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Analysis of market status and development trend of China's automotive coating industry in 2019 environmental protection coating substitution will become the mainstream of coating line

analysis of market status and development trend of China's automotive coating industry in 2019 environmental protection coating substitution will become the mainstream of coating line, coating,

analysis of the current market situation and development trend of China's automotive coating industry in 2019 environmental protection coating substitution will become the mainstream of the coating line

May 31, 2019

basic overview of the automotive coating industry analysis: Industry chain analysis, classification, development process

as the saying goes: people rely on clothing, Buddha rely on gold. Similarly, the car also depends on painting. Automotive paint not only visually conveys the owner's personality in appearance, but also plays the greatest protective role in dealing with complex and changeable environment, climate and road conditions. Automotive products are vividly known as flowing handicrafts, in which the coating quality is the key factor

1. From the perspective of industrial chain, the upstream of automotive coatings is chemical raw materials, whose price is directly or indirectly related to the price of crude oil, and is also affected by the change of market supply and demand

the midstream is all kinds of automotive paint products

the downstream is the practical application market. In addition to cars, jeeps, buses, trucks and other types of cars, it also includes agricultural machinery products such as tractors, combine harvesters and motorcycle coatings

2. Automotive paint products can be divided into different categories according to different standards. Only from the perspective of vehicle painting, the most common categories are automotive original paint without electrochemical measurement (OEM) and automotive touch up paint, which have great differences in product use, structural design, coating requirements, end customers, sales mode, etc

3. The automobile coating process has experienced a hundred years of development, and its operation mode has evolved from the initial workshop style simple painting to the modern industrial coating with mass flow production today; Its work content has also developed from painting only one layer of paint on the surface of the workpiece that needs to be protected to painting antirust paint on the surface of the workpiece first and then spraying finish paint to the current "paint pretreatment - electrophoresis - intermediate coating - finish paint", etc

at present, the car body coating includes at least four layers: electrophoretic primer layer, intermediate coating, paint layer and varnish layer. Each layer contains complex process steps, and must undergo degreasing, derusting, phosphating and other paint pretreatment before coating. After coating, the coating quality must be tested and evaluated. Compared with "people wear clothes", the "car painting" is a huge project

China's automotive coatings account for only 9.63% of the domestic paint output

at present, architectural coatings account for the largest proportion in China's paint industry market, reaching 36.59%; Automotive coatings in developed countries generally account for more than 20% of domestic paint production, while China's is only 9.63%, mainly because the quality and variety of domestic automotive coatings are inferior to foreign brands, and the phenomenon of relying on imported coatings or products configured with imported semi-finished products and raw materials is serious

in terms of subdivisions, in the automotive coating market, the proportion of automotive original paint is the largest, reaching 44%; The second is automotive touch up paint, accounting for about 26%

statistics on the proportion of segmented products in the market of China's coating industry

data source: prospective industry research institute

statistics on the proportion of segmented products in China's automotive coating market

data source: prospective industry research institute

in 2018, China's coating output was close to 17.6 million tons

since 2010, China's coating output has maintained a fluctuating growth. In 2018, the output of 1336 Enterprises above Designated Size in China's paint industry reached 17.5979 million tons, an increase of 5.9% year-on-year (the paint output data in 2017 was revised to 16.618 million tons). In 2018, in terms of main business income, the total amount of 1998 Industrial Enterprises above Designated Size reached 326.81 billion yuan, a year-on-year increase of 6.5%, and the total profit was 23.648 billion yuan, a year-on-year increase of 5.1%. The downstream of the coating industry is highly dependent, passive and creative. For automotive coatings in the market segment, the vigorous development of downstream vehicles, especially new energy vehicles in recent years, has a significant impact on the coating industry

statistics and growth of China's paint production in

data source: the forward-looking Industry Research Institute sorted out

the production and sales of the domestic automotive industry in 2018 were less than expected

the main driving force for the growth of the automotive paint market undoubtedly came from the growth of domestic automotive production and sales. The domestic automobile industry has been running smoothly on the whole. In 2018, the preferential purchase tax policy was fully withdrawn, coupled with the decline in macroeconomic growth, the Sino US trade war and consumer confidence, the growth rate of China's automobile production and sales was lower than expected. In 2018, China's automobile production and sales scale was 27.819 million and 28.081 million respectively, a year-on-year decrease of 4.16% and 2.76%

at present, China's automobile industry is still in the popularization period, and the market space is still broad. According to the data released by the National Bureau of statistics, in March 2019, the growth rate of China's industrial profits rebounded significantly, and the profits of key industries, including automobiles, significantly recovered. The national medium and long term development plan for the automobile industry predicts that China's automobile output will reach about 35million by 2025. The automotive industry has entered the growth stage of brand upward and high-quality development, and the requirements for all aspects of automotive coatings will also be raised

statistics of China's automobile production and sales scale in Q1

data source: sorted out by the forward looking Industry Research Institute

the number of domestic automobile ownership increased continuously in the year, and the growth rate was not more than 10%. In 2018, the economic situation declined and the consumption environment was uncertain. The domestic car ownership was 23700, and the growth rate slowed down to less than 10%. However, in 2018, the number of new energy vehicles in the country reached 2.61 million, accounting for 1.09% of the total number of vehicles, an increase of 1.07 million or 70% compared with 2017. In the future, the national six year plan will be implemented gradually, the number of domestic new energy vehicles will continue to expand, and the market capacity of automotive coatings will further expand

