The India automotive paints and coatings market is expected to grow at a CAGR of over 3% during the forecast period. Major factor driving the market studied is increasing demand from automotive refinish sector. On the flip side, fluctuating automotive industry and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- Growing demand for light weight electrical vehicles is forecasted to offer various opportunities for the growth of the market over the forecast period.
- By resin type, polyurethane resin is expected to dominate the market studied over the forecast period.
Key Market Trends
Polyurethane Resin Type to Dominate the Market
- A polyurethane coating is a layer of polyurethane that is applied to a material's surface to protect from erosion, enduring, scraped spot and different procedures that would corrode the material after some time
- Polyurethane coatings provides car exterior with the high gloss, durability, scratch resistance and corrosion resistance and it is also used to glaze windshields and windows, increasing strength and providing fog resistance.
- The PU coating has extremely strong water-repellent characteristics and has capability of making fabrics completely waterproof which can be applied once or multiple times on the surfaces of the automotive parts,
- The usage of polyurethane coatings in automotive is expected to witness a significant growth in coming years due to strict regulation against VOC emissions and favourable government initiatives promoting the usage of powder coatings.
- Owing to the above mentioned factors demand of paints and coatings of polyurethane type is likely to dominate the market studied over the coming years.
Automotive Refinish to Witness a Rapid Growth During the Forecast Period
- Automotive refinishing coatings are used to enhance the appearance and repair the damages caused by external factors, such as temperature, and damage from accidents, stones, and other debris.
- The refinishing coatings are considered for after market applications of light vehicles, buses, heavy-duty trucks, and specialty OEMs, and are also used by automotive body shops and repair centers for refinishing vehicles.
- The increased focus on R&D and innovative methods to reduce the cycle time is driving the need for automotive refinish coatings and the reduced cycle time encourages the customers to go for automotive refinish coatings more often, which in turn increases its demand for automotive paints and coatings.
- The sales of passenger vehicles declined by almost 20% in 2019, with 3,623,335 units of production in 2019, compared to 4,032,481 units in 2018 . Similarly, the light commercial vehicles segment declined by 10% in 2019, compared to the same period in 2018.
- Closure of many automotive manufacturing plant due to spread of Covid-19 is likely to hamper the growth of automotive paints and coatings in India. However in the long run market is forecasted to recover at a steady state.
The India automotive paints and coatings market is partially consolidated in nature with only few major players dominating the market. Some of the major companies are Akzo Nobel N.V., ppg asianpaints, Berger Paints India Limited, Kansai Nerolac Paints Limited and Nippon Paint (India) Company Limited.
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