ERIAResearchProjectReportFY2025,No.1 VehicleDismantling/RecyclingSurveyinResponsetotheTransformationoftheAutomobileIndustryinASEAN Editedby FusanoriIwasakiReoKawamuraMichikazuKojimaChunjieYang HirokiKanekoShigefumiOkumuraYumikaYoshinaga VehicleDismantling/RecyclingSurveyinResponsetotheTransformationoftheAutomobileIndustryinASEAN EconomicResearchInstituteforASEANandEastAsia(ERIA)SentralSenayanII6thFloor JalanAsiaAfrikaNo.8,GeloraBungKarnoSenayan,JakartaPusat12710 Indonesia ©EconomicResearchInstituteforASEANandEastAsia,2025ERIAResearchProjectReportFY2025,No.1 PublishedinMay2025 Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedinanyformbyanymeanselectronicormechanicalwithoutpriorwrittennoticetoandpermissionfromERIA. Thefindings,interpretations,conclusions,andviewsexpressedintheirrespectivechaptersareentirelythoseoftheauthor/sanddonotreflecttheviewsandpoliciesoftheEconomicResearchInstituteforASEANandEastAsia,itsGoverningBoard,AcademicAdvisoryCouncilortheinstitutionsandgovernmentstheyrepresent.Anyerrorincontentorcitationintherespectivechaptersisthesoleresponsibilityoftheauthors. Materialinthispublicationmaybefreelyquotedorreprintedwithproperacknowledgement. KPMGAZSAisamemberfirmoftheKPMGglobalorganisationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited(KPMGInternational).KPMGInternationaldoesnotprovideservicestoclients.AllmemberfirmsareindependentandhavenoauthoritytoobligateorbindKPMGInternationaloranyothermemberfirmvis-à-visthirdparties,nordoesKPMGInternationalhaveanysuchauthoritytoobligateorbindanymemberfirm. ThisreportsummarisesthefindingsofasurveyconductedbyERIAandKPMGAZSA.WhileERIAandKPMGAZSAstrivetocompilethisreportinatimelymannerbasedoninformationavailableatthetimeofthesurvey,thecontentofthisreportmaynotaddressthecircumstancesofspecificindividualsororganisationsnotincludedinthesurvey.Additionally,ERIAandKPMGAZSAdonotguaranteetheaccuracyorcompletenessoftheinformationatthetimethatitwasreceivedorthereafter.ERIAandKPMGAZSAassumesnodirectnorindirectresponsibilityfortheuseofthisreportbyanythirdpartywhoviewsorobtainsacopyofit. TheKPMGnameandlogoaretrademarksusedunderlicencebytheindependentmemberfirmsoftheKPMGglobalorganisation. Acknowledgements ThisresearchprojectissupportedbytheMinistryoftheEnvironment,Japan,fromtheFY2023SupplementaryBudget.ThisreportwasjointlydraftedbytheKPMGAZSAsurveyteamandEconomicResearchInstituteforASEANandEastAsia(ERIA)surveyteam,incorporatingcontributors'inputs.ExpertsfromASEANMemberStatesreviewedandrevisedtheresearchresultsanddraftreportintheexpertmeetings(AnnexI). ListofProjectMembers ERIASurveyTeam MrReoKawamura,DirectorforEnvironmentalPolicyandtheRKC-MPDMrFusanoriIwasaki,ResearchFellow MrMichikazuKojima,SeniorResearchFellowonEnvironmentalIssues KPMGAZSASurveyTeam DrShigefumiOkumura,Director MrTeruakiTanaka,AssociateDirectorMrHirokiKaneko,Manager MsYumikaYoshinaga,SeniorAssociateMrYangChunjie,SeniorAssociate Contributors MrKoMatsuura,MinistryoftheEnvironment,JapanMsKyokoSakieda,MinistryoftheEnvironment,JapanMrKwanVoonLee,Director,CarMedic MrKwanKianHeng,Director,CarMedic MrJonaldMorales,TechnicalResearcher,Environweave MrGabrielAllana,ResearchAssistant,PrimaryConsultant,Environweave ExpertsfromASEANMemberStates MrEkoAdjiBuwono,NationalProjectManager,ENTREVProject(EnhancingReadinessfortheTransitiontoElectricVehicleinIndonesia) Ts.SitiMaisarahMohdPisal,SeniorManager,AftermarketSustainability,MalaysiaAutomotive,RoboticsandIoTInstitute(MARii) MsMelissaCardenas,PrimaryConsultant,Environweave Assoc.Prof.PalaniBalaya,DepartmentofMechanicalEngineering,NationalUniversityofSingapore MsRachanidaNitipathanapirak,VicePresidentofStrategicDepartment,ThailandAutomotiveInstitute Prof.HuynhTrungHai,Dean,SchoolofMaterialsScienceandEngineering,HanoiUniversityofScienceandTechnology Contents Acknowledgmentsiii ListofProjectMembersiv ListofFiguresvi ListofTablesviii ListofAbbreviationsix ExecutiveSummaryxi Chapter1Background,Objective,andMethodoftheStudy1 Chapter2CurrentStatusofEnd-of-lifeVehicleRecyclingin2 SelectedASEANMemberStates Chapter3CurrentChallengesinEnd-of-lifeVehicleRecycling64 Chapter4RecommendationsforProperProcessingofEnd-of-81 lifeVehiclesandDevelopmentofRelevantLegislation AnnexIResultsofExpertMeetings88 AnnexIIEnd-of-lifeVehiclePolicyandRegulationsinSelected89 ASEANMemberStates References145 ListofFigures Figure2.1 AutomotiveVehicleSalesinSelectedASEANMemberStates, 2 2004–2024 Figure2.2 ElectricVehicleSalesinSelectedASEANMemberStates,2020– 3 2024 Figure2.3 MotorVehiclesinIndonesia,2015–2022 6 Figure2.4 DisassemblingandRecyclingProcessofELVinIndonesia 11 Figure2.5 JunkyardImages,Indonesia 12 Figure2.6 ScrapAuctionWebsite,IBID 13 Figure2.7 StorageofAbandonedCarsbyKualaLumpurCityHall 17 Figure2.8 AdvertisementforOne-stopCentreforAbandonedCarsby 18 AmpangJayaMunicipalCouncil Figure2.9 AuthorisedAutomotiveTreatmentFacilityImagesfromCarMedic 20 Figure2.10 InformalSectorDismantlerandUsedPartSellerImages, 21 Malaysia Figure2.11 Authori