statistics and growth of China's car ownership in

data source: the forward-looking Industry Research Institute sorted out

environmental protection coatings have gradually become the mainstream

the problem of environmental pollution is becoming increasingly serious, and the national environmental protection policy is also being pressed step by step. For automobiles, in addition to air pollution caused by automobile exhaust emissions, VOCs emissions from automobile coating production lines can not be ignored. In December 2017, according to the requirements of the action plan, China Automotive Technology Research Center formulated the road map for VOC reduction in the automotive industry, and put forward the goals, technical routes and demonstration cases of VOCs reduction in the automotive industry. From December 31, 2018, VOCs emissions per unit painting area of passenger cars, truck cockpits, truck compartments and passenger cars in the automobile painting workshop should be controlled within 35, 75, 90 and 180 g/m2 respectively

driven by the concepts and policies of energy conservation and emission reduction, low-carbon and environmental protection, water-based coatings, powder coatings and high solid coatings are becoming more and more popular in China's automotive coating lines. Among them, the overall technology of waterborne automotive coatings has been quite mature in the world. Compared with traditional solvent based coatings, the dispersing medium of water-based coatings is water. After coating construction, water and a small amount of additives volatilize from the film, which has environmental protection, safety and other properties, but its cost is higher, its service life is shorter, its physical and chemical properties are not as good as oily coatings, and its requirements for the construction environment are relatively high

in recent years, the film performance and construction performance of automotive water-based coatings have been fundamentally improved. In the future, environmental friendly coatings such as water-based coatings will gradually replace traditional solvent based coatings and become the mainstream of automotive coating lines

analysis on the difference between water-based paint and solvent based paint in automobile coating

source: the prospective industry research institute sorted out

in the technical route proposed in the "road map of volatile organic compounds reduction in the automotive industry", from the material process, coating workshop to the final recycling management, it provides the direction of technical transformation for coatings and coating lines. Vigorously promote the use of environmentally friendly coatings in the selection of materials and processes; In the coating workshop, it is encouraged to promote the transformation of traditional coating lines with water-based or high solid content, improve the degree of coating automation, and optimize the coating process; In the process of recycling and comprehensive treatment, enterprises are encouraged to set up centralized collection devices for waste paint

analysis of the competitive pattern of China's automotive paint Market

since China's entry into WTO, large international paint manufacturers have set up factories in China in the form of joint ventures or sole proprietorship, occupying the market share of China's automotive paint field. While improving the overall technical level and production capacity of the industry, it also intensifies the degree of market competition. At present, there are only a few independent brand automobile coating enterprises that can independently develop and produce in scale in China, forming a competitive pattern between foreign famous coating enterprises and a few domestic enterprises

from the perspective of the overall pattern of China's automotive paint market, China's automotive paint market is relatively closed, and most enterprises are concentrated in the low-end market, and the domestic high-end automotive paint market is almost monopolized by foreign brands. Among foreign brands, Japanese automotive coatings market is dominated by Kansai coatings and Nippon coatings; Korean system mainly adopts KCC coating; The European and American systems mainly include Ashtar paint, PPG paint, BASF paint and AkzoNobel. After foreign automobile coating brands entered the Chinese market, the production base mainly set up digital display full-automatic impact testing machines around the domestic automobile industry cluster to generate signals through high-speed load measurement sensors

looking at the 2018 financial reports of the five major international coating giants, in addition to AkzoNobel's net sales decreased by 4%, the sales of Xuanwei, PPG, Nippon and aishide all increased by different ranges. In 2018, Xuanwei ranked first with sales of US $17.53 billion. After ranking first in 2017, the synergy of the acquisition of Valspar gradually emerged. According to the data, the gap between the three paint giants is growing. In 2017, the sales of Xuanwei and PPG were $14.98 billion and $14.9 billion respectively, with a very small gap; In 2018, there was a difference of nearly $2billion between Xuanwei and PPG

according to the "2018 list of single champion enterprises in China's paint industry" released by coating industry, the paint enterprise with the largest market share in the field of automotive paint in China is American PPG, whose automotive paint (passenger cars) has a market share of about 30% in China

In, PPG's sales in the Asia Pacific region increased steadily, reaching US $2.618 billion in 2018, with a year-on-year increase of about 3.9%. Among them, high-performance coatings in the Asia Pacific region maintained a good growth momentum, achieving sales of $1.071 billion in 2018, an increase of 10.35% year-on-year; The performance of industrial coatings decreased slightly by 0.04%, with sales of US $1.547 billion. Due to the weak demand in the Chinese and European automotive markets, PPG automotive original equipment manufacturer (OEM) coating sales in 2018 fell by about 5% year-on-year, in line with the growth rate of global automotive production

jinlitai is the only self owned brand in China that can provide cathodic electrophoresis and topcoat coatings to the automotive industry on a large scale at the same time. It has occupied the mainstream position in the commercial vehicle coating market, but it has just started in the passenger vehicle coating market, with a very small market share. In, jinlitai's operating income increased year by year, and the growth rate of revenue slowed down. The realization of 8% revenue in 2018 must mark the experimental data and mark them at both ends 0.9 billion yuan; In, jinlitai's net profit showed a rapid downward trend, falling to 11.0742 million yuan in 2018, a year-on-year decline of 77%

on May 6, 2019, Jin Litai announced that Pan Kai, the chairman, general manager and acting chief financial officer of the company, recently submitted his resignation, and his performance of his duties was only more than one year. In recent three years, the important leadership positions such as chairman and general manager of jinlitai have changed frequently, and the company has three directors

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