New Zealand’s automotive industry is an important and growing driver of the country’s economy. It is estimated that the industry’s contribution to GDP is around NZ$5.5 billion annually, and about 54,500 people are employed by it. This industry is responsible for the production, distribution and sale of cars, SUVs, trucks and other automotive vehicles.

The number of cars on the road in New Zealand has been increasing steadily, resulting in more cars reaching the end of their useful life. This has led to the growth of the car-recycling industry, which deals with the reuse, repurposing and recycling of end-of-life vehicles (ELVs). This article will explore the impact of car-recycling on New Zealand’s automotive industry, and ways that the nation can make the most of this sector.

What is Car-recycling?

Car-recycling is the process of reusing and repurposing end-of-life vehicles (ELVs). Cars that have reached the end of their useful life are stripped of parts that are still in good condition and then sent to car-recycling facilities. At the facility, the car is broken down into component materials, such as metal, rubber, glass and plastics, which are then reused in the production of new cars or in other industries.

Car-recycling is an important industry that helps reduce the environmental impact of producing new cars. In New Zealand, this sector is regulated by the Motor Vehicle Dismantlers and Recyclers Association (MVDRA).

Benefits of Car-recycling for the Automotive Industry

Car-recycling provides a number of benefits to New Zealand’s automotive industry, including:

  • Reduced costs and improved efficiency of production – Car-recycling allows automotive companies to reduce their production costs by using recycled materials instead of new ones. This also helps to improve the efficiency of the production process.
  • Reduced environmental impact – Automotive companies are able to reduce their environmental impact by using recycled materials instead of producing new ones.
  • Improved public perception – Automotive companies that adopt car-recycling can benefit from an improved public perception of their brand, as they are seen to be taking a proactive approach to protecting the environment.

Challenges of Car-recycling

Car-recycling is not without its challenges, however. These include:

  • Cost – Car-recycling can be a costly process, due to the cost of labour, equipment and transportation. This makes it difficult for some automotive companies to adopt car-recycling initiatives.
  • Time consuming – The process of breaking down and recycling a car can be time consuming, as it involves a lot of manual labour.
  • Safety concerns – The safety of workers at car-recycling facilities is a major concern, as they are handling hazardous materials on a daily basis.

Despite these challenges, car-recycling can still bring a number of benefits to New Zealand’s automotive industry. It can help to reduce costs and improve efficiency, while also improving public perception of automotive companies by demonstrating their commitment to protecting the environment.


Car-recycling has the potential to be a valuable asset to New Zealand’s automotive industry. While there are challenges associated with this process, it can help reduce costs and improve efficiency, as well as improve public perception of automotive companies. It is therefore important that automotive companies in New Zealand take steps to embrace car-recycling and make the most of this sector.