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

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.