There are 78 millions vehicles running in Japan and about 7 million new registrations yearly. Vehicles stay on the road for an average of 12 years, producing 5 million ELVs annually.

More than 1.5 million Japanese ELVs are shipped overseas annually, mostly to countries with no automotive recycling system, which creates a significant environmental risk.

Japanese consumers have on average had less money to spend in recent years, which has meant good sales for Japanese recyclers. The cost of a recycled part in the country is less than 50 per cent the cost of OEM parts. From April to September 2010, the government also had a program in place to take older vehicles off the road, which was also good news for recyclers.

In Japan, about 50 of the largest auto recyclers are represented by the Japanese Automotive Recycling Association (JARA). JARA also includes some unique members such as a vehicle carriage company and derelict vehicle management company. The association’s goal is to promote the relationship between recyclers and end users. JARA companies took in between 5,000- 30,000 vehicles each as a result of the government’s vehicle policy.

When Japanese recyclers take in a vehicle, they first inspect the vehicle, collect any necessary information and register it into the computer. They then drain fluids and inspect and clean usable parts. At the end of the process, parts are registered in a system that connects all of Japan as well as some overseas entities.

After the parts are catalogued what remains of the vehicle is processed and then crushed for scrap metal.

Overall, the Japanese recycling market has been doing well in recent years. There is still lots of room to grow however; currently recycled parts represents about five per cent of the Japanese parts market, which is still only a sixth of the usage seen in countries such as the US.

Japanese recyclers are also making waves on the international scene. JARA recently won a World Energy Globe Award for their efforts to help Fiji with enacting an effective auto recycling program. It is among the most prestigious environmental awards in the world and the ceremony was broadcast to nearly 3 billion household.

This article appeared in the January 2011 issue of Canadian Auto Recyclers magazine.