rules are crucial early steps on the path to greater liberalization within the remanufacturing industry, a welcome development for auto OEMs, parts suppliers and remanufacturers.

March, 2018
Shanghai, China
By Duxes Reman & Aftermarket Research

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