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Critical enablers and inhibitors for economic sustainability in the supply and demand of end-of-life vehicles in Malaysia: a SWOT analysis

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Abstract

End-of-life vehicles (ELV) management is essential for sustainable development and waste minimization. However, the ELV recycling companies are facing supply and demand uncertainties in the product recovery of ELV. This study aims to identify the critical enablers and inhibitors for economic sustainability in Malaysia’s supply and demand of ELV. The study adopted a qualitative interview approach in six ELV-related case companies. A Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis was performed to assess the identified enablers (strengths and opportunities) and inhibitors (weaknesses and threats). The common strengths presented are the quality of cores (used parts) received and the strategic location of the case companies to optimize the reverse logistic network. The highlighted weaknesses are lack of established standard operating procedures, low employee specialization skills, and poor adoption of Industry 4.0 enabling technologies. The identified opportunity includes specific market demand from targeted customers, while the most prevalent threats are supply uncertainty in quantities of cores, no ELV policy in Malaysia, an inadequate subsidy system, customer misconceptions, and a market acceptance barrier for ELV products. The case companies and relevant stakeholders can formulate appropriate business strategies and policy frameworks to improve economic sustainability for optimizing the value chain of ELV in Malaysia.

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Abbreviations

ELV:

End-of-life vehicles

SWOT:

Strengths, Weaknesses, Opportunities, and Threats

6R:

Reduce, Reuse, Remanufacture, Recycle, Recover, and Redesign

SM:

Sustainable manufacturing

TIV:

Total Industry Volume

RTD:

Road Transport Department

NAP:

National Automotive Policy

ACR:

Automotive components remanufacturing

OEM:

Original equipment manufacturers

CE:

Circular economy

4R2S:

Reuse, Recycle, Remanufacturing, Repair, Service, and Spare Parts

EOL:

End-of-life

MAARA:

Malaysia Automotive Recyclers Association

AATF:

Authorized automotive treatment facility

SOP:

Standard operating procedure

RQF:

Remanufacturing Quality Factors

AM:

Additive manufacturing

IoT:

Internet of Things

AP:

Approval Permit

SMEs:

Small and medium-sized enterprizes

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Acknowledgements

The research has been carried out under Konsortium Kecemerlangan Penyelidikan [JPT(BKPI)1000/016/018/25(72)] provided by the Ministry of Higher Education of Malaysia (UTM Vot. No. R.J130000.7809.4L943). The authors also would like to express their gratitude towards the MAARA and the case companies for their dedicated support.

Funding

This study was supported by Ministry of Higher Education of Malaysia, UTM vot no. R.J130000.7809.4L943, Muhamad Zameri Mat Saman.

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Authors and Affiliations

  1. Faculty of Mechanical Engineering, Universiti Teknologi Malaysia, 81310, Skudai, Johor, Malaysia

    Jia Yuik Chong, Muhamad Zameri Mat Saman & Nor Hasrul Akhmal Ngadiman

  2. Advanced Manufacturing Research Group, Frontier Material Research Alliance, 81310, Skudai, Johor, Malaysia

    Jia Yuik Chong, Muhamad Zameri Mat Saman & Nor Hasrul Akhmal Ngadiman

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  1. Jia Yuik Chong
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Correspondence to Muhamad Zameri Mat Saman.

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Chong, J.Y., Mat Saman, M.Z. & Ngadiman, N.H.A. Critical enablers and inhibitors for economic sustainability in the supply and demand of end-of-life vehicles in Malaysia: a SWOT analysis. J Mater Cycles Waste Manag 25, 3048–3064 (2023). https://doi.org/10.1007/s10163-023-01738-0

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