Nature Positive Role of the Automotive Sector China Deep dive
Page 11 of 43 · WEF_Nature_Positive_Role_of_the_Automotive_Sector_China_Deep_dive.pdf
China’s automotive sector has grown rapidly,
especially over the last few decades. In 2012,
China became the largest automotive market, and it
continued to grow at an average of 15% each year
until 2019.10 In 2023, China became the world’s
largest automotive exporter.11
As highlighted in the global report on the
automotive sector, the sector depends on
environmental assets and ecosystem services to
function and grow across its entire value chain,
creating significant risk, given the complexity of global supply chains. Accounting for around 35%
of global automotive production and close to 40%
of global automotive sales, China’s automotive
industry is uniquely positioned to spearhead the
global transformation of the sector, mitigate nature
risk and contribute to nature-positive goals.
This report encompasses the entire automotive
industry value chain, in alignment with the global
report. The definition of the automotive sector
can be referred to in Box 1 (page 15) of the
global report.
End-of-life*
dismantling,
remanufacturing
and recycling
Aftersales*
Maintenance,
service,
insuranceB2B sales*
Fleet
customers,
leasing, and
other salesUse phase B2C sales*
Retail sales
and logistics
RecyclingRemanufacturingRe-useUpstream Downstream
Inorganic and
organic feedstock
and raw material
supply – including
metals and minerals,
chemicals and
agricultural products
(e.g. leather, rubber)
Energy and
water supply
Machinery
and transport
equipment supplyTier 2, 3 and
n suppliers
Manufacturing
of materials
and auto part
componentsTier 1
suppliers
Manufacturing
of auto parts Midstream
(direct operations)
Automotive
original equipment
manufacturers
(OEMs)
Manufacturing
(fabrication,
painting,
thin-coating)
and assembly
of vehiclesIllustrative automotive value chain FIGURE 2
*Sales and aftersales may be conducted by OEMs (midstream) or by independent retailers/service providers (downstream); end-of-life is not covered in the analysis
of impacts and dependencies
11 Nature Positive: Role of the Automotive Sector – China Deep-dive
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