Audi sets up Audi Circular Solutions to sell used parts

Audi is turning the end of a vehicle’s life into a business line. A new wholly owned subsidiary, Audi Circular Solutions, will sell used genuine parts, dismantle old vehicles and recover raw materials for Audi’s supply chain from early 2027.

The first step is a central sales channel for used genuine Audi parts, aimed at private and business customers in Germany and other European markets, with other brands’ parts to follow. The subsidiary will then buy used vehicles and components, manage a network of specialist dismantling partners and secure secondary raw materials, with recycled plastics a key focus. It will start by dismantling vehicles Audi already owns, such as its internal fleet.

“Our collaboration model combines Audi’s strengths with the expertise of specialized partners working locally across Europe. This lets us move quickly to implement the circular economy consistently and, step by step, build a scalable, profitable business model,” said Michael Gick, Managing Director of Audi Circular Solutions.

The unit builds on Audi’s MaterialLoop pilot projects and the Volkswagen Group’s wider circular economy strategy, which includes an industrial dismantling line at the Zwickau plant.

Regulation is part of the motivation. The EU’s planned End-of-Life Vehicles Regulation would set minimum recycled plastic content for new cars, so securing supply early makes sense. Audi’s stated aim of making the business profitable, rather than treating it as a compliance cost, sets a higher bar.

Why this matters:

• Recycled content targets drive integration. Moving into vehicle purchasing and dismantling suggests automakers expect the EU’s End-of-Life Vehicles Regulation, with its recycled plastic content targets, to make secure access to post-consumer material a supply chain priority.
• Automakers enter the used-parts market. A central channel for used genuine parts, later extending to other brands, puts Audi in direct competition with independent dismantlers and aftermarket distributors, and could influence repair costs for insurers and fleet operators.
• Feedstock access remains the constraint. With millions of end-of-life vehicles leaving the EU’s official recycling system each year, buying vehicles directly suggests automakers see control over scrappage volumes as essential to making circular business models viable.