Development Status of China Automotive Coatings Market

Automotive paint refers to the paint applied on the bodies and parts of various types of vehicles such as cars. It generally refers to paints and auxiliary materials for new cars and vehicle repair coatings.

According to the data, at present, China’s auto sales have exceeded 18 million vehicles in a row, and the rapid growth of car sales has strongly promoted the continuous development of the automotive paint coating business, bringing huge business opportunities to the automotive coatings industry.

In the past 50 years, there has been a great change in the color and construction of automotive finishes, both from the base materials and topcoats. Mainly in the base material from the nitro lacquer to the amino alkyd enamel, the primer with the self-drying alkyd resin enamel to the thermoplastic acrylic enamel, which thermosetting acrylic enamel and polyurethane stain resistance, etc. have been great Increased, this will increase the protective performance of the topcoat.

Some foreign analysts predict that the annual compound growth rate of the global automotive paint market in 2013-2018 will be 5.59%. One of the main factors contributing to this market growth is the growth in the demand for various coatings.

The China Association of Automobile Manufacturers announced that in 2013, the growth rate of national automobile sales reached 13.9%, sales reached 21.98 million, and the output reached 22.11 million. In 2014, the passenger car market will continue to grow at an average annual rate of around 10%. This growth rate will continue for three years.

The 10% growth in China's auto market in 2014 comes from the fact that the purchasing power of these provinces is being released from the provincial capital, the provincial center cities to second-tier cities and third-tier cities, or the third and fourth-tier cities. These will require a lot of automotive paint, automotive paint will have a larger increase in demand.

In the Chinese automotive original paint market, 75% to 80% of the market share is occupied by international brands; in the refinish market, about 75% of the market share is occupied by domestic brands, but most of them are occupied by refinish paint. The low-end market.

In the plastic paint market, most of the market share is still international brands. With regard to the amount of bicycle coatings, due to the improvement of the performance of automotive coatings and the continuous improvement of coating technology, the performance that can be achieved only if thick films are required before can now be satisfied in the film state, and the amount of single paint for automobiles is gradually decreasing, and a new car is currently used. The amount of paint used was only 60% 10 years ago.

At present, the main automotive paint manufacturers are: Kansai, BASF, DuPont, PPG, Nippon, KCC; major repair paint manufacturers are: Guangzhou Shichuang, Guangzhou Bonny, Changzhou Pulan, PPG, Guangzhou United, Changzhou Fareham, Guangzhou Foton, Guangzhou Acto, DuPont, AkzoNobel, Sherwin-Williams, Valspar, BASF, Nippon, KCC and others.

The domestic automotive original paint market is a relatively closed market. Original paints are sold directly from the original paint supplier to the car manufacturer through direct sales, resulting in the sales of each paint of each original paint to different car manufacturers. The price is different. The price of a car paint of the same brand specification sold to domestic cars and imported cars may differ by 50%. In the domestic automobile original paint market, price vicious competition has occurred in recent years. Even if they are all foreign brands, the average prices including CED, middle and topcoats will also range from 25 yuan/kg to 35 yuan/kg in order to compete for market share. Between a wide range of fluctuations.

Refinish paint is the most profitable part of current automotive coatings. PPG, DuPont, and Nippon set up the technical service and R&D department for refinish in China respectively, but almost all of the core technologies and mass production are completed overseas. Since most of the refinish lacquer is sold in the 4S shop, the refinish lacquer's primary sale price and secondary sale price are different.

The average selling price of foreign brand refinish paint is around 7,085 yuan/kg. The difference in color will lead to price differences. Plain black and white are relatively cheap, but red and yellow are relatively high in price, and the price of pearlescent glitter is the highest. Domestic auto refinish has its own advantages, its quality is close to imported products, the price is only imported 1/2 ~ 2/3; In addition, domestic auto refinish paint developed according to the needs of the domestic auto market, more and more in the Chinese auto refinishing market Dominant.

If the auto industry wants to avoid large-scale, it must be dominated by marketization. "In fact, on the surface, China's auto industry is indeed the most market-oriented industry relative to real estate and the stock market, but the traces of the planned economy are still heavy. The high degree of marketization may also inevitably have the consequences of excess capacity, but we The only thing that can be done is that the government and the local government can rely on the government and rely on the decision-making power to the market. This is a relief to the hidden worries of scale."

However, the root investigation shows that there are still some problems in the development of China's automotive coatings industry, such as lack of innovative technologies, backward production control technologies, and low level of paint equipment. On the other hand, foreign paint companies are accelerating the grab market share. The current status quo is that the domestically-owned brand-name auto paint companies have a very small market share and the homogenization competition in the paint industry is very serious. This makes domestic auto paint companies' profit margins smaller, and their average profit margin is below 10% for a long time. .

In general, the demand for automotive paint is increasing, and the price of automotive paint has not increased. This situation has already reduced the profits of auto paint to less than 10% or even negative profits. Whether to compete for market share and lower prices or maintain prices to maintain profits has become a problem many auto paint manufacturers have to face in the next few years.