Green manufacturing forces the automotive industry to accelerate its transformation.

In response to global environmental issues, China's automotive industry is addressing them by developing new energy vehicles, accelerating the comprehensive utilization of resources, and promoting the development of the car-sharing economy.

On the eve of this year's World Environment Day, two well-known Chinese automotive companies partnered with two German automotive companies in the field of new energy vehicles.

On June 1, Jianghuai Automobile and Volkswagen (China) announced the establishment of a joint venture to produce new energy vehicles. On the same day, BAIC Group and Daimler AG also signed a framework agreement to strengthen cooperation in the field of new energy vehicles.

Driven by both policy and market forces, in 2016, China's production and sales of new energy vehicles reached 517,000 and 507,000 units respectively, ranking first in the world for two consecutive years. The vast market and government support have attracted international automotive giants to collaborate with Chinese companies in the field of new energy vehicles.

Analysts believe that developing new energy vehicles is an urgent task to promote the transformation and upgrading of China's automotive industry, seize the high ground in international competition, and achieve leapfrog development. It is also an important measure to help China achieve energy conservation, emission reduction, and green development while cultivating new momentum for economic growth.

While promoting the accelerated development of new energy vehicles, China's automotive industry is also accelerating the recycling of key automotive components such as engines and has drawn on some experiences from the remanufacturing sector in developed Western countries.

The engine is the heart of a car. In the past, engines produced by Chinese automotive companies would become scrap metal after being discarded. Now, old engines can be transformed into valuable resources—after being restored through a professional remanufacturing process, they can once again become the heart of a car.

China First Automobile Group Corporation (FAW) is one of the first pilot units for remanufacturing automotive parts in China. The engine remanufacturing project at its subsidiary FAW Jiefang's Xichai remanufacturing base has now achieved mass production. Recently, reporters visited this base and were greeted by rusty old engines in the warehouse. It is understood that these old engines were recovered through Xichai's marketing network and have been transformed into Xichai remanufactured engines marked with 'remanufactured' signs at the base's export area after undergoing a professional remanufacturing process.

Data shows that since its production began six years ago, FAW Xichai's remanufacturing base has delivered over 5,000 remanufactured engines to the market, with a recovered product added value exceeding 125 million yuan, recycling 1,800 tons of steel, saving 7 million kilowatt-hours of electricity, and reducing carbon dioxide emissions by over 300 tons.

Jiang Boming, head of FAW Jiefang's Xichai remanufacturing base, stated that compared to newly manufactured engine products, Xichai's remanufactured engine products not only ensure equivalent quality and performance but also save 60% on energy consumption and about 50% on material costs while reducing atmospheric pollutant emissions by over 80%. At the same time, remanufactured engines enjoy the same three guarantees as new machines.

FAW Xichai's remanufacturing base is just a microcosm of resource recycling in China's automotive industry. In recent years, with the in-depth implementation of 'Made in China 2025' and its supporting policies, China's automotive industry is gradually bidding farewell to past production methods as a large number of intelligent green factories emerge.

While promoting green manufacturing in products and manufacturing processes, China is also making efforts in the automotive industry's aftermarket by actively guiding and promoting the car-sharing economy to encourage green travel: from well-known ride-hailing platforms like 'Didi Chuxing' to the emerging trend of car-sharing rentals; these new methods not only facilitate people's travel but also minimize automobile exhaust emissions and energy consumption.

In terms of policy, the 'Automotive Industry Medium- and Long-Term Development Plan' recently released by three ministries including the Ministry of Industry and Information Technology has also set clear goals for green manufacturing and green development in China's automotive industry. By 2020, the average fuel consumption for new passenger cars should be reduced to 5.0 liters per hundred kilometers; fuel consumption for energy-saving vehicles should drop below 4.5 liters per hundred kilometers; and commercial vehicles should approach international advanced levels.