Greetings
In 2025, the automotive industry and automotive recycling industries will experience a significant turning point due to increased environmental awareness and technological innovation. With the spread of electric vehicles (EVs) and the advancement of vehicle technology, the number of end-of-life vehicles is expected to decline to approximately 2.6 million, the lowest level in the past decade. Coupled with the impact of the weak yen, the procurement market for end-of-life vehicles has seen soaring prices, creating an increasingly challenging environment for the automotive recycling industry.
At the same time, the enactment of the Act on Resource Circulation Promotion for Recycling Businesses and the acceleration of efforts to achieve carbon neutrality both domestically and internationally have created new responsibilities and growth opportunities for industry. In the automotive recycling parts industry, the expansion of the inventory sharing network, driven by the "All Recycle Parts Network" initiative, has improved supply capabilities. However, with the improvement in supply capabilities, competition among companies has intensified. To remain the preferred choice for customers, it is essential to conduct detailed information gathering and market analysis to respond to the diversifying needs.
Furthermore, with the advancement of vehicle technology, it is crucial to strengthen information collaboration with automotive manufacturers and arterial industries and to build a system that utilizes vehicle data to improve the quality and compatibility of reused parts. In this context, JARA will advance the following initiatives as a leading entity in the industry.
1. Enhancing the Recycled Parts Market
To further enhance the recycled parts market, we will promote the "All Recycle Parts Network" initiative and expand the inventory sharing network. This will create an environment capable of responding to diverse customer needs, improving convenience and service quality. Additionally, we will accelerate system investments to develop a system infrastructure that can collect and utilize detailed vehicle and parts information. This will not only enhance the quality and compatibility of reused parts but also achieve efficient inventory management and prompt service delivery. Furthermore, by strengthening information collaboration with automotive manufacturers and arterial industries and utilizing vehicle and parts data in the market, we aim to enhance the competitiveness of the entire industry. These initiatives will serve as the foundation supporting the development of the industry as a whole and enable the provision of highly reliable services to customers.
2. Securing End-of-Life VehiclesAs a foundation supporting the stable supply of recycled parts, we will strengthen procurement activities for end-of-life vehicles. JARA will deepen collaboration with arterial industries and the used car industry to build an efficient procurement system. Additionally, by activating information-sharing mechanisms utilizing digital technology, we aim to improve the accuracy and efficiency of procurement activities and incorporate more end-of-life vehicles into the resource circulation system. This will contribute to the stability and sustainable development of the entire industry.
3. Realization of a Sustainable Circular SocietyJARA is committed to efficiently connecting parts, materials, and data to maximize the value of end-of-life vehicles. Through this initiative, the entire industry will play a role in realizing a sustainable circular society, and as the national platform for end-of-life vehicles, we will build a model that creates new value for society.
JARA will continue to face challenges while balancing environmental conservation and technological innovation, with an eye on the future of industry. We are determined to work together with industry stakeholders to create a better future. We sincerely ask for your continued support and cooperation.
March 13th, 2025,
Yoichi Tabuchi, President
JARA Corporation(Japan Automotive Recyclers Alliance)