Automobile Recycling Business – 3 Ways Pandemic Has Changed It

Before Covid-19 Pandemic hit the world, the automobile recycling business was doing exceptionally well. But with the pandemic came significant restrictions and fear for the unknown.

So, automobile recycling companies had to change their working environment to ensure they observed the safety protocols.

Some decided to close their businesses due to the shortages foreseen in the available vehicle inventory. However, other auto recyclers kept their hope alive and continued working amidst the pandemic.

But, as the pandemic continued to take hold of many regions, we witnessed complete shutdowns of economic activities worldwide.

Since most automobile businesses shut down, there was a decreased supply of available new vehicle parts. So, the older, used cars began holding more value due to the higher demand for their parts.

By the end of 2020, the finishing for new cars was at its highest. But, when it came to the selling of new automobiles, the story was different. Recent car sales were reported to be at their lowest since the year 2012. This caused a significant impact on the automobile recycling industry.

Such declining trends instilled a lot of fear amongst the automotive industry players. Most people were uncertain of what to expect out of their automobile recycling businesses. Others dreaded whether they would have an income in the months ahead.

Pandemic Has Changed The Automobile Recycling Business – How?

In short, the pandemic changed the automobile recycling business in the following ways:

Industrial Shift to eCommerce

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With the Covid-19 pandemic, many industries shifted to e-commerce. The automobile recycling business was not left out; most recyclers are now investing in eCommerce activities.

Since consumers had come to terms with the Covid-19 restrictions, they’re embracing online vehicle purchasing now, more than ever before. In fact, e-commerce is what continues to boost the automotive industry.

However, managing eCommerce marketplace platforms calls for expertise. Automotive businesses require competent personnel to manage the different online products.

They also need to continue monitoring competition across the widespread automotive marketplaces. Fortunately, the automotive e-commerce market continues to grow amidst the ongoing pandemic.

Also Read: Importance Of Duramax Performance Components in Automobile Engineering

Increased Selling and Buying of Junk Cars

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Technological advancement and the increased internet use for selling and buying used cars are now trending. This has impacted the auto recycling industry, especially in the season of the Covid-19 pandemic.

Junk cars consist of several reusable parts. Most buyers are now looking for different spare parts that they can reuse. Examples include engine, fuel pump, starter, battery, and transmission.

So, when it comes to locating and acquiring junk cars, you may ask yourself a question like, ‘where is a Toyota dealership near me?

You can locate convenient car dealerships online by visiting their website. You then schedule the service you need.

The online channels continue to help automotive recyclers. They’re especially beneficial now that most consumers hesitate to leave their home areas to interact with others due to social isolation.

So, how are the recycling companies using the internet to acquire junk vehicles?

  • Some automobile companies list down various locations on their websites, where they’ll take junk vehicles and pay cash.
  • Other companies use platforms on their websites where individual customers and insurance companies can ask for quotes to recycle their junk cars.

These are some of the strategies that increased sales during the pandemic. Many customers buy and sell automobiles from trusted online marketplaces instead of traveling to in-person dealers.

Also Read: 5 Most Trusted Automobile Sites To Buy And Sell A Car

Higher Interest in Electric Vehicles

Automobile Higher Interest in Electric Vehicles

Despite the covid-19 pandemic that affected the automotive industry, the experience differs for the electric vehicle market.Notably, there were increased new registrations for the electric cars than their Internal Combustion Engine (ICE) counterparts.

During the lockdowns, there have been added efforts to lower CO2 emissions. From an environmental perspective, this has led to the reflection on the preferability of electric over traditional vehicles.

Several analysts say that a section of buyers could end up preferring electric vehicles over diesel-powered or gasoline vehicles. But, the overall trend for electric vehicles will mainly depend on government schemes to promote this initiative.

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What Does the Future Hold for the Automobile Recycling Business?

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Those in the automobile recycling businesses should be prepared to accept some situations as they are. Part of the changes that resulted from the pandemic might be here to stay.

However, manufacturers and dealers must be creative by researching flexible and innovative approaches to regain stability in sales.

As people embrace digitization, automotive recyclers need to find creative ways to boost significant online sales. Seamless digitization is one viable strategy that may help automotive companies to attract market shares in the coming years.

Putting more efforts towards digitization may lead to improved digital accessibility and integration of technology. Vehicle features like the on-screen controls may attract more consumers.

Other than these changes, companies and car dealerships will have to think about giving incentives on discounts, reduced interest rates, and other offers. Such will most likely give potential buyers more reasons to buy vehicles amidst the challenging times.

With the pandemic’s lockdown and social distancing, it may also be an opportunity to do more research on autonomous vehicles.

Automobile industries should improve and invest in supply chains, machine learning tools, and extensive data analysis. Such will ensure the efficiency of supply chains.

These measures will also help to secure the future of the automobile industry. Thus, businesses will not suffer from sudden disruptions like the one presented by covid-19.

Such are also actions that will help to control the effects presented by the pandemic. The measures will also ensure a faster revival of industrial production after the significant impact of covid-19.

The shift to e-commerce, integrated digitization, and high interest in electric vehicles are some of the ongoing changes. With the current work-from-home standards, the future could bring in changes to the present supply chain model and the automobile industry as a whole.


Before the covid-19 pandemic, the automobile recycling industry had some challenges. The challenges were mainly due to international trading that impacted some recycling items. But, that occurred from time to time.

Now, with the pandemic, it’s evident that the biggest challenge for the automobile recycling business is the lack of customer traffic in most locations. This is what contributes to the reduced car sales, especially for new vehicles.

With local governments putting restrictions, many in the auto recycling industry have had to stop part of their business activities. This contributes to a dramatic decline in the availability of scrap metals to produce new vehicles.

From the look of things, the used parts will gain more value, and not much new manufacturing will occur. So, the parts scrapped from the metal are now resold and put back into cars.

Indeed, the lessons gained from the hard pandemic times will give way for further research and new ideas in the automobile recycling business. The same could set new standards for the industry’s security in the coming years.

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Images by Gary Scott, Free stock photos, Mikes-Photography, Pexels and Friedrich Frühling

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