Audi Sets Up Subsidiary to Sell Used Car Parts

German carmaker Audi has established a wholly owned subsidiary, Audi Circular Solutions, which from the start of 2027 will trade in used original parts, dismantle old vehicles and recover raw materials for Audi's supply chain. The company is thereby turning the end of a car's life cycle into a new line of business, and in doing so becomes a direct competitor to independent car dismantlers.

First step: a centralised sales channel

The initial task is to build a centralised sales channel for used original Audi parts, aimed at private individuals and business customers in Germany and other European markets. The range is to be expanded later to include parts from other brands.

The subsidiary will buy used vehicles and components, manage a network of specialised dismantling partners and secure secondary raw materials, in particular recycled plastic. At first it will dismantle vehicles owned by Audi itself, such as cars from the company's internal fleet.

"Our cooperation model combines Audi's strengths with the experience of specialised partners who work at local level across Europe. This allows us to introduce a circular economy quickly and consistently and to build a scalable, profitable business model step by step," said Michael Gick, managing director of Audi Circular Solutions.

Pilot project and regulation behind the move

The new unit builds on Audi's "MaterialLoop" pilot project and on the wider circular economy strategy of Volkswagen Group, which also includes an industrial dismantling line at the Zwickau plant.

Upcoming changes in legislation are partly behind the step as well. The planned EU End-of-Life Vehicles Regulation will set a minimum share of recycled plastic in new cars, so securing supplies in good time is strategically important.

By entering the used-parts market, Audi will compete with independent dismantling companies and aftermarket distributors. In the long term this could also affect repair costs for insurers and fleet operators.