If you’ve been in the automotive aftermarket for a period of time, you’ve probably heard the phrase “circular economy.” You can almost imagine it in your mind—reusing raw materials from a component and putting it back into the lifecycle of that component. But creating a circular economy in the automotive aftermarket consists of more than the reuse of raw materials, and it will take all segments of the aftermarket to ensure sustainability is realized in the lifecycle of an auto part. 

Let’s look at what factors are driving the automotive aftermarket toward a more circular economy and how aftermarket companies can contribute to this new way of doing business.  

Supply Chain Need 

In the aftermarket, a lot of what we do is dictated by the OEMs. Does an OE part have additional capabilities not already on the market? The aftermarket hits the “easy” button in finding a solution for that. With the OEMs and the aftermarket relying on each other, the trickle-down effect happens as investors and the federal government put pressure on OEMs to lower emissions and create more sustainable, greener manufacturing processes.  

According to the EPA, automotive OEMs generate about five percent of industrial waste globally. In the US, a large percent of the 65 million tons of metal, plastic, glass and textile waste produced per year is attributed to mobility and vehicles at end-of-life. That’s why OEMs like Ford are looking to use 20% sustainable materials in their vehicles from 2021-2025. Volkswagen has committed to halving the carbon emissions per vehicle in all its plants, and Toyota has declared that it will seek a 30% reduction in the global average carbon emissions from its new vehicles, compared to 2010 levels. 

All of this affects the automotive aftermarket, as OE parts will be responsible for helping manufacturers achieve these goals, and replacement parts will be expected to uphold these objectives, at times exceeding OE standards.  

A Look at Circularity  

In the general automotive industry today, there are four main areas in which circularity practices are developing at a rapid rate, according to Mobility Outlook.  

First, remanufacturing, where used components are repaired and then deployed in used cars or sold in the aftermarket. 

Second recycling, where raw materials extracted from used components are utilized in new vehicles and other industries. 

Third, product life extension, where vehicle parts are proactively serviced before they develop any faults, which extends their useful life.  

And, finally, sustainable material use, in which environmentally friendly materials are incorporated into auto parts. 

What Your Company Can Do 

Already in the automotive aftermarket, many companies have implemented circularity practices or are starting to do so to open the doors to a more sustainable future—with a smaller carbon footprint.  

In manufacturing, for example, companies are reducing waste by using computers to create prototypes and test various models. And, initial designs for auto parts can be created on-demand thanks to new procedures such as 3D printing, cutting down on over-production as well as emissions, Forbes reported. Data in manufacturing also helps streamline operations and ensures waste is minimized.  

In distribution, artificial intelligence and IT can be used to implement the most energy-efficient routes for delivery vehicles. Analytics platforms can also be applied to data sets to reveal which parts need to be ordered when and in what quantities, allowing distributors to have the part for their customers when they need it.   

Lastly, there are a variety of ways the maintenance and service sector in the automotive aftermarket can contribute to the circularity of the industry. Often, this sector is pointed to as one of the highest polluters in automotive, according to the EPA. In working with industry partners, such as parts suppliers, repair shops can recycle a plethora of materials such as batteries, oil and oil filters, engine components and so much more.  

Data has the potential to take the repair shop a step further in helping vehicle sustainability with the use of vehicle performance and customer behavior data. Together with machine learning, repair shops can learn how certain vehicles’ components can be kept in use longer, allowing for reduced emissions and waste.  

Brought to you by Motorcar Parts of America.