China is a big consumer country. With the continuous development of society and the continuous improvement of people's consumption levels, the purchase of automobiles is also growing in proportion to the growth. Auto paint is the main raw material for automobiles. The increase in auto purchases also brings opportunities for the automotive paint market.
According to the data released by the China Association of Automobile Manufacturers, China's total automobile production reached 18,264,700 vehicles last year. In 2011, China's auto sales will exceed 20 million vehicles. The continuous development of the automotive industry will directly boost the demand for refined oil, lubricants, additives, coatings, engineering plastics, and rubber sealing materials. During the "12th Five-Year Plan" period, China's auto production will reach 25 million vehicles, and the total industrial output value will reach 4.5 trillion yuan. The added value of the auto industry will account for 3% of the gross domestic product (GDP), which has become China's economy. The engine of growth, which brings huge business opportunities to the paint coating industry.
The rapid development of the Chinese auto market, especially the rapid progress in the past two years, has enabled China to surpass the United States and Japan in 2009 and become the world’s largest auto export and sales country in terms of vehicle quantity. A data from PPG shows that: According to the average estimate of 85 US dollars per car (including sealant, primer products), the total market for automotive paint OEM (OEM) reached about 1.2 billion US dollars, which does not include agricultural vehicles, motorcycles The market for car paints. However, automotive paint manufacturers with indigenous brands that have grown up in China have not yet taken on the rapid development of the auto industry.
Domestic coatings products Development of difficult automotive coatings is the fastest growing type of paint, second only to architectural coatings, ranking second, and the highest performance requirements of the coating species, including the most demanding car painting requirements. Therefore, car painting materials often represent the highest level and development of the contemporary paint industry. BASF, PPG and DuPont, AkzoNobel and Nippon are the world's leading suppliers of automotive coatings, and have been the absolute leader in China's automotive paint market, and have covered the vast majority of China's automotive market.
There are two major constraints for China's own-brand auto paints to grow hard in China: First, Chinese auto paints are hardly recognized by foreign auto companies. Although China's auto design and manufacturing capabilities have made great strides in the past decade, except for a small number of auto brands such as Chery and SAIC, almost all multinational auto companies still use foreign and Chinese-made models. Its core R&D design and technology center is located at its headquarters. In this way, the multinational automobile company's joint venture automobile factory in China maintains the paint quality standards, testing methods and approval procedures of its foreign parent company, and some even require domestic automotive paint samples to be sent to its headquarters' laboratories for review approval. This is undoubtedly a deadly blow to the development of auto paints for China's own brands. Domestic automotive coatings companies can hardly obtain the technical approval and quality certification of multinational automotive companies' headquarters. They do not have their own raw material technology platform support and global procurement platform support, and their cost competitiveness is weak.
Breakthrough, comprehensive strength needs to be improved. It is a consensus of multinational corporations to invest in the latest models and latest technologies to gain the upper hand. Therefore, the automotive coating line recently put into production in China has concentrated on the latest technology and the most advanced equipment for today's automotive coatings. The accompanying automotive coatings must be simultaneously imported into the latest technologies and products. Although most of the self-owned brands still focus on the pursuit of cost advantages, many automobile manufacturers and automotive paint brands have already pursued the social effects of high quality and environmental protection of automotive paints. Local brands sometimes need more support. Regardless of whether it is from the product, construction equipment or on-site craftsmanship, most of the local auto paint brands have relatively late start, and some technical systems are not mature enough.
China's automobile manufacturing industry is a diversified industrial system. Almost all international brands have joint venture factories in China, and nearly half of local companies. Each company has unique requirements for automotive paints for different types of automobiles. . China's automotive coating market has its unique situation and industry culture. Different manufacturers need to adopt different service methods. For the Chinese market, the automobile industry is a relatively new industry. Products are recognized and accepted by customers. A key factor is service. The professional service can ensure the use effect of automotive paint, and at the same time effectively and timely feedback the customer's use situation and the customer's new needs, a process of self-improvement in the development process.