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Brief introduction of China’s automotive coatings market

Date  2020-07-04 22:34:34 Shenzhen Prechem New Materials Co., Ltd Views

      In China’s automobile original paint market, 75% ~ 80% of the market share is occupied by international brands; In the refinish paint market, about 75% of the market share is occupied by domestic brands, but most of them occupy the low-end market of refinish paint. In the plastic paint market, most of the market shares are international brands. According to the coating consumption of single car, due to the improvement of automobile coating performance and coating technology, the performance that used to be achieved by thick film can now be met in thin film state, and the coating consumption of single car gradually decreases. At present, the coating consumption of a new car is only 60% of that of 10 years ago. At present, the main automobile paint manufacturers are: Kansai, BASF, DuPont, PPG, Nippon, KCC;

      The main repair lacquer manufacturers are: Guangzhou Shichuang, Guangzhou Bangni, Changzhou Planner, PPG, Guangzhou United, Changzhou Fulham, Guangzhou Futian, Guangzhou Yatu, DuPont, Aksu Nobel, Xuanwei, Valspar, BASF, Nippon, KCC, etc. The domestic automobile original paint market is a relatively closed market, and the original paint is generally sold from the original paint supplier to the garage through direct sales, which leads to different prices of each coating of each original paint sold to different garages. There may be a difference of 50% between the prices of domestic cars and imported cars with the same brand specifications. In recent years, there has been vicious price competition in the domestic automobile original paint market. Even if they are foreign brands, in order to compete for market share, the average prices including CED, middle paint and top paint will fluctuate widely from 25 yuan/kg to 35 yuan/kg. Repair paint is the most profitable part of automobile coatings at present. PPG, DuPont and Nippon have set up technical service and technical R&D departments in China respectively, but the core technology and mass production are almost completed overseas.

     Since most repair paints are sold in 4S stores, the primary sales price and secondary sales price of repair paints are different. The average selling price of repair paint of foreign brands is about 7085 yuan/kg. The difference in color will lead to the difference in price. Plain black and white are relatively cheap, but red and yellow are relatively expensive, and pearlescent glitter has the highest price. Domestic automobile repair paint has its own advantages, its quality is close to that of imported products, and its price is only 1/2 ~ 2/3 of that of imported products; In addition, the domestic automobile refinish paint is developed according to the demand of the domestic automobile market, and it is becoming more and more dominant in the Chinese automobile refinish paint market. If the automobile industry wants to avoid scale, it must be dominated by marketization. "In fact, on the surface, China’s automobile industry is indeed the most market-oriented industry compared with real estate and stock market, but the trace of planned economy is still very heavy. A high degree of marketization may inevitably lead to the consequences of overcapacity, but the only thing we can do is that the government and local governments can lean back a little and hand over the decision-making power to the market. The hidden worry is a relief. " However, the investigation shows that there are still some problems in the development of China’s automotive coatings industry, such as lack of innovative technology, backward production control technology, and low coating equipment level.

     On the other hand, foreign coating enterprises are accelerating to seize market share. At present, the market share controlled by domestic famous brand automobile coating enterprises is very small, and the homogenization competition in coating industry is very serious, which makes the profit space of domestic automobile coating enterprises become smaller, and its average profit rate is lower than 10% for a long time. Generally speaking, the demand of automobile paint is increasing, but the price of automobile paint is not increasing. This situation has reduced the profit of auto paint to less than 10% or even negative profit. Whether to compete for market share and lower prices or to maintain prices and profits has become a problem that many auto paint manufacturers have to face in the next few years. (Reprinted from the Internet